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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OECD Development Centre

The complex and specific corruption challenges related to the extraction and trade of natural resources and the management of its associated revenue flows are a source of growing concern across developing, emerging and developed countries. As a result, corruption in the extractive industries has been included in the Action Plans of the G20 Anti-Corruption Working Group. Recognising the need to step-up anti-corruption efforts, world leaders gathered at the Anti-Corruption Summit in May 2016 and explicitly identified the extractive industries as being among the sectors that are particularly vulnerable to corruption, undermining economic growth, threatening security and harming the poor.


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