GE announced that it has secured an order to supply gas power generation equipment for West Africa Energy’s 300 megawatt (MW) combined-cycle power project in Cap des Biches, Dakar, Senegal.

Upon completion, the Cap des Biches plant will be the biggest power plant in the country and is expected to generate nearly 25% of the power consumed, providing the equivalent electricity needed to power up to 500,000 Senegalese homes.

The plant is expected to begin operations in phases starting in 2022, enhancing universal access to electricity and supporting the Senegalese Government’s target to increase its generation capacity with a greater utilization of natural gas and renewables.

“We are pleased to collaborate with GE to deliver reliable and efficient gas turbines to Senegal, aligned with the country’s strategy on gas to power under the leadership of President Macky Sall to develop the energy sector that will be critical for the development of strategic sectors of the economy, while actively driving localization initiatives,” said Samuel Sarr, CEO of West African Energy. “Once completed, the project will also go a long way in reducing the cost of electricity in the country,” he added.

GE will supply two 9E.03 gas turbines, one STF-A200 steam turbine, three A39 generators, two Heat Recovery Steam Generators (HRSG) and additional balance of plant equipment as part of the project scope.

Cap des Biches combined-cycle gas turbine power plant is being developed by Senegal’s West African Energy and will be built by Turkish engineering, procurement, and construction (EPC) company, Calik Enerji. 

Choosing a health insurance plan can be tricky if you don’t know the differences between the various types. Each one comes with unique pros and cons, costs, and other factors that’ll ultimately affect your decision.

An HMO and a PPO plan are the most popular kinds, but there are also HDHPs, POS’s, and EPOs. In this guide, we’ll explain the top two in more detail. Once you know what to expect, you’ll be able to decide what’s better for your lifestyle, your pocket, and your needs.

What to Consider

When you’re comparing health plan options, there are a few factors to keep in mind. After all, it’s a personal decision that’ll impact every aspect of your life.

Your Health

If you’re immunocompromised or suffer from a chronic condition, you’ll likely need more comprehensive cover. If not, you might prefer an option that’s cheaper but has fewer benefits.

Your Family’s Health

Similarly, you’ll need to consider your family’s health requirements. That’ll help you decide whether a group or individual plan is best for your loved ones.

Finances

Apart from your monthly premium, the healthcare plan you choose will also come with deductibles and co-payments. Extra expenses could derail your budget, so it’s vital to consider all financial aspects.

Generally, a higher monthly payment means lower out-of-pocket costs and vice versa. If you’re opting for a plan on the Health Insurance Marketplace, then it’s also worth finding out if you qualify for any premium tax credits.

Flexibility

If you need to see a specialist regularly, then you’ll probably want a plan that doesn’t require a referral each time. Similarly, you might have your own doctor and other health care providers. Do they accept the kind of insurance you have?

What Is an HMO Plan?

A health maintenance organization (HMO) plan makes up more than half of all marketplace options, but only around 19% of employee healthcare offerings. Generally, it comes with lower premiums than a PPO, but a smaller network of hospitals and medical professionals.

You’ll also have to choose a primary care physician (PCP) who coordinates your care. This means you’ll need a referral to see a specialist. If you already have a doctor, it’s a good idea to check whether they’re included in your network.

If not, then start by exploring your options and choosing a PCP carefully. They’ll be responsible for all your medical needs, so it’s crucial to find one that ticks all the boxes.

An HMO plan doesn’t usually allow you to seek medical care outside of your network or without a referral. If you do, then you’ll be liable to pay the expenses yourself. However, you’ll still be covered in an emergency.

HMOs typically come with deductibles, which is the amount you pay before your coverage kicks in. However, it’s usually lower than other plans.

An HMO might be the right choice, if:

• Your doctor or specialists are already a part of the network
• You seldom need referrals
• You’re content with the limitations

What Is a PPO Plan?

A preferred provider organization (PPO) plan ordinarily has much higher premiums and deductibles than an HMO. However, it offers more flexibility when it comes to choosing healthcare providers.

Around 49% of the workforce uses an employer-based PPO. Individual plans are significantly lower, at about 15%.

