Ecotourism Economics and Environment

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Ecotourism Economics and Environment

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Earth provides enough to satisfy every man’s need but not every man’s greed. Mahatma Gandhi

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Preface The traditional perspective on tourism was limited to that of the once in a while excursions undertaken at the time of vacations for relaxation. Realizing the potential of tourism as a source of income and possible employment generation in the host region, efforts and developments were directed and concentrated towards attracting maximum visitors to the locality. With its commoditization tourism industry began to grow multifold with a wide impact and influence on the economic, social, cultural and environmental aspects of the society. This hasty approach that focused more on quantity overlooked the qualitative factors and mass tourism came into existence. While importance was given to mass tourism, little attention was paid to protect the environment, local culture, tradition, or the improvement of livelihood opportunities in the locality. The resulting negative impact gave rise to the need of including the principles of sustainable development and environmental consciousness into the crass commercial aspects of tourism and the concept of ecotourism developed and gained prominence. Ecotourism suddenly began to be viewed as the magic potion which can nullify the negative impact created by mass tourism. At present the need and importance of ecotourism is widely recognized, and is the central focus of a number of discussions and debates. Consideration is also supposed to be given to the concepts of ecotourism while tourism policies are formulated by the governments. Even then how far has the ground reality improved? How effective are the policies in ensuring sustainable development? Do they really promote ecotourism, Can they be watered down to promote rapid development? Are the ecologically friendly, economically viable and environmentally sustainable concepts of eco-tourism, really applied? In the due process, is the true meaning of vi


ecotourism lost and waylaid, resulting in the masquerading of mass tourism as ecotourism? What are the damages caused by mass tourism and how can ecotourism resolve the issues created by mass tourism? What is the economics behind ecotourism? Tourism indeed is needed especially from a developing nation‟s perspective, but how far is it sustainable? How sustainable is tourism and how can the sustainability factors be measured? Is inclusive growth ensured? This book is a collection of essays by scholars from different walks of life which answers some of these questions and also throw light into the different aspects of ecotourism including its theoretical and practical dimensions. The book is divided into two parts based on the nature and content of its chapters. The first part, covers the different theoretical aspect of ecotourism and the practical issues, including the various dimensions of ecotourism at the national and regional level. The second part of the book is devoted to specific case studies carried out in different tourism locations in India. Jairous Joseph Miti draws a clear picture of what is happening in another part of the world, the sub Saharan Africa where economic activities have not benefitted the local communities and continue to pose a threat to the environment and its sustainability. Miti stresses on the need for “social policies that will result in viable redistribution in social policy and administration systems, in regulation of economic activity on the environment, improved mechanisms and strengthened social policy roles towards the environment, so as to protect the environment and for making decisions and practices that safeguard the environment for the benefit of generations to come”. Bishnu Prasad Mohapatra discusses the outcome of the interaction between environment policies, particularly forest policies with politics and its impact on ecotourism in Odisha. Bishnu looks at the evolution of the policy process that has evolved into participatory forest management, raises question on the politics of environment and the double standards in it.

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Many projects are started in the guise of ecotourism eventually ending up creating negative impacts as equivalent as mass tourism if the purpose for which it is established is forgotten along with improper management and monitoring Such ecotourism projects eventually scoop down to the level of mass tourism. Mini Nair based on the study of three ecotourism projects which was scaled up in the PPP model with the involvement of the private sector notices its impact on the environment and on the local community of the region. She finds out that the negative impacts are because of policy failures and the lack of protection of natural resources as they are not strictly monitored. In the background of the larger neoliberal approach in development which has no consideration for sustainable development, eco tourism is a contradictory stand point. Is the neo liberal stand that the state is taking resulting in the death knell of the welfare based sustainable development? Is the neo liberal approaches and the interventions based on it the reason for the issues in the operation of eco projects? Rajasree K R examines the ecotourism projects under the neo-liberal regime and argues the need for a radical change in policy and practice. Alex K Thottunkel examines the two entirely diverse approaches to tourism, ecotourism and mass tourism. The article stresses on the need and importance of ecotourism and deliberates on the role of local government in developing ecotourism. The paper takes a quick look at the current tourism scenario of Munnar and reasons the need for development of ecotourism in the region. Justin John Stephen‟s study on Dang district of Gujarat is a discussion on how sustainable development can be brought about by Networking and Co-Creating of the several actors and entities to attain the objective of sustaining nature and the society in order to fulfil the needs of the present without compromising the future needs. Shamila elaborates on the positive aspects of ecotourism and the negative aspects that are possible in the absence of a proper viii


management plan and stresses the need for proper evaluation of eco tourism projects. Dr.A.M.Ravindran elaborates on the criteria‟s that must be used to evaluate the sustainability of tourism, namely, Sustainability criteria, Educational criteria and Local participation criteria. The seven techniques for measuring tourism provides us a basis for analysing the sustainability of a tourism location. Dr. Inderjeet Singh Sodhi taking cues from some of the best ecotourism projects and practices in the country lists out a number of more broadly applicable objectives, strategies, features, findings, and lessons which can be applied to other tourist destinations elsewhere to improve their capacity to benefit from and become ecotourism locations. The project based approach suggested might be of help in converting existing tourism projects to an eco-tourism based one. The study analyses the EcoCertification Scheme of Hotels and Restaurants, the Thenmala Eco-Tourism Project in Kerala, and the Preparation of Kanchipuram Town Eco City Plan and calls for the framing of effective ecotourism laws, rules, regulations and environmental measures. Shelji Mathew and Neetha Francis examines the scope of ecotourism in Wayanad and puts forth suggestions to make Wayanad an ecotourism destination. Paper on Economics of Ecotourism by Biju Abraham discusses the various economic sides of ecotourism and the issues associated with calculating the Economic Impact of Ecotourism. The paper also traces the history of ecotourism and describes the economic effect of ecotourism on the host household. Tourism indeed is needed as an economic driver which can generate employment and contribute to the GDP from a developing nations stand point. Nagaraj S discusses the positive impact of capital investment on tourism for the state economy by way of foreign exchange earnings and the contribution of the sector to the revenue earning of the state. ix


Mumtaz claims that with the increase in disposable income among middle class there is an upward increase in domestic tourism in India. But in tandem with the growth in tourism there is no upward increase in the policies concerning safety measures to protect the fragile ecosystems in the country. The paper titled Tourism in Munnar: Role of Local Self Government and Impact on Local Community is the study report of Department of Economics, Munnar Government Arts College which examines the impact of tourism on the local communities and analyses the role, local self government can play to promote and sustain ecofriendly tourism in Munnar. This study point out the need for the local self government to get actively involved with tourism related activities to ensure that the principles of ecotourism are truly followed so as to ensure the conservation of nature and improvement in livelihood opportunities. Benny Kurian gives an overall picture of nature based tourism with special focus on Chinnar wildlife sanctuary and tries to understand whether the nature tourism practiced there is really following the concepts of eco tourism. Beach tourism could be successfully developed in a State like Kerala with its lengthy coast line. Still if regulations based on sustainable concept is not there it can create several negative impacts. Dr.Sudheer.S.P, Dr. P.Arunachalam, Dr. P.Anvar discuss the environmental aspect of beach tourism taking Cherai Beach as a case study. Paul V Mathew elaborates on how ecotourism is successfully practiced in Thekkady. The paper discusses the successful community participation in both tourism development and environmental conservation which has resulted in effective destination management and has assured sustainable livelihood to the destination community. Prasanth Udayakumar and Alphonsa K Joy examines how ecotourism is used as a tool for environmental conservation and x


