Extractive Industries for Sustainable Development
Many countries have financed their development through resource extraction. However, there are risks related to natural resource wealth. These include volatile economic growth; limited job creation; violent conflicts; corruption; environmental degradation; gender violence; and spread of HIV and AIDS among communities impacted by extraction activities. Such negative outcomes of resource extraction, however, are not inevitable. They can be tackled through effective strategies, legal frameworks and policies.
Recognizing the far-reaching impacts of extractive activities, UNDP has adopted a new Strategy for Supporting Sustainable and Equitable Management of the Extractive Industries. The Strategy builds on UNDP’s past and on-going projects in the sector, implemented in diverse political, social and cultural contexts.
Our Strategy adopts a broad approach to the governance of extractive industries. When laying the foundations, UNDP supports countries to strengthen their legal and institutional frameworks to negotiate and enforce contracts in transparent and accountable ways; and to ensure that exploration and extraction operations are environmentally and socially sustainable. The Strategy supports countries to manage revenues transparently and deal with volatilities in these revenues. Moreover, it supports countries to put these funds to good use, by investing in economic diversification, as well as in human, social, physical and financial capital.
UNDP works to enhance the participation of civil society, women’s organisations, indigenous peoples and other affected groups in the decision-making processes to ensure effective governance of the extractive sector.
The Strategy also provides a framework for working with the private sector to put in place environmental and social safeguards; achieve local content regulations and integrate their corporate social responsibility objectives with countries’ national development plans.
UNDP’s mission is to ensure that natural wealth is used to improve people’s lives. We will continue to work with governments, the private sector, civil society, academia, local communities and other affected groups to realise this mission.
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