Extractives for Development (E4D) – risks and opportunities
This project aims to help policymakers deal with the risks and opportunities in oil & gas and mining for development, poverty reduction, and the environment.
The extractive industries provide substantial government revenues in many low-income and middle-income countries, but efforts to diversify economies have been disappointing. Moreover, there are major revenue shortfalls due to ineffective regulation, under-reporting by producers, poor transparency, and badly designed tax systems. Incentives are still badly titled towards extraction, and away from protecting renewable resources such as biodiversity, forests and water as well as ending greenhouse gas emissions. The COVID-19 pandemic has also caused an unprecedented shock that has exposed the vulnerability of economies dependent on extractive revenues, and the project examines how to manage the revenue risks.
This project builds on the Extractives for Development (E4D) project undertaken by UNU-WIDER from 2014-18. The new project aims to further enhance the links established to senior policy makers, international organizations and the oil, gas and mining industries themselves to share lessons across regions, and to identify opportunities as well as risks (and ways of mitigating those risks), and to chart the future of the global extractives industries and the consequences for both low and middle income countries.
The project will deliver research papers, to be published in the WIDER working paper series. The first set of papers focus on identifying critical issues for the sector, in light of the impact of the COVID-19 pandemic as well as climate change. A monograph will be finalized in 2020, for publication in 2021, building on a book published by Oxford University Press from the previous UNU-WIDER project.
Key questions
How to ensure that the extractives sector contributes to poverty reduction?
How to ensure that the extractive sector has a minimal environmental impact?
How to ensure that revenues for development from extractives are maximized?
Watch this space
All papers, events, briefs, blog posts, and opportunities to engage relating to the project will be available on this webpage.
The research will address SDG 16: Peace, Justice and Strong Institutions. In addition, it will support the attainment of SDG 7 (Affordable and clean energy), SDG 12 (Responsible consumption and production, as well as SDG 13 (Climate action).
This paper argues for a change in government attitudes to their extractive industries: as enclaves useful primarily as revenue sources. This is too narrow a perspective: it fails to recognize the broader economic linkages that are invariably possible...
This paper analyses the risks facing resource-dependent countries. These include: (i) economic mismanagement (the ‘resource curse’); (ii) political mismanagement; (iii) environmental damage (climate change and the destruction of natural capital). It...
The extractives industries are highly controversial but remain vitally important in much of the developing world. This paper considers their role in reducing energy poverty and discusses scenarios for the future of the global markets for oil, gas...
UNU-WIDER and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) host the sevent researchers’ seminar on Extractive industries: Taxation and revenues. This online seminar, themed Financial Benefit Sharing in the...
This study proposes a new measure of Fiscal Dependence on Extractive revenues: FDE. The FDE estimates, simply, the extent to which extractive-producing countries can fund day-to-day government spending with non-extractive revenues.By focusing...
Tony Addison, UNU-WIDER Non-Resident Senior Research Fellow and Extractives for Development (E4D) – risks and opportunities project lead, joins a dialogue event The extractive industries in the developing world: dilemmas and opportunities on 19...
Illicit gold flows constitute a major development challenge for governments and a social responsibility challenge for the jewellery industry, which accounts for the majority of global gold demand. This paper highlights aspects of gold supply chains...
by
Michael Danquah, Albert Kwame Osei-Owusu, Edgar Towa
March 2023
In Africa, there is a distressing correlation between debt and the need to export raw materials. A new paradigm is needed in which African countries...
The recently concluded COP27 in Sharm el-Sheikh had one important outcome for developing countries: the announcement of a loss and damage fund. This...
by
Magnus Ericsson, Anton Löf, Olof Löf
March 2023
The green energy transition is projected to cause an increase in metal demand. Will this demand lead to the opening of deep-seabed mining? As of now...
The aims of this paper are twofold. It firstly identifies and discusses the extent to which public revenues from natural resources are adequately captured in existing cross-country revenue databases, before exploring the extent to which such data can...
In this study, we develop an empirical framework that allows us to trace out a time path of metal prices. This framework shows that unpredictable shifts in demand, extraction costs and discovery of reserves, make estimation of the slope of this...
Most research on illicit financial flows (IFFs) has focused on illicit outflows from developing countries and the role of non-state actors in generating IFFs. Less attention has been paid to processes and interfaces through which IFFs enter formal...