suggest a model to improve the current ecotourism practices in Satkosia Tiger Reserve, a popular eco-tourism destination in the State of Odisha. Paper by Manesh N A, James Joseph, Ajish A discusses the shopping experience of tourists who visit Munnar. They point out the need for government intervention to ensure quality and fair price. We feel this preface will remain incomplete if we don‟t remember the invaluable help and services received from various corners in materializing this work. The origin of the book and its ideas came from a national seminar conducted at Government Arts College located at Munnar one of the most popular hill stations in the State of Kerala. Kerala, the narrow strip of land that extends from the Arabian Sea with its sunny beaches to the mist laden hill stations of the Western Ghats, consists of numerous lakes, forests and rivers that crisscross the State. It is its bountiful natural beauty which made Kerala to be aptly named and known all over the world as “Gods own Country”. This lavish blessing of Nature enabled the tourism industry to well establish in the State. But how far is the continuity of this blessing ensured? Is anything done to conserve and preserve the environment? Especially in Munnar where the seminar was conducted the abuse of nature is very apparent. The once pristine and picturesque place is now rapidly becoming another polluted concrete jungle. The field study by the Postgraduate Department of Economics confirmed what is visibly evident. So we felt that the papers presented and received ought to reach a wider audience who might share our concern. Interestingly the papers received from other parts of India as well as a paper from Sub Saharan Africa have similar stories to tell, which confirms our hunch that this is a common issue among all the developing regions when it comes to rapid development especially in sectors which exploit common resources. The policies and practices related to development practiced now are counterproductive to the environment, the community and the supposed to be general good. Only “the very few” derive the xi


benefits while the lives of the “the many” who have a much higher rightful share of the common resources, remains as it is without much improvement. In this background and in the current scenario ecotourism seems to be the best alternative option that is available when it comes to tourism. The strength of ecotourism is in the valid, normative principles based on which it is built. These principles ensures development without much compromise on the principles of sustainability. Though eco tourism in some literature, even now is only connected with the environment, it is much more complete as it covers not only the environmental aspects but also the social, cultural as well as the economic aspects of the host community. Interestingly many incomplete variants of ecotourism is also practiced nowadays for convenience in different names. No other forms of tourism in whichever name it is known can match with ecotourism for the protection of the environment, building up livelihood opportunities, for protecting the culture or from preventing negative social aspects from inflicting the host region. If the concepts of ecotourism are practiced completely in its truest sense, indeed it will make a huge positive difference for the present as well as the future generations. We hereby express our gratitude to the Principal, Staff and Students of Government College Munnar, Idukki, Kerala who have put endless effort in making the national seminar a success. All the key speakers and the participants are also remembered with gratitude. Our heartfelt thanks to all the contributors of the articles and the reviewers without your effort, this book would not have materialized. We are also grateful to all those who are associated with the field study and preparation of the report. Dr. Jos Chathukulam requires a special mention for kindling in us the idea of conducting a field study, for making himself available whenever we approached him and for his constant support at its various stages. Our thanks to all those who are associated with the publishing and marketing of this book and finally you the reader for selecting this book. For us publishing this book is for a much higher cause. Hence we the editors have decided to keep the price of this book as low as possible and to publish this book without taking any royalty xii


whatsoever, regardless of the time, money and effort spend by us for publishing this book. We have decided that whatever royalty that will be earned from the sale of this book will be utilized for the benefit of the poor students enrolled in Government College Munnar, as well as for supporting any activity by the students, that will result in the promotion of environmental consciousness in the society. The Editors Biju Abraham K Nagarajan Alex K Thottunkel

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Content List S. no.

Content

Page no.

Preface

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Part I

1 2

1.

Environmental Sustainability and Social Welfare in Sub. Saharan Africa Do we really Care? A social policy perspective - Jairous Joseph Miti

2.

Forest Policies, Environment Issues And Politics of Sustainability In India- A Study of Odisha - Bishnu Prasad Mohapatra

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3.

Community Based Eco-Tourism In Andhra Pradesh - Mini Nair

31

4.

The Fate of Sustainable Development In India Under Neo-Liberalism: A Study of Major Ecotourism Projects In The State of Andhra Pradesh - Rajasree K R

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5.

Relevance of Eco Tourism In The Context of Mass Tourism Development With Reference To Munnar - Alex K Thottunkel

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6.

Networking And Co-Creating The Eco-Tourism Entrepreneurship In The Region Gujarat: A Holistic Approach To Sustainable Development - Justin John Stephen

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7.