A PPO plan allows you to use both in and out of network providers, although the latter will still cost you more. You can also see a specialist without getting a referral.

However, expensive services might require pre-authorization. This means you’ll first need to get approval from your insurance provider.

PPOs also include an out-of-pocket maximum for in-network treatment or care. The amount varies, so it’s prudent to check this when you’re looking for a plan.

This kind of healthcare policy is less restrictive than an HMO but more expensive. While you’ll have a much more extensive list of available providers, your cover will only kick in once the deductible limit is reached.

It’s up to you to decide whether the costs justify the flexibility or if you’ll still get sufficient coverage with an HMO plan that has lower premiums.

PPOs could be an ideal choice if:

• You prefer the freedom to choose healthcare providers from a wider network
• You see specialists regularly and don’t want a referral every time
• You’d rather pay a higher premium to get more flexibility

Choose the Plan That’s Right for You

Health insurance can seem confusing at first, but you can refine your options once you understand the fundamentals. HMO and PPO plans are two of the most common types, although they differ significantly.

Before making a decision, consider your health, your family’s medical needs, finances, and the kind of flexibility you want. An HMO plan might be cheaper, but it comes with restrictions. Conversely, a PPO costs more but gives you greater freedom.

Do your homework, compare options, and find out what in-network providers are close by. This will help you choose the plan that suits your needs, your budget, and your lifestyle.

The death of a Ghanaian domestic worker in Lebanon has brought the Kafala system into the spotlight for all the wrong reasons.

The Kafala system is an exploitative system used to monitor migrant laborers, working primarily in the construction and domestic sectors in the Gulf cooperation council member states and a few neighboring countries like Bahrain, Jordan, Kuwait, Lebanon, Qatar, Oman, Saudi Arabia, and the United Arab Emirates.

The system gives the employer total authority over the employes. They have the power over the visa and legality of the employee by the basis of being the employee’s in-country sponsor. In most cases, this has led to employers confiscating the passports of their employees and abusing them. The kafala system leaves the employees vulnerable to their employers who provide them with accommodation food and sponsor for their visas.

the domestic worker’s salaries are withheld during the first months of employment as a way of repaying the employer for the visa and flight tickets. This means the employee works for food and shelter in their first month. Most migrant workers in the region are found in Africa and Asia. It is evident that the conditions under which the employees work and live in are extremely similar to slavery. They are being subjected to physical abuse, having no autonomy over movements within the country of and sometimes work without being paid.

Faustina Tay, a Ghanaian domestic worker’s death is just one of many deaths that occur to the domestic workers tied down in the Kafala system. Her body was found between 3 – 4 am on the 14th of March 2020 under her employer’s fourth storey room home in Beirut’s southern suburbs. Fewer than 24 hours earlier, Tay had been sending messages to an activist group for domestic workers under the kafala system, about the abuse she was suffering at the hands of her Lebanese employers. Her death was ruled out by investigating authorities as suicide. Tay’s story is not unique but just reveals the lengths the authorities are willing to go to sweep the deaths of migrant workers under the kafala system under the carpet. According to the country’s intelligence agency, two domestic workers die every week, but the judiciary is never seen to serve justice for these deaths. Despite the messages and pictures, Tay sent along with over 40 minutes of voice messages documenting her abuse the police will not investigate the death or the alleged abuse.

Authorities with the requisite power to investigate and serve justice for the abusive system are nonchalant and do not want to decisively tackle the matter.

Amnesty International has termed the system as “inherently abusive” because if the employer chooses to terminate the contract, even in cases of abuse, the visa sponsorship is immediately revoked, turning the migrant workers into illegal aliens, and leaving them at the risk of being arrest and deportation.

The late Faustina Tay used to run a small noodle business in Accra (Ghana). Her messages to her family and the activist group shows that she regretted her decision.

If the kafala system is not abolished it will leave multiple people who are unaware of the evils within it vulnerable to be victims of the same. Africans sign up and are recruited in hope of making an honest living but instead find themselves reduced in value and self-worth. Faustina’s story tells a story that is way too familiar to African history. She was abused even by her employer’s children and occasionally had her phone confiscated.

