Extractive industries, development and the role of donors

Extractive Industries (EI) explore, find, extract, process and market sub-soil assets – oil, gas and mined minerals. EI represent a large and growing activity in many less-developed countries. But natural resource wealth does not always lead to sustainable and inclusive growth. This guide sets out the recent rise in importance of EI to less-developed countries. It provides a framework for thinking about (i) the socio-economic impacts of these industries and (ii) the relationship between EI, host country public policies and donor activities.

The guide:

provides an overview of recent trends in mineral commodity markets, the growing significance of EI to many less-developed countries, and what EI might mean for ‘aid graduation’
sets out frameworks for thinking about how sub-soil assets are transformed into above-the-ground assets that can foster inclusive growth, the governance of those transformations, and the intersection of industry and public policy interests
presents the industry perspective. It describes the activities across the project life cycle, whilst distinguishing between the mining and oil and gas sectors
discusses EI from government’s perspective, highlighting the chain of policy decisions that need to be managed effectively to maximise developmental impacts of EI
provides an overview of recent donor initiatives, suggestions for improving collaboration between donors and the private sector, and lessons learned