Role of Ecotourism In Environmental Sustainability - Shamila . V.U

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8.

How To Sustain Sustainable Tourism: Issues And Options - Dr.A.M.Ravindran

92

9.

Eco-Tourism Projects In India-Learning Lessons And Strategies - Dr. Inderjeet Singh Sodhi

106

10.

Ecotourism For Ecofriendly, Guest And Green Host- A Case Study On Wayanad -Shelji Mathew, Neetha Francis

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11. Economics of Ecotourism - Biju Abraham 12.

13.

Kerala Tourism-Where We Are And Where We Have To Go? - Nagaraj S

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151

Increasing Income Levels And Ecotourism In India - Mumtaz Begum

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Part II

169 170

14.

Tourism in Munnar: Role of Local Self Government and Impact on Local Community: A Study conducted by the Post Graduate Department of Economics, Govt. College Munnar, Kerala - Dr. Jos Chathukulam, Shri. K Nagarajan, Shri. Alex K. Thottunkel, Shri.Biju Abraham, Anish J, George J, Dhanalakshmi, Maheswary R, Manju Shaji, Ranjith Kumar M, Satheesh R xv


15.

Successful Endeavors In Eco-Tourism: Experiences From Thekkady, Kerala - Paul V Mathew

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16.

Nature Tourism And Environmental Sustainability - A Case Study Of Eco- Tourism In Chinnar Wildlife Sanctuary - Benny Kurian

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17.

Beach Tourism In Kerala And The Potentials of Cherai Beach- An Empirical Study - Dr.Sudheer.S.P, Dr. P.Arunachalam, Dr. P.Anvar

207

18.

Ecotourism As A Sub-Component Of Environmental Sustainability:A Study On Satkosia Tiger Reserve - Prasanth Udayakumar, Alphonsa K Joy

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19.

An Evaluation Of Tourists‟ Shopping Experience With Special Reference To Munnar - Manesh N A, James Joseph, Ajish A

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W

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Part I Theoretical aspects , practical issues and various dimensions of Ecotourism

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Environmental Sustainability and Social Welfare in Sub Saharan Africa: Do we really Care? A social policy perspective Jairous Joseph Miti*

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Abstract: The need for economic stability has increased human activity on the environment. With a focus on Sub Saharan Africa, this paper applies the role of social policy to understand the situation of environmental sustainability. Established indications shows that economic activities in Sub Saharan Africa are continuously impacting the environment and have not significantly contributed to improved social welfare. Drawing examples from some selected countries of Sub Saharan Africa, it is established that efforts exist to manage the economic activities and environment at the global and national level. However, Social Policy has a not been adequately applied to ensure that gains from the natural resources are redistributed equally. There is absence of effective regulation of economic activities that impact on the environment. There is need for Sub Saharan Africa to strengthen administrative mechanism and social policy to ensure enhanced efforts in environmental sustainability. Social science researcher has a pivotal role to scale up research on the subject. Keywords: Sub Saharan Africa, Social Policy, Environment, Redistribution Background Sub Saharan Africa is a fast growing region with a population of about 800 million people. This is an interesting region to look at. In a world characterized by insatiable desire for economic gain, social aspect of human life can also not be neglected. _________________________________________ *School of Humanities and Social Sciences, University of Zambia. [email protected] 2



In one conversation with a colleague, I was asked why the region seems to top the list when it comes to social and political problems. I had no answer, and I do not think I can provide any direct response. It is difficult. When it comes to environment and welfare, there is a common notion, at least also reported by Mabogunje (1998), that „conventional wisdom views the people of Sub Sahara Africa as highly irresponsible toward the environment and looks to the international community to save them from themselves.‟ What is of interest also is that there is an inclination to explain environmental sustainability issues in Africa by pin pointing the fast increase in population and poverty. It is not clear, the extent to which these can explain environmental sustainability in the region. Certainly, poverty and population do not present a magic button to explain environmental sustainability and social welfare. The whole issue is complex. As complex as the issue is, I take a social policy perspective with hope to link environmental sustainability and social welfare. My basic question is regarding “Environmental Sustainability and Social Welfare in Sub Saharan Africa: Do we really Care?” I attempt to draw evidence from economic activities, as well as social policy at global and national level. The subject is far wide that it is not holistically addressed in this article. However, I hope the article contributes to debate, provides lessons, and leaves behind questions surrounding environment, social welfare and social policy. Economic activities and the Environment in Sub Saharan Africa All human activities occur in an environment. In Sub Saharan Africa, the need to improve macroeconomic complexion is evident as most countries are not passive. There is a dominance of investments in natural resources and infrastructure as well as agriculture. Most African countries‟ economies are largely driven by natural resource. If we consider agriculture for example, the sector accounts for 65 percent of Africa‟s labour force contributing 32 percent of gross domestic product (World Bank 2013). In Sub Saharan Africa alone, 55.2 percent of the total population works in 3



agriculture. As regards investments in the sector, it is difficult to pin-point estimation for most countries in the region because of various factors including the complexity of public expenditure to farming inputs and other auxiliary services such as roads in the rural settings. It is also difficult to tell from various data sets whether expenditure is directed to public or private goods (Lowder and Carisma 2011). What is essential in our case is awareness that investment in agriculture is a key determinant of productivity growth and is essential to meet growing demands on the sector (Cramon-Taubadel S von. et al, 2009) and this investment can go quite broadly beyond the immediate needs associated with agriculture but also include infrastructure. World Bank (2013) reports that growth in agriculture in Africa has been mostly based on area expansion, but that land is scarce and many countries are facing limits to further expansion. As a result, World Bank recommends that land and agricultural productivity must increase because African farm yields are among the lowest in the world. As the World population is growing, so is the demand for food which in a way is an argument to support World Bank‟s recommendation. It is predicted that developing countries (Africa inclusive), will convert 120 million hectares of natural habitats to farmland to meet demand for food by 2050 (WWF Global, 2014). By implication, the more people work on the environment by cultivation, the more irreversible impact we cause. Against this background, it remains a contested issue whether Sub Sahara Africa should expand its agricultural land. On a comparative level, the African continent has more land than Asia Developing regions as well as the Latin American and Caribbean. Yet these regions devout much of their land to permanent crops and are arable land. Most land in Africa however, is devoted to pastoral agriculture, and less to permanent crops and are not arable land. Coupled to this, there is less processing of agricultural produce across Sub Sahara Africa rendering their produce remain at raw material level which implies less cost when it comes to trade. There is not much value added to agricultural produce. Agriculture impacts the environment, given the variety of agricultural methods used across the continent. Agricultural 4



activities are in competition with aquaculture, and in some areas unsustainable practices are responsible for increased desertification and pose serious potential to in balance in the ecosystem. This perhaps justifies arguments on whether Africa should change its focus from agriculture to mining and energy in order to drive its economy and meet the aspirations of its people-enhanced welfare. At the same time, there is awareness that stopping agricultural activities is not a solution because it would be tantamount to worsening the situations of millions of world population who are hungry‟ in fact it will be a massive disaster that would wipe the entire human race. Who would survive without food? It is significant to note that there is unavoidable impact to environment as long as human action is undertaken. Deliberate political decisions are relevant in this case and it points to social policy as we will see later. The second sector we can briefly consider on the economic front is mining and energy. Africa as a whole has a range of natural resources and Sub Saharan Africa is host to most of these resources including mineral and oil, among others. Nigeria boasts of oil deposits, while republic of Congo boasts of oil and Iron ore and Zambia mainly produces copper. If we take the case of Democratic Republic of Congo, we find that the country is rich outside our imagination in terms of diamonds, gold, and cultan reserves. The Washington Post in its Diamond Hest publication (2011) gives a succinct description of the Democratic Republic of Congo by indicating that „in terms of its untapped mineral wealth, the DRC is one of the richest countries in the world. Its soil is reputed to contain every mineral listed on the periodic table and these minerals are found in concentrations high enough to make metal analysts weep.‟ Currently, and considering the history of working and exploitation of these resources across Africa reveals immense pollution and irreversible impact on the environment. This is evident in Nigeria where the history of oil exploitation in Ogoni community (an oil-rich area) is like the history of oil pollution as the commencement of oil exploration and exploitation was followed almost immediately with the three major causes of oil pollution namely, the impact as seen in the 5