States like Bahrain have repealed the Kafala system giving the migrant workers a bit more autonomy because their visas are sponsored by the Labour Market Regulation Authority. Although there are still practical aspects that still require attention it is a step in the right direction.

The kafala system should be abolished because it is clearly modern-day slavery and constantly subjects African migrant workers to an experience that should be left in a sad part in the history of mankind.

East Africa’s plan to have a single currency appears to be over. Business Insider reports that the plan has collapsed after “key deadlines have been missed.” Full compliance is still five years away, but it seems a foregone conclusion that it will not be met.

The biggest miss 

Among these missed deadlines, one stands out. That is the inability of the East Africa Community (EAC) to establish the East African Monetary Institute (EAMI). The EAMI is the most important institution in this plan and should have been set up in 2015. It would be the region’s central bank and would have been in charge of developing East Africa’s own currency.

Salvaging the plan will hinge on finally setting up the EAMI. “I think the first thing to do is to set up the East African Monetary Institute then we take it from there in terms of making the necessary progress,” said Adan Mohamed, Kenya’s Cabinet Secretary in-charge of EAC Affairs. But the establishment of the EAMI might be moot, given the 2024 final deadline. Even with the EAMI set up, member countries will still have to meet the following macroeconomic benchmarks:

a. Debt-to-gross domestic product (GDP) ratio of 50%

b. Fiscal deficit that is 3% of the GDP

c. Overall inflation of 8%

d. Forex reserves equivalent to 4.5 months of import cover

Working on a revised timeline 

In November 2013, the EAC Monetary Union was formally launched. This union laid out a 10-year plan to establish a single currency for the region. But the EAC has fallen way behind schedule. Nevertheless, member states are not giving up. Aware of the looming 2024 deadline, the East African heads of state have agreed to restart discussions on reworking the timeline. Doing so will buy time for the EAC Monetary Union to establish the EAMI, and for the member states to meet the aforementioned macroeconomic benchmarks. Kenya, for instance, began tightening its deficit in 2015. The move was initiated by Kenyan Finance Minister Henry Rotich, and aims to cut the country’s budget deficit to stabilize the Kenyan shilling. Other East African countries might have to do the same to meet the above benchmarks, if and when the EAMI finally gets established.

A single currency equals opportunity 

The continuing effort of the EAC Monetary Union is the right thing to do given the benefits of having a single currency. A good example of this is the European Union’s adoption of the euro. The EU’s website details that the euro was created because it was advantageous compared to countries having their own currencies. Among the benefits of having a single currency are stable prices for consumers, economic stability and growth, and more opportunities for businesses.

Having a single currency also ensures seamless integration with the world’s financial markets. Evidence of this is the euro’s status as one of the world’s leading trade and investment currencies. FXCM lists the euro as one of the most widely traded currencies with strong parings with the USD and GPD. This underscores how the euro is enjoying a leading role in global financial markets, alongside the U.S. dollar and the UK pound. That is not to say that an East African currency will automatically be level with any of those three. But actually having one currency for the region is a start.

A sliver of hope

East Africa’s plan of having a single currency may have collapsed. But it is not completely dead. It can still be saved, and reworking the timeline is a step in the right direction. If anything East Africa can take heart in the experience of West Africa, whose own plan for a single currency was postponed numerous times. But now the region is on the verge of having the ECO, the West African equivalent of the euro. It was supposed to be rolled out in 2000, but the launch kept getting pushed back.

The same seems to be happening to East Africa’s own single currency plan. But if the EAC remains persistent, their plan to have an East African currency might still materialize, though not in 2024 as originally planned.

According to a new report by Oxfam, the world’s wealthiest 1 percent continues to control more wealth than most others.

The anti-poverty charity organization, Oxfam, reported that economic inequality is getting more comprehensive than ever, and women are at the receiving end.

Oxfam claims that the world’s 22 richest men, for instance, own more wealth than all 325 million women in Africa combined. This report further goes to emphasize the level of poverty in Africa today and the hardship women in particular face daily.

“When 22 men have more wealth than all the women in Africa combined, it’s clear that our economy is just plain sexist,” Danny Sriskandarajah, chief executive at Oxfam Great Britain said in conjunction with the report’s publication this week.

