A system thinking approach to addressing implementation challenges of local content policy in resource-rich countries.

The study espoused a multi-strategy approach-encompassing system thinking (ST) tool, which uses causal loop diagram (CLD) and mixed-method methodology to address local content policy (LCP) challenges of infrastructure, human resource capacity (HRC), technology and finance in the Ghanaian oil industry. ST considered the challenges as a 'system', thereby providing a comprehensive approach to identifying and analysing the interconnections among the variables affecting the challenges of LCP implementation. Underpinning ST and CLD is the concept of feedback, which allows complex issues to be viewed as an interconnected set of circular relationships. This therefore helps to provide a holistic understanding of an issue from different perspectives. The CLD was used to model the challenges of Local Content Development (and to provide sub-models of Infrastructure, HRC, Finance, and Technology with their attendant strategies). These models were then validated qualitatively. Additionally, a literature review and questionnaire were used to extract LCP lessons from two perspectives: developing and developed countries. The study of the comparator countries found that LCP implementation follows a worldwide trend: employment, procurement, training and technology transfer, and financial support to local firms. The Ghanaian LCP focuses on 'low hanging fruits', which are identified as being overly ambitious; they represent unachievable targets that are not suited to Ghana's developmental state, comparative advantage and lack of the prerequisite factors for effective implementation. These prerequisites include independent state institutions, adequate infrastructure, and credit facilities for local companies and suppliers. The lack of access to finance for local companies can be attributed to the lack of dedicated funding and the 'one-man company' syndrome, which is often not well structured, classifying them as high-risk for loans. The study uncovered two critical issues affecting local capacity building: policy coordination and harmonisation among stakeholders, and sustainable funding. The policy coordination should be threefold: the regulator (and related government agencies), academia and industry. These issues have been exacerbated by pervasive political interference in the administrative and operational functions of state oil and gas (O&G) institutions. This persistent interference has led to rent-seeking behaviour and the exploitation of the national oil company a 'cash cow' by the central government. An implementation strategy is developed based on political leadership, institutional strengthening, policy coordination and harmonisation, and a national development plan

A comparative analysis of local content policies in the North Sea and the Gulf of Guinea regions.

Since their introduction in the North Sea, most resource-rich countries in Africa are introducing or reinforcing local content policies (LCPs) and regulations, to propel socio-economic development. Local content is now a prerequisite for granting an exploration licence to international oil companies (IOCs) and suppliers in the Gulf of Guinea region (GGR). This paper analyses and compares factors of success and impediments in LCPs from two perspectives: the North Sea (Norway, UK, and Denmark), and the Gulf of Guinea (Angola, Nigeria, Ghana, Liberia and Equatorial Guinea). Through this, we glean policy lessons for the Gulf of Guinea countries. The study finds that the policy implementation in the GGR is constrained by inadequate infrastructure, industrial base and supplier base, technical and financial capacity of domestic firms and weak regulatory institutions - among other things. Also, the LCP is overly ambitious and prescriptive, ignoring the GGR's actual state of industrial development. To engineer resource-based development in the GGR, these countries must move beyond their preoccupation with local content regulations and instead address the above challenges in order to facilitate the development of better linkages

Local content implementation enhancement through infrastructure development in Ghana’s oil and gas industry.

Since the discovery in 2007 of oil and gas in commercial quantities, Ghana has made some progress in passing several policies - such as local content and participation framework policies. This is ostensibly to stem the effects of "resource curse", whereby countries with a greater quantity of natural resources are underdeveloped in comparison to those countries with fewer natural resources. Putting it differently, the country's local content policy is meant to stimulate industry development by indigenizing the needs of the petroleum industry. However, this aim is constrained by the country's infrastructure deficit - about $2.5 billion each year - limiting the budget for enabling the growth of indigenous companies. This study proposes policy options for enhancing local content implementation through infrastructure development. To this end, the policy implementations in Angola, Brazil and Norway are reviewed, using a purposively sampled set of research participants for interviewing. The study finds that regulatory institutions and the legal framework should be strengthened in order to attract private investment in infrastructure development. In addition, a special provision should be inserted in future petroleum contracts, so as to support the infrastructure fund - both through infrastructure-for-oil trade and also through encouraging voluntary contributions from oil companies in exchange for reduced taxes. The findings contribute to the existing literature in local content development, moving the discussion away from training, local employment, and goods and services targets, and instead moving towards development of the country's local infrastructure in order to ensure the sustainable development of indigenous and foreign businesses

A system thinking approach to human resource development in the oil industry.

