The Bank Group’s work in the extractives sector focuses on three main pillars that support the overall goals of ending extreme poverty and boosting shared prosperity: 1) governance and domestic resource mobilization; 2) inclusive growth, jobs and infrastructure; and 3) environmental and social sustainability.
Governance and Domestic Resource Mobilization: The Bank Group works with governments to support the development of fiscal policies for oil, gas, and mining regimes and capacity building for effective revenue administration. This starts with supporting capacity building for contract negotiation, and includes regulatory frameworks, tax and royalty administration as well as revenue management.
To support transparent revenue management, the Bank supports the implementation of the Extractive Industries Transparency Initiative (EITI) through technical assistance to countries working to publish and verify company payments and government revenues from oil, gas, and mining activities. A total of 51 countries are now implementing this standard, of which 31 are compliant. For over 10 years the EITI Multi-Donor Trust Fund, managed by the World Bank, provided technical assistance to governments implementing EITI requirements. Moving forward, World Bank support to EITI will be administered through the EGPS Multi-Donor Trust.
Inclusive Growth, Jobs, and Infrastructure: Local communities stand to benefit more if they participate actively in the extractive industry’s operations. This provides a chance to leverage the industry’s infrastructure, job creation, and small business opportunities to help enable sustainable development over time.
The Bank is working to promote dialogue on Local Content Policy as an area where local procurement and human resources can encourage economic diversification. Where direct employment can often be low due to mechanization, the Bank focuses its efforts on workers skill development to help increase local employment in higher income positions.
We also help governments integrate extractive industry-driven infrastructure development into long-term economic planning and identify policy instruments conducive to shared use infrastructure development.
Environmental and Social Sustainability: We work with governments to develop strategic Environmental and Social Assessments to anticipate sector-wide impacts and to incorporate environmental and social priorities into extractive industries’ policies and regulatory arrangements. One specific area of focus is ending routine gas flaring at oil production sites around the world as a way to increase energy access, improve efficiency, and mitigate climate change. The Global Gas Flaring Reduction Partnership (GGFR) works with industry and governments around the world to harness otherwise wasted natural gas, and to put it to productive use rather than flaring it into the atmosphere.
Last Updated: Sep 27,2016