Corruption in the Extractive Value Chain

Typology of Risks, Mitigation Measures and Incentives

image of Corruption in the Extractive Value Chain

One case of transnational corruption out of five occurs in the extractive sector according to the 2014 OECD Foreign Bribery Report. In this area, corruption has become increasingly complex and sophisticated affecting each stage of the extractive value chain with potential huge revenue losses for the public coffers. This report is intended to help policy makers, law enforcement officials and stakeholders strengthen prevention efforts at both the public and private levels, through improved understanding and enhanced awareness of corruption risk and mechanisms. It will help better tailoring responses to evolving corruption patterns and effectively countering adaptive strategies. The report also offers options to put a cost on corruption to make it less attractive at both the public and private levels.

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Corruption risks in the decision to extract

OECD Development Centre

This chapter identifies corruption risks arising in the decision to extract, the patterns of corruption and parties involved. It further provides recommended mitigation measures for home, host governments, and donors. In this phase governments enjoy the opportunity to undertake a cost-benefit analysis weighing the costs, benefits and risks over the expected timeframe of extraction and beyond. www.resourcegovernance.org/training/resource_center/backgrounders/value-chain

It is in this phase that governments strike a balance between possible alternative use of lands and associated restrictions, preservation of the environment, protection of cultural sites and the rights of indigenous peoples and local communities.


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