Prerequisite for the development of production linkages in the oil and gas (O&G) industry is the existence of a skilled and experienced workforce. Resource-rich countries, however, are either in short supply or lack of the requisite local capacity. This paper adopts system thinking (ST) methodology to provide a comprehensive approach in identifying, analysing and understanding the interconnections and interrelationship among the variables affecting the challenge of human resource development (HRD) in the oil industry. The concept of feedback embedded in ST allows complex issues to be viewed as an interconnected set of circular relationship rather than the linear cause-and-effect. Consequently, ST tool of causal loop diagram (CLD) aids in visualising the understanding of HRD factors, their relationships in the causal factors and the strategies for sustainable development of domestic skills, know-how and local capacity. Policies for developing human resource in the oil and gas industry are recommended to policymakers and stakeholders

Impacts and Risk Management of COVID-19 Pandemic on Real Estate Supply Chain

Industry experts internationally have raised concerns regarding the significant risk posed to the real estate sector by the unprecedented global pandemic of Covid-19. The influence of Covid-19 has been swift, and with emerging wide-ranging consequences. The stay-at-home-policy has stagnated real estate and other economic activities. Many lenders, buyers and estate agents are evaluating the threats and opportunities in their operations. Developers face stoppages resulting from the impact and inherent risks of the stay-at-home policies on the built environment, and real estate chain. Return on investments initiated, but not completed due to the pandemic negative effect has resulted in a financial crisis. Similarly, there are fears that income streams, such as rental incomes, and mortgage payments, which are already being affected negatively in the short-term may worsen in the long-term due to economic recession. The purpose of the study, therefore, is to identify any COVID-19 pandemic impact, its mitigation for the tenant, and across the supply chain within the real estate sector in the United Kingdom. The study is based on a qualitative descriptive research design. The required data has been collected mainly through an extensive review of the available secondary sources. Occupiers’ Sentiment Index and past recessionary financial performance were used to provide a wide-ranging insight into crisis effects on the macroeconomy of the property market. Consequently, two procedural approaches are utilised; firstly, the economic recovery scenario V, U, W and L shapes, are analysed to determine the potential recovery pattern of supply chains across the real estate sector. Secondly, the use of a legal context to mitigate the pandemic risk across the sector. The findings reveal an emerging dynamic trend, rooted in contract clause revamping, as suggestive of a mitigation approach by the industry. The significance of the study provides a robust platform on which a long-term response to any future unprecedented pandemic within the real estate-built environment can be delivered

Impacts and risk management of COVID-19 pandemic on real estate supply chain.

Industry experts internationally have raised concerns regarding the significant risk posed to the real estate sector by the unprecedented global pandemic of Covid-19. The influence of Covid-19 has been swift, and with emerging wide-ranging consequences. The stay-at-home-policy has stagnated real estate and other economic activities. Many lenders, buyers and estate agents are evaluating the threats and opportunities in their operations. Developers face stoppages resulting from the impact and inherent risks of the stay-at-home policies on the built environment, and real estate chain. Return on investments initiated, but not completed due to the pandemic negative effect has resulted in a financial crisis. Similarly, there are fears that income streams, such as rental incomes, and mortgage payments, which are already being affected negatively in the short-term may worsen in the long-term due to economic recession. The purpose of the study, therefore, is to identify any COVID-19 pandemic impact, its mitigation for the tenant, and across the supply chain within the real estate sector in the United Kingdom. The study is based on a qualitative descriptive research design. The required data has been collected mainly through an extensive review of the available secondary sources. Occupiers’ Sentiment Index and past recessionary financial performance were used to provide a wide-ranging insight into crisis effects on the macroeconomy of the property market. Consequently, two procedural approaches are utilised; firstly, the economic recovery scenario V, U, W and L shapes, are analysed to determine the potential recovery pattern of supply chains across the real estate sector. Secondly, the use of a legal context to mitigate the pandemic risk across the sector. The findings reveal an emerging dynamic trend, rooted in contract clause revamping, as suggestive of a mitigation approach by the industry. The significance of the study provides a robust platform on which a long-term response to any future unprecedented pandemic within the real estate-built environment can be delivered

Infrastructure development in the West African extractive industry: a system thinking approach.

The extractive industry in the West African region contributes significantly to the socio-economic development of the host communities and the wider economies of resource-rich countries. However, the spill-over effects to the domestic suppliers and the wider economy are hampered by several factors key among is infrastructure development (ID). This study employs multi-strategy approach comprising system thinking tool of causal loop diagram (CLD) to identify key variables and high leverage points underpinning and affecting ID to enhance insight and understanding and interrelationships in the phenomenon under consideration. The literature on the case countries, Ghana and Nigeria, is used to map CLD for infrastructure validated via semi-structured interviews. The CLD demonstrates that strategic investment in infrastructure will boost economic growth, mitigate the negative secondary impacts of the extractive industry and quell social upheaval in host communities. Policy options are recommended for improving infrastructure development