Natural resource governance
The considerable abundance of natural resources in developing countries can make an important contribution towards boosting the economy and achieving greater social equality. The potential public revenue from oil in sub-Saharan Africa alone could meet more than 250 per cent of the costs required to attain the Millennium Development Goals, for example.
However, the opposite is often the case: natural resources have a negative impact on a country’s governance. A lack of transparency in awarding concessions for natural resources, a lack of accountability for public revenue and its use, as well as ineffective regulation are examples of irresponsible management of natural resources. Poverty and conflict gain ground in place of sustainable development. Policy advice on managing natural resources – known as natural resource governance – addresses this development challenge.
Natural resource governance refers to the manner in which governments manage and regulate the use of natural resources, but also how they distribute public revenue and the environmental and social costs of extracting natural resources.
On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) we support governments and involve civil society and the private sector in developing and implementing political structures that create a conducive environment for managing natural resources responsibly. By doing so, we help promote sustainable development and political stability in partner countries endowed with natural resources.