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 regulation and management of operations

OECD Development Centre

This chapter identifies corruption risks in the regulation and management of operations. It is divided into four main categories: i) corruption in the procurement of goods and services; ii) regulatory capture or violation; iii) corruption in the conduct of daily operations, and iv) corruption in the acquisition or selling of shares or concessions. It further elaborates on mitigation measures that home and host governments and companies can take to address those risks.


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