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.
Sovereign wealth funds (SWFs) can be effective tools for managing natural resource revenues. However, as their numbers continue to grow, with the largest funds managing hundreds of billions or even a trillion dollars in assets, researchers are paying more attention to how well these funds are governed.
Since its independence from the Soviet Union, the Kyrgyz Republic has undergone more dynamic political development toward democracy compared to neighboring countries. However, it has not met its full economic potential. Continuing reform of its mining sector—identified as one of the five key strategic industries of the economy—is paramount.
С момента обретения независимости после распада Советского Союза политическое развитие демократического процесса в Кыргызской Республике происходило более интенсивно, чем в соседних странах. Однако экономический потенциал страