Improving Public Sector Capacity and Governance

Good Governance: A building block for resource-led poverty alleviation

Good governance, including an accountable public sector, is key to the sustainable development and effective use of natural resources.

We collaborate with our partners to build public sector capacity so that resource development is guided by such building blocks of good governance as transparent and effective legislation, robust regulatory frameworks, environmental standards and strong health and safety regimes.

When managed responsibly, resource industries can drive economic growth, generate jobs and be an important source of revenue for developing countries. Not only does good governance provide an ethical framework for development, it also provides predictability for responsible investors.

Extractive industries (minerals, metals, oil and gas) hold economic potential for more than 50 developing countries with a combined population of 3.5 billion people. The demand for natural resources continues to grow to meet the needs of a rising global middle class providing millions of people with goods and services. In addition, minerals have an important role to play in the transition to a clean energy future. Metals such as copper, aluminum, lithium, rare earth minerals and metallurgical coal, are all required to build the solar panels, wind turbines, electric vehicles and other innovations that will help us address climate change and move to a low-carbon economy.

When managed responsibly, resource industries can drive sustainable economic growth, generate jobs and be an important source of revenue for developing countries.

We understand there are both risks and benefits associated with extractive industries. In the absence of good governance, resource development can contribute to corruption, environmental damage and conflict. Women, children and Indigenous people are often disproportionately affected by the negative impacts of resource development. Good governance can address this and build shared value. Active engagement of governments, industry and communities helps to ensure that resource development contributes to positive economic, social and environmental outcomes.

Good governance for natural resource development requires:

  • Strong, accountable local and national governments
  • Robust legal frameworks and regulatory regimes
  • Transparent processes
  • Effective community participation
  • Responsible and engaged industry and investors
  • Accessible technical expertise
  • Current knowledge of resources and environment

Example projects:
Supporting the Ministry of Mines (SUMM) Ethiopia
Strengthening the Governance of the Extractive Sector in West Africa

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