Due to the large sums of money involved, subcontracting carries risks. Procurement deals are less visible and more numerous than the high-profile processes used to award exploration and production rights, and they are harder for government regulators, the media and civil society to scrutinize. They are therefore a common node for corruption.
Alexander Malden, Toyin Akinniyi, Zira John Quaghe
This level of immediate national press coverage reaffirms the importance of payments to government data to citizens in resource-rich countries, and how it is increasingly informing national debates on countries’ natural resources management.
Political parties can help ensure that their country gets the best deal for the extraction of its resources, manages revenues for the long-term best interests of citizens and avoids the resource curse.
In a report, Rio Tinto was accused of “illegitimately lowering” its withholding taxes paid to the government of Mongolia in relation to the Oyu Tolgoi copper mine. Rio allegedly did this by using a double tax agreement between Mongolia and the Netherlands, in addition to which it negotiated an even lower rate of withholding tax in its amended mining agreement in 2011. This piece reviews Rio’s tax arrangements.
Unlike in the resource-rich country in the film Black Panther, much of Africa’s mining sector is currently dominated by foreign direct investment; its raw minerals are often exported with limited local participation in the sector and tax revenues are eroded.
Carole Nakhle, the founder and CEO of Crystol Energy and a new NRGI board member, spoke with NRGI before International Women’s Day about the growth of AccessWIE, “anemic” female participation in the extractives sector, and the roles NRGI can play in addressing gender inequality and women’s empowerment.
Tolonen’s research focuses on how natural resources affect labor markets, criminal behavior, health and social welfare, and, in particular, gender inequality. Tolonen also focuses on the economics of gender in the household and child health in developing countries.