seismic survey, gas flaring and oil spills (Pyagbara 2007). It was evident that oil exploitation affected the environment and continues to do so in the present day. This is not an isolated case as exploitation for oil and other minerals like copper, is a practice going on around countries endowed with these resources in Africa. Consequently, the environment receives impacts of the industrial and domestic activities associated with production. I think a significant question that may have been answered in some literature is who owns or who controls these resources; or a more business oriented question is of who has injected some capital into the resources of Sub Saharan Africa as a business venture? Another difficult answer to this question is, because most businesses are registered in one name and the owner is the otherde jure, the de facto aspects remain hidden and unknown in many cases. It is also justified to ask what has been done with consideration to environmental sustainability. One could expect that the resources belong to local people, or the nation as a whole which might be expected to exploit them. However, with political ideologies, globalization and its sisterliberal policies has led to private ownership of resources through mining or exploration giants in the global business arena. Where the state owns and controls such resources, it is partial and in most cases has been compromised to suit the business giants. In Democratic Republic of Congo, private companies are running some of the country‟s mining ventures. The extent of redistribution of gains from these ventures to local people still remains a contested issue. Some of the business entities in the African natural resource business operate through a complex web of joints with local companies where necessary. If this is the case, the nature of partnerships is of more benefit to the multinational cooperation than the local entity. Various reasons could explain this situation. Certainly, this cooperation create employment for local people though in most countries it is a contested issue regarding the nature of employment and wages, as some mining cooperation‟s in countries like Zambia have come under criticism for offering what was termed as slave-wages. 6



As indicated earlier, the phenomena and business situation is not free of effecting the ecological system and human environment. In countries were mining is taking place in the SubSaharan Africa, there is lack of clear assessment on past and future effects of the mining activities. Where such assessment is available, it is largely ignored for political and business reasons. What remains is the accumulating effects on the environment and human welfare. Amidst this situation, social policy is a significant player to contribute to efforts in improving social welfare and the environment in which people live. Social policy: The absentee-land lord The subject of environmental sustainability and social welfare has a global character. I will therefore address it from domestic and global social policy because the function of social policy at these levels remains the same in many respects. Bob Deacon (2007), a renowned Global Social Policy expert argued that globalisation has affected the way social policy is to be understood and analysed. Indeed it has. As countries exploit resources, they tend to utilize not only locally based knowledge but also technology that may not be available in domestic countries. Globalisation has increased foreign direct investments in most of Sub Sahara Africa today. In addition, the business targets for the produce of natural resource are multilateral cooperation‟s and advanced economies which all operate within the globalization sphere. From this perspective, social policy has the function for redistribution, regulation and promoting social rights. Redistribution Redistribution is essential in altering market activity outcome to benefit all people. In this case, activities such as mining and excavation, and other related human undertakings are expected to produce a particular outcome which at least in principle should trickle down to all. As regards regional institutions, Africa as a whole has not seen much redistribution taking place from „lead multilateral development finance‟ the African Development Bank.

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The Bank provides lends to its member countries with funds raised in international markets at relatively favorable terms. It provides loans, guarantees, equity and quasi‐equity, and risk management products. However, given the huge demand on social welfare and other competing needs the services are not enough. In addition, the continent is yet to test the profitability and redistributive function of the African Monetary Fund whose creation was approved at the African Union summit in 2014. As economies of the countries vary, so will their shares in the fund. But it is not clear at this point how most vulnerable countries will benefit from the initiative. Africa remains a recipient of redistributed donor funds despite the continent boasting of enormous natural resources. Bretton wood institutions and the multiple United Nation organization agencies continue to channel more resources to programmes and activities in Sub Saharan Africa in the form of development assistance. Since 1970s, and also in 1992 developed countries committed to give 0.7% of the Gross National Income per annum for development assistance. However, these countries have failed to meet the target. There could be various reasons to this failure of commitment but will not be covered in this article. My argument is that given the enormous natural resources in Sub Saharan Africa, countries in this region need to reconsider its social policy and administration systems. The region lacks a strong and transparent system that links economic and human activity to social policy and the goal of attaining the quality of life for all people. Redistribution through aid and debt cancellations received from supranational institutions has not adequately helped Sub Saharan African to focus energies on effective social policy delivery and equity share as a whole. If anything, debt cancellation initiatives like the Heavily Indebted Poor Countries (HIPC) have not produced favorable outcome. It is evident in Zambia where pursuing World Bank and IMF-led reforms resulted in the increase in the poverty gap and the weakening of the country‟s social services. The country is still borrowing today. If the country had a viable redistribution in social policy and administration systems, 8



