What examples are there of good practice in mitigating the risk of corruption in the extractives sector (oil, gas and mining) in resource-rich developed and emerging economies, which could be considered by developing countries or which have an impact on reducing corruption in developing countries? We are particularly interested in examples from Argentina, Brazil, India, Indonesia, Mexico, Russia, South Africa, Australia, Canada, China, Germany, Saudi Arabia, Turkey, US and the UK.
1. Corruption risks in the extractives sector 2. Award of contracts and licenses 3. Monitoring of operations 4. Collection of revenues 5. Revenue spending 6. References
With large volumes of revenue at stake, the extractives sector is often associated with poor governance and corruption. Corruption risks can occur at every step of the value chain, from awarding of contracts and licenses to determining how to spend revenues. Many governments and companies in resource-rich developed and emerging economies have therefore taken steps to combat corruption and ensure revenues are adequately used.
Practices include (a) ensuring fair awarding procedures through criminalisation of bribery, clear and transparent awarding procedures, contract transparency; (b) mechanisms for monitoring operations (also at state-owned enterprises) that include audits, parliamentary oversight, civil society and media monitoring, as well as corporate transparency and monitoring; (c) systems for collecting revenues in a transparent and accountable manner through sound fiscal regimes and transparent reporting; and (d) determining accountable ways to manage, invest and spend revenues such as through sovereign wealth funds and strategic planning processes.