Published in advance of the World Economic Forum in Davos, Switzerland, where world leaders will meet this week, Oxfam’s report highlighted how women are “chronically undervalued” for unpaid care work, Sriskandarajah said.

“If world leaders meeting this week are serious about reducing poverty and inequality, they urgently need to invest in care and other public services that make life easier for those with care responsibilities, and tackle discrimination holding back women and girls,” he said.

Women risk been trapped in poverty with little time to get an education, earn a decent living or have a say in how society is run, Sriskandarajah added.

Men not only own more than 50 percent more wealth than women, but they also control government decision making. On average, women make up only 18 percent of cabinet ministers globally and 24 percent of parliamentarians.

Oxfam’s data showed that more women are left out of the workforce during their peak productive and reproductive ages, worsening the income gap between men and women.

The problem of inequality affects more than just women as more than half of the world is trying to survive on $5.50 a day or less, according to data from the World Bank.

“Many people are just one hospital bill or failed harvest away from destitution,” Oxfam said in its report.

The world’s total number of 2,153 billionaires had more wealth than the poorest 4.6 billion people, which is more than half the global population, Oxfam’s data showed.

The pressure on carers will grow in the coming decade as the world faces not only an ageing population but also the adverse effects of climate change, such as requiring women to travel further to get clean water for their households, said Oxfam.

Fairer tax systems that tighten and close loopholes should be prioritized by governments, which should invest in national care systems so that the burden of care does not fall on unpaid work by women, the charity urged.

“[Our] research has shown that providing access to an improved water source could save African women significant time, for example in parts of Zimbabwe up to four hours of work a day, or two months a year,” Oxfam said.

“Investments in water and sanitation, electricity, childcare and public healthcare could free up women’s time and improve their quality of life.”

In the United States, the term “big oil companies” is likely to be taken to mean the major private international oil companies, largely based in Europe or America. However, while some of those companies are indeed among the largest in the world, by many important measures, a majority of the largest oil companies are state-owned, national oil companies. By conventional definitions, national oil companies hold the majority of petroleum reserves and produce the majority of the world’s supply of crude oil. Since national oil companies generally hold exclusive rights to exploration and development of petroleum resources within the home country, they also can decide on the degree to which they require participation by private companies in those activities.

The national oil companies typically do not operate strictly on the basis of market principles. Because of their close ties to the national government, in many cases their objectives might include wealth re-distribution, jobs creation, general economic development, economic and energy security, and vertical integration. Although these objectives might be desirable from the point of view of the nation’s government, they are unlikely to be equivalent to the maximization of shareholder value, the stated objective of the private international oil companies. Differing objectives might be considered to be important only if they lead to different characteristics and outcomes, which is the case for the national oil companies.

Many of these companies have been found to be inefficient, with relatively low investment rates. They tend to exploit oil reserves for short-term gain, possibly damaging oil fields, reducing the longer term production potential. Some also have limited access to international capital markets because of poor business practices and a lack of transparency in their business deals. High oil prices since late 2003 have masked the effect of some of these characteristics in the flow of oil revenues. However, if the price of oil moderates, the potential supply constraint related to the inefficient operations of the national oil companies may be a destabilizing factor in the world oil market.

A wide variety of policy directions can be taken to mitigate the potential challenge posed by the dominance of national oil companies. Demand management policy can reduce the U.S. dependence on imports. The U.S. government can use its political influence to try to encourage nations not to use national oil companies to forward the aims of the government, but to follow commercial practices to maximize revenue flows. An expanded supply of oil could be encouraged as a condition for trade and aid agreements in some cases. Finally, promoting international trade and recognized commercial practices could be encouraged.

The Market Position of National Oil Companies Rankings of companies can be accomplished using a number of different criteria. In the oil industry, based as it is on current production to generate current earnings and on reserve positions to ensure the future viability of the enterprise, several standards need to be applied to assess the evolving nature of the companies in the industry. Additionally, investment, in the form of exploration and development expenditures, serves as a link between the present and the future, ensuring an ongoing continuity for the company so that reserves are not unduly depleted by current activities. Consumers also have an interest in the structure and size of firms and their activities if the current production level, as well as the proved reserve position of the companies or industry, is declining. If current production declines in the face of growing world demand, it is likely that prices will rise, and the possibility of physical shortages will be heightened. If exploration and development expenditures are reduced because of problems encountered by some firms in accessing international capital markets, the relative scarcity of oil might increase, leading to higher future prices, as well as potentially restricted supply.

