The purpose of this paper is to provide evidence on the types of
policies that have been put in place by developing and developed
countries to manage the ecological costs and maximise the socio-economic
benefits of extractive industries (EI). Through this research it is
hoped to provide a better understanding of the various pros and cons of
different policies based on real experience, particularly with regard to
growth and poverty reduction.
The focus is on host country regulatory initiatives, meaning regulations
from the jurisdiction within which extraction is taking place rather
than those implemented to regulate companies working abroad. The types
of institution considered are both ‘hard’ (e.g. legislation) and ‘soft’
(e.g. public-private partnerships).
After the introduction, Section 2 briefly describes the potential
ecological and socio-economic impacts of EI. Section 3 discusses how
weak political institutions, coupled with a dependence on natural
resources, can lead to sub-optimal results for national economic
development and the reduction of poverty. Section 4 provides a rationale
and policy examples for each of six focus areas. The conclusion in
Section 5 reiterates the range of policy options available to developing
countries and suggests a range of opportunities for developing country
governments to proactively engage with extractives firms. Finally,
Sections 6 and 7 provide recommendations for further reading and a
Bloomfield, M.J.; Denison, M. Environmental management for extractives. EPS-PEAKS, UK (2012) 31 pp.