NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
Resource-rich Latin American countries did experience high rates of economic growth and diminished poverty and inequality during the boom years. On the surface, this would appear to strengthen arguments that extractive industries are key to progress, especially in resource-rich areas, despite their negative environmental impact. Nevertheless, a closer look shows that things are a bit more complicated.
What’s next for Latin American civil society as the supercycle of high commodity prices recedes in the rear-view mirror? And what are the most interesting trends in the extractives sector in the region?
In most countries, national governments negotiate extraction contracts with companies and collect the revenues, but it is those closest to the extraction site that see their physical and economic landscape change most dramatically.
Many national governments in Latin America have been sharing mining and hydrocarbon revenues with subnational authorities for years. In some of these countries, the amount shared is quite significant. But what are the most effective models?