Objectives and Characteristics of National Oil Companies

The reserve and production positions of the national oil companies might be little cause for concern if the companies operated much like the private international oil companies, and state ownership was only a matter of how the stock shares of the company were held. However, it is likely that the objectives for many national oil companies, as well as the characteristics of their operations, differ from companies in the private sector of the oil industry.

Objectives

Privately held companies have the goal of maximizing shareholder value. The management of the company may accomplish that goal through organizing production so that a profit is made in the current time frame as well as in the future.

They also might make investment decisions to take advantage of opportunities to raise the company’s rate of return. They also have the motivation to achieve productive efficiency to hold down costs to enhance the profitability of any given revenue level. This activity is thought to benefit consumers by assuring that physical shortages are avoided and that the good is available at the lowest price consistent with demand and supply factors. In the oil industry, maximization of shareholder value is taken to mean that the value of oil resources should be maximized through managing production, exploration, and development activities to assure a functioning market. To ensure the long-term viability of the company, reserve replacement is necessary.

For the company to grow, it must have the ability to expand production and sales to meet demand growth in newly developing economies as well as in developed areas. Technical efficiency in all parts of the supply chain leads to cost minimization as well as improvements in product performance and environmental integrity. These values represent the average gasoline prices over the period 2002 to 2004 and compare to an average price of $2.10 in the United States for the same period. The Changing Role of National Oil Companies in International Energy Markets, Introduction and Summary Conclusions, Presentation at the James A. Baker III Institute for Public Policy, Rice University, March 1, 2007. 8 Ibid. National oil companies do not necessarily follow the shareholder value maximization model alone. Since these companies are totally, or majority, owned by their national governments, maximizing the value of the company might have to compete with other, governmentally mandated objectives.

Although all national oil companies respond to their national governments to one degree or another, the amount of influence varies widely. The national oil companies of more developed nations, Statoil in Norway, and Petronas in Malaysia, for example, tend to follow a more commercially oriented strategy than the Nigerian National Petroleum Company, and Petroleos de Venezuela, where government objectives largely supplant commercial objectives, and the companies are under pressure to maximize the flow of funds to the national treasuries.

Wealth Distribution

National oil companies may be involved in redistributing the oil wealth of the nation to the society in general. This redistribution can be accomplished through fuel subsidies, employment policies, and social welfare programs among other programs. Fuel subsidies are common, reducing the price of gasoline in Venezuela to $0.11 per gallon, $0.21 per gallon in Iran, and $0.64 per gallon in Saudi Arabia.

In contrast, gasoline had an average price of $5.77 in Norway, one of the higher observed price levels in the world. While subsidized fuel prices reduce energy prices to the general population, enhance industrial and transportation resources, and protect the domestic economy from the damaging effects of volatile world petroleum prices, the downside is that they are very expensive in terms of lost potential revenues for the national oil company. The artificially low price encourages demand growth, corruption, inefficient use of fuels, and even arbitrage-based smuggling schemes. The expanded use of fuels domestically leads to reduced exports and tightens supply in world markets, leading to higher prices in the oil-importing countries. Examples of subsidy programs with these effects include those observed in Iran, Nigeria, and Indonesia among others.

Economic Development

National oil companies are also used by their governments as tools in the overall process of economic development. In some nations, the petroleum industry is the first large economic sector opened to the world economy. As such, the petroleum industry may be the first to introduce concepts of international investment contract and property law, as well as accepted accounting and financial standards, all necessary for economic development to proceed. The industry may serve as a conduit for technology transfers to the larger economy. Local content rules may be imposed to ensure the development of ancillary service businesses to spread development dollars.

