Natural resources can be a major source of revenue and opportunities for a country to foster its sustainable economic and social development and achieve internationally agreed development goals, including the MDG’s. Mobilization of domestic revenue from resource exploitation can also enable a country to invest in its infrastructural network and basic services such as healthcare and education. However, without the right set of policies, accountability frameworks and governance systems to manage and use these resources, the outcome could lead to rent-seeking and conflict. For instance, widespread price transfer, tax avoidance, bribery and patronage in the natural resource sector have the potential to undermine democracy and the rights of citizens and host communities including indigenous peoples. Ensuring that there is increased transparency and accountability throughout the value chain natural resource management reduces the risks of corruption and pave the way for equitable and sustainable use of these resources.
Transparency and accountability in natural resource management