The World Bank Group initiated a wide consultation and research process to review the role of the Bank’s in the extractive sector. The conclusions and recommendations are published in a Final Report called “Striking a Better Balance”:
According to the report, three conditions are to be implemented to allow extractive industries to contribute to the poverty reduction and sustainable development of a country:
- A pro-poor public and corporate governance, including proactive planning and management to maximize poverty alleviation through sustainable development;
- Much more effective social and environmental policies;
- Respect for human rights.
To achieve better governance, it requires:
- Companies to engage in consent processes with communities and groups directly affected by projects in order to obtain their free prior and informed consent;
- Revenue sharing with local communities;
- The use of poverty indicators that are monitored systematically;
- The incorporation of public health components in all extractive industry projects;
- NGOs to build the capacities of affected communities;
- The settling up of independent grievance mechanisms.
To read an abstract of the report and the World Bank’s Management Response, please visit this page.
Striking a better balance: the Extractive Industries Review
Click on the pictures below to open the various parts of the report.