The national oil company may also be required to supply subsidized fuels to industries targeted in the nations’ development plans. An example of the development responsibilities of a national oil company is in Kazakhstan, where KMG has clearly stated its aims. These objectives include integrating Kazakhstan into the world economy and ensuring that KMG’s growth and development translates into more general economic growth in the nation. National oil companies can also be used by their national governments as a tool to achieve foreign policy goals, leading to direct alliances as well as national oil company to national oil company ties that can pave the way to political relationships. Oil is a strategic commodity in the world economy, and its production and use can foster strategic relationships.

Energy Security

Broadly based energy security is among the objectives of the national oil companies. Security on the demand side means not allowing one consumer to become critical to the national oil company. For example, PDVSA has recently tried to direct its oil sales away from the United States in the hope of reducing U.S. economic influence, and as a way to develop other consuming markets for Venezuelan crude oil. However, in some cases technological factors make this strategy difficult. A long-standing relationship between an oil exporter and importer may lead to the investment in more-or-less specialized facilities that facilitate the use of the exporting nation’s oil. In the United States-Venezuela case, Venezuela produces relatively heavy crude oils, especially from the Orinoco basin projects.

The United States has refineries designed to use this crude oil. As Venezuela seeks to diversify its customer base, it must find locations with refinery capacity suited to its crude oil. In other cases, energy security objectives for national oil companies are defined in terms of security of supply. Supply security objectives in the well-functioning world oil market are usually defined in terms of the diversity of producers and the security of oil supply lanes. For some countries and their national oil companies, oil supply security means the ownership, or exclusive rights to, desired supplies of oil. Some analysts have identified China as a nation following this type of strategy. The attempted purchase of Unocal, the U.S. based oil and natural gas Company, by CNOOC in 2006 likely was of interest to the Chinese mainly to gain access to natural gas fields in Southeast Asia, controlled by Unocal.

Vertical Integration

Although national oil companies in oil-producing nations have their roots in upstream operations, some are striving to achieve vertical integration. On an economic level, vertical integration allows the national oil company to capture the value added from producing and selling petroleum products. PDVSA’s acquisition of Citgo in the United States provided refining as well as retail marketing outlets for Venezuelan oil. In addition, demand security was enhanced through gaining a position in the large U.S. gasoline market. In other cases, national oil companies might be able to gain access to markets otherwise not available to them. The national oil companies may also be able to achieve a greater degree of diversification and mitigation of risk through vertical integration. Oil prices have tended to be volatile. Profits may accrue to different parts of the supply chain at different times and during various market conditions. Vertical integration may enhance the ability of national oil companies to be profitable in changing markets.

Characteristics of National Oil Companies

Because national oil companies may be motivated by different objectives than private oil companies, their performance characteristics are also likely to be different. This might be of little consequence to consuming countries except that, in a tight oil market, the national oil companies may become an impediment to the smooth functioning of the world oil market in the future. Productive efficiency is normally defined as maximizing the output associated with any given level of inputs. Measuring productivity in the oil industry, compared to a typical manufacturing industry, is difficult because geological factors enter into the process on the input side and may not be controllable by management in the normal sense. However, comparative econometric productivity studies within the oil industry do exist.

Investment

Because of the demands of the government and national treasuries, national oil companies may have a shorter time horizon for operational decisions than the international oil companies. The national oil companies may have an undue focus on earning current revenues and maximizing current production.

This could result in mis-management of existing fields, which allows a smaller recovery percentage than theoretically possible, and a neglect of exploration and development. In the longer term, damage to the world oil market could be enhanced by the dominant position the national oil companies have in terms of potential reserve access.

For consumers, the national oil companies’ focus on current production may work to keep the world price of oil relatively lower in the near term. However, if the national oil companies ignore investment in exploration and development, it could mean higher oil prices in the future. Some estimates of the needs for oil industry investment total $16 trillion over 30 years.15 If the national oil companies do not undertake investment on this scale, and if they and their governments exclude the international oil companies from developing reserves in their countries, the world oil market could be supply-constrained in the future, and prices might be higher than if higher investment took place.

