Inclusive development, oil extraction and climate change: a multilevel analysis of Kenya

ABSTRACT

There has been considerable research on North–South issues on climate change; however, little work has been done on how the recent discovery of oil in some developing countries could affect North–South relations, the prospects for development for the South, climate change and local socio-environmental issues. Using the theory of inclusive development, the concept of the Right to Development, and their relation to stranded assets, this paper addresses the question: what does inclusive development imply at the national and global level in dealing with oil extraction in the context of climate change? Based on a literature review and a layered case study of Kenya, this paper concludes that (a) Kenyans argue that Kenya has a right to extract and use oil resources and that rich countries should reduce their extraction and use; (b) such a claim could be integrated in an appropriate emissions trading scheme; and that (c) Kenya should also account for the national and local socioecological aspects to reduce potential local conflict, yet the conditions favoring inclusive development are not yet established. However, such an argument may also lead to perverse results. If addressing climate change requires phasing out fossil fuels, this argument may lead to stranded assets in both developed and developing countries, and may ironically leave developing countries poorer off as stranded assets are possibly more expensive than having stranded resources.

KEYWORDS:

• Climate change
• emission trading
• inclusive development
• oil extraction
• Principle of common but differentiated responsibilities
• Right to Development
• stranded assets
• stranded resources

Acknowledgements

We acknowledge the help from Professor Benedict. M. Mutua, Associate Professor, Egerton University, Nakuru, Kenya and Alemun Pastoralists Empowerment Initiative, Lokichar, Kenya.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. The policy documents included focused on climate change (‘National Climate Change Action Plan’ (NCCAP) (GOK 2013a), ‘National Climate Change Response Strategy’ (NCCRS) (GOK 2010b)); oil development (‘Petroleum (Exploration and Production) Act’ (GOK 1986)); and the development policy for 2008–2030 (‘Kenya Vision 2030: a globally competitive and prosperous Kenya’ (GOK 2007)) and medium-term plans (GOK 2008, 2013b)). New policies are being drafted (e.g. the Climate Bill, the National Climate Change Framework Policy, the Oil Bill and the Energy Bill). The new Constitution of Kenya (GOK 2010a) was included since it significantly changes governance structures (to a system of devolved government) and processes (increased public participation).

2. The research locations in Lokichar are the main village (22), Nakukulas village (31) and the internally displaced people community (12). Most interviews were held in Nakukulas village, a pastoralist settlement located directly next to the first oil rig.

3. Through the provision of public goods, civil amenities, and public infrastructure (Sachs 2004, p. 169; Gupta et al. 2014).

4. By investing in infrastructure that expands the access of the poor to the market and increases their productive assets, that is, investing in social inclusion and human capacity (Rauniyar & Kanbur 2010, p. 38).

5. Nonetheless, a cap for the county level will be set at two times the amount the countries have been allocated by the Commission for Revenue Allocation, implying that if a county would normally receive two billion Kenyan Shillings it can only receive two times that amount from the oil revenues.