UNDP Around the world

Governance of extractive industries in crisis and transition contexts

Revenues from extractive industries has the potential to lift citizens of developing countries out of poverty, through job-creation and boosting government budgets for social development through improved education, health services and infrastructure. At the same time, this industry can have harmful side-effects. Resource rich countries have a bigger risk for conflict, both when it comes to civil war as well as smaller, more localised conflicts. Extractive industry operations can lead to environmental degradation, a threat to livelihoods, displacement, economic mismanagement or corruption. In a conflict setting, dependence on extractive industries can increase a country’s conflict vulnerability, cause conflict or deepen existing conflict.

UNDP has a mandate to research how extractive industries affect conflict in a context of crisis and transition, and how policies enabling good governance of the industry can strengthen resilience and sustainable development.

We are currently focusing on: (i) dialogue in the extractive industries as a conflict prevention mechanism; (ii) revenue sharing mechanisms and its effect on conflict.; (iii) how the extractive industries can work towards achieving the SDGs; and (iv) the link between extractive industries and human rights.

Simultaneously, we are also working towards increasing knowledge and dialogue through strengthening the GOXI platform (sharing in governance of the extractive industries). 


Past events on governance of extractive industries

Soft Launch - Report: Natural Resources Revenue Sharing

An event was held at the Oslo Governance Centre on 15 March, 2016, to mark the soft launch of the UNDP /Natural Resource Governance Institute (NRGI) report on Natural Resource Revenue Sharing. The report will guide policymakers in establishing natural resource revenue sharing regimes or reforming existing ones. 

Andrew Bauer, Senior Economic Analyst at NRGI, and Sofi Halling, Policy Analyst at the Oslo Governance Centre, presented some of the findings from the upcoming report. Among other things, the report provides 10 recommendations for designing and implementing efficient, fair and stable resource revenue sharing systems. Poorly designed revenue sharing systems can exacerbate regional inequalities and lead to violent conflicts.

The report can be found HERE. Its official launch was in September, 2016.


Lunch-seminar: Does global activism affect public debate around conflict minerals? The case of Congo

In June 2016, UNDP, together with NUPI, held a lunch-seminar on how global activism affected public debate around conflict minerals in DRC. More information about the seminar can be found HERE.


_MG_6265 (2)Photo: Eivind Oskarson (OGC)

Workshop: Extractive Industries and Conflict Prevention

OGC along with UNDP’s Conflict Prevention Team and the Sustainable Development cluster hosted a full day workshop on Extractive Industries and Conflict Prevention on 17 November, 2015 in Oslo with the aim of deepening a shared understanding, exploring synergies and identifying areas for action on how to enhance the role of the extractive industries in promoting peaceful and inclusive societies.

The event attended by representatives from key UN agencies engaged in this work, IFIs and other multilateral organisations, governments, industry bodies, company representatives, think tanks and research organisations, and NGOs explored how extractives could be either a blessing or a curse, boosting development or causing conflict, depending on how such industries are managed. The day saw several country examples and initiatives that deepened the knowledge and understanding of participants on this issue including from Norway (Oil for Development Programme) and the Latin American context and country case of Peru. The event was followed online by participants from 18 countries and reaction captured on social media. Following this event, there was also a full day internal UNDP reflection attended by UNDP representatives  from HQ, Regional Hubs and Country Offices on shaping and refining UNDP’s offer in this area. The full event recording for 17 November is available on OGC's YouTube channel here.

Some key resources from the workshop:

Environmental grievances along the Extractive Industries Value Chain (Dag Seierstad, Programme Management Officer, Environmental Cooperation for Peacebuilding, Extractive resources and Environmental Change, United Nations Environment Programme).

Country perspective (Rebecca Arias, Director, Panama Regional Hub, UNDP Latin-America and the Caribbean).

Institutionalizing dialogue (Luis Francisco Thais, Gerente Proyecto Prevencion de Conflictos con el Uso de Recursos Naturales, UNDP Peru).

Revenue and benefit sharing arrangements as a conflict prevention tool
 (Siri Rustad, Senior Researcher, Peace Research Institute Oslo (PRIO)). 

Transparent and effective management of revenues
 (Pablo Valverde, Country Manager for the Middle East and North Africa, Extractive Industries Transparency Initiative (EITI)).

The role of women in preventing extractive industry conflicts
 (Caroline Ngonze, Programme Specialist, ACP-EU Development Minerals Programme, UNDP).
Global Compact’s work with the Business for Peace (Tiina Mylly, Manager Business for Peace, UN Global Compact).

How Companies are affected by the cost of conflict (Daniel Franks Programme Manager, ACP-EU Development Minerals Programme, UNDP).

Oil for Development (Ingunn Kroksnes, Senior Advisor, Oil for Development Section, Norad).