Access to Capital

The International Energy Agency has estimated that over the period 2001 to 2030, the world will need to invest $16 trillion in energy infrastructure to meet the needs of projected demand. The oil sector is expected to account for $3 trillion of the total. To accomplish this level of investment, it is likely that the industry will need to draw on many sources of financial capital. Since 2004, the international oil companies have had record-setting profit performances. This financial strength allows them substantial latitude in accessing financial resources. Because their own cash reserves have risen, internal financing has become a viable option. Because of their strong balance sheet and income statements, it is likely that they can access world capital markets for financing on relatively favorable terms.

National oil companies are in a weaker position with respect to the capital markets. Their relative inefficiency in turning oil into revenues as discussed in this report makes them less likely to receive favorable terms from international capital markets. Their obligations to the national treasury to finance domestic welfare programs, along with the below market price sale of their products at home, make it less likely that they will have access to enough retained internal earnings to finance optimal levels of exploration and development of oil resources.

To the extent that such companies experience a shortage of financial capital, it could result in higher prices and the potential for physical shortages in the future. If national oil companies do gain wide-spread access to the world financial markets, this might not only spur upstream capital investment but might also provide benefits to the companies and their interface with the global market. Compliance with international accounting standards, more business transparency, as well as certain basic standards of corporate responsibility might result from the national oil companies’ exposure to international financial markets.

Policy Analysis

Recognition of national oil companies’ growing dominance of the world oil market has led some experts to view this as an energy security issue. The growing strength of the national oil companies implies, at least in a relative sense, the diminished importance of the private international oil companies. This dynamic could transform the reaction of the market to demand and supply signals. Since a major thread of current policy toward oil is “let the market take care of it,” a change in the way the market works might call for significant adjustments in the policies of oil-consuming nations. Some of the policy options presented below have been extensively debated in the past as features of broadly based energy strategies, while others are controversial and would likely be difficult to implement. Others, such as the creation of a U.S. national oil company are extremely unlikely to be considered while the world oil market continues to function as a viable market.

Demand-Based Policy

The success of many economic policy measures designed to alter market outcomes requires consideration of likely actions by both those who demand the product as well as those who supply it. As a result, if oil-importing countries believe that the growing importance of national oil companies are a potential threat to their ability to gain access to desired supplies, not only should importers seek to change the behavior of national oil companies, but they might also change their own energy strategies. The key elements in such a demand-side policy are well known. They include diversifying the supply base, so that potential political problems are less likely to result in economic damage through reduced oil supply. In addition, conservation that reduces demand, or at least reduces the growth in demand, perhaps through taxes on imported oil or petroleum products, for example, might serve to reduce the potential influence that oil-based actions have on the domestic economy.

Supply-Based Policy

Oil importing nations might also use their political influence to try to encourage the national oil companies and their governments to alter their behaviors. The companies might be encouraged to improve their efficiency and respond to market signals more like privately owned firms. If the national oil companies find a need to access international capital markets more regularly, this result might be achieved as a natural result of exposure to the requirements of lenders. On a more political level, governments might try to encourage the governments of national oil companies to reduce their intervention in the operational decisions of the companies. This might be difficult to achieve in countries like Venezuela under the Chavez government, but progress likely can be made in more democratic environments. The clearest example might be Statoil and Norway, which operates largely on market principles.

Conclusion

As the world oil market changes its structure to include the growing importance of national oil companies, recognition of the likely consequences of this trend is an important first step in helping to secure oil supply. If the national oil companies hold the title to ever greater portions of actual and potential oil reserves, production, and exploration and development activities, and if they are relatively less capable of utilizing those resources, oil supplies are likely to be relatively constrained in the future. Given projections of demand growth of about 50% by 2030, constrained supply might imply sharply rising oil prices.

Venezuela provides an early example of how the political influence of a government can affect the supply of oil, disturb existing market partnerships, both with companies and with the United States, and forward the interests of U.S. competitors. The private international oil companies are unlikely to be able to counter national oil companies to preserve their own profit-seeking interests as well as those of the U.S. market, which requires adequate physical supply at moderate prices. Various policy directions are available to counter the effects of national oil companies, but the recognition that a potential problem exists, as well as a long-term commitment to any chosen policy direction, will likely be needed to minimize the threat to U.S. oil market stability and energy security.

The Treasury set the fiscal deficit at 570.2 billion shillings ($5.54 billion), or 8.7 percent of GDP, for the financial year starting last month.

NAIROBI – Kenyan Finance Minister Henry Rotich on Tuesday promised further steps, including cutting the budget deficit, to stabilise the currency after a 12 percent fall against the dollar so far this year.

The weakness in the Kenyan shilling threatens to feed inflation, and has forced policymakers to raise lending rates by 300 basis points since June.

“We will continue to do more including tightening the fiscal deficit to ensure stability in our currency,” Rotich told Reuters.

Patrick Njoroge, the governor of the central bank, last month called for prudence in fiscal policy to ensure stability in the currency, inflation and interest rates.

Dealers blame the shilling’s weakness on a combination of factors including dollar strength, a surge in demand for imports and weakness in the tourism sector – a key source of foreign currency – after a series of deadly attacks by al Shabaab militants from neighbouring Somalia.

Rotich said the government planned to review personal income tax laws to boost revenue collection. “This is the next stage of our tax reform initiative and we plan to present a bill to parliament by end of this fiscal year.”

The Treasury set the fiscal deficit at 570.2 billion shillings ($5.54 billion), or 8.7 percent of GDP, for the financial year starting last month.

Rotich said the bulk of this gap was covered by funds already secured from China for the construction of a modern railway linking the port of Mombasa to Nairobi.

“This deficit includes investments in mega-infrastructure projects such as Standard Gauge Railway (SGR), power generation and in security modernisation,” the minister said.

“Excluding expenditures related to the SGR, the overall deficit would decline to equivalent to 6.5 percent of GDP.”

The projects, Rotich said, were partly responsible for creating more than 800,000 jobs in Kenya last year and they would help the government hit its growth forecast of 6.5-7 percent for this year.

Farming, which makes up nearly a quarter of the economy, was expected to do better than last year due to good rains in the second quarter, he said, adding tourism would improve in the second half after some key source markets like Britain lifted security-related travel warnings.

Kenya would borrow more funds from international capital markets, the minister said, rejecting claims it could struggle because of an expected U.S. rate hike that has caused investor flight from riskier assets.

“The economy is growing at high rates and provides higher yields than those on the developed markets. We do not expect any difficulty to raise funds in international markets,” he said.

Kenya successfully issued a debut Eurobond last year and Rotich has said it may return to international debt markets with other instruments like an Islamic law-compliant sukuk bond.

$1 = 102.9000 Kenyan shillings

Mountain Gorillas, hippos and various bird species are some of the most common tourist attractions in Rwanda’s Volcanoes Park. The well protected Agashya family of mountain Gorillas frolick in dense undergrowth at the Virunga National park.

The park covers approximately790, 000 hectares of forest in the three countries of Rwanda, Uganda the Democratic Republic of the Congo (DRC).

According to figures from Rwanda Development Board (RDB), last year tourism sector generated US$253 million. The population in the vicinity of the national park has over the years closely worked together to conserve it. But stray animals that destroy crops pose a major threat to the communities.

Recently residents living around the park, in Rwanda and DRC, built 2 kilometres parameter of stones and a trench to deter stray buffaloes and other wild animals which destroy crops whenever they come out of the park.

“It is a way of ensuring that residents do not lose their harvests as a result of wildlife,” says Sam Mwandha, the Executive Secretary of Greater Virunga Trans-boundary Collaboration (GVTC).

A mechanism to coordinate joint conservation efforts in the park is underway under which the government engages other partners both at the national and regional levels.

Under the arrangement, a team of conservation managers, including park wardens, is constantly in the field, assessing and conducting patrols. The team also shares basic intelligence information.

Rica Rwigamba, the Head of Tourism at RDB, says the institution has established a regional monitoring body in collaboration with the Uganda Wild Life Authority and the Congolese Institute for Conservation.

“There is already an existing agreement which stipulates specific areas of collaboration where a team holds regular meetings to share ideas on how to address challenges regarding conservation,” she said.

According to Rwigamba, some of the existing benefits include the revenue sharing policy where each of the countries has equal access to collected revenue depending on the origin of the wild animals.