the situation would have been different in many respects. Sub Saharan Africa faces the need to change its course and discourse as far as redistribution is concerned from reliance on transnational actors to harnessing domestic and regional resources with social policy playing a significant role. This is far from isolating Africa from global integration and globalization as a whole. Instead, it has potential to foster the role of Africa in global governance and particularly in trade terms that has a significant influence in the global market. Sub Saharan Africa should draw lessons from other countries in natural resources management and environmental sustainability. Lessons can be drawn from countries in Northern Europe which at the working of social policy, have redistributed gains from natural resources thereby creating the viable welfare states that they are today. Norway is such an example as its natural resource revenues have benefited the public. The history of the oil and gas industry in Norway is a saga of wise political decisions, world-class industrial development and huge value creation (Norskolje&gass, 2010). These decisions were carried on in social policy. As a result of this, Norway has implemented a transparent system for redistributing its wealth and the country´s success in fending off the resource curse and has saved about US$800 billion in sovereign wealth-funds, commonly referred to as oil fund, Oljefondet. This is the fund meant for future generations. Equatorial Guinea, an oil-rich country in Africa has attempted to create a sovereign wealth-fund which receives about 0.5 percent of oil revenues. However, there are fears that no information on the fund's rules, assets, transactions, or investments has been published (Natural Resource Governance Institute, 2014). This leaves the question of redistribution hanging in balance. Social policy in Sub Sahara Africa has become an absenteeland lord. As a result, redistribution has been affected. One such mechanism of redistribution is taxation, where states obtain revenue from economic activities taking place. Taxation from firms operating in natural resource sector such as oil and mining, as well as carbon tax when needed is insufficient to compensate the environment and significantly contribute to welfare needs of the 9



population. In most of African countries there are still concerns that business entities continue to evade tax. They pay tax, it is far insignificant. We can look at copper, which sometimes hits high commodity price. By implication, this leads to increase in earnings both in real and absolute terms for companies. Do these companies in countries like Zambia pay much tax as a share of the business boom? No. Profits are returned to shareholders as special dividends. Every time government proposes to increase tax, such companies claim to be making a lose and even threaten to close operations. Meanwhile, their activity continues with irreparable impact on the environment creating local people as losers. This is an offshoot of effects of economic liberalism. This being the case, (Gomory & Baumol 2004) provide a useful insight in what should be done. At the very least . . . those who stand to benefit from the process [of globalization] should be expected to agree to provide systematic and substantial assistance to the victims, presumably via government channels, and supported liberally by the wealthier communities. If that is not acceptable politically, there is surely little that can be said convincingly in support of a contention that the suffering of the victims will be justified by the promised future benefits to their descendants. (Gomory & Baumol 2004). It is currently a critical debate in Zambia as some sectors of civil society organizations have consistently petitioned government to implement windfall tax. One argument for windfall tax is that the government will be assured to gain more revenue from copper mining activities in case of price boom and would therefore be able to redistribute the funds to other needy sectors of economy and public service provision. Copper is not a renewable resource. Therefore if the country has not benefitted meaningfully and redistributed the gains of the resource to its citizens, one expectation is that there will be more environmental, economic and social problems in the years and generations to come which will consequently make it impossible for the country to be free from debt-dependency on supranational institutions.

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