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;

  • Dialogue in the extractive industries as a conflict prevention mechanism.

  • Revenue sharing mechanisms and its effect on conflict.

  • How the extractive industries can work towards achieving the SDGs.

  • 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). 

Recent work:

  • In November, 2015 UNDP organised a workshop in Oslo on Extractive Industries and Conflict Prevention. Our aim was to deepen 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 was attended by representatives from key UN agencies engaged in this work, IFIs and other multilateral organisations, governments, industry bodies, company representatives, think tanks, research organisations, and NGOs.

  • In September 2016 UNDP OGC together with Natural Resource Governance institute, launched a report on Natural Resource Revenue Sharing. The report will guide policymakers in establishing natural resource revenue sharing regimes or reforming existing ones. Earlier in June, OGC also organised an informal roundtable discussion among key Norwegian stakeholders around this report.

  • In June 2016 UNDP together with NUPI held a lunch-seminar on how global activism affected public debate around conflict minerals in DRC.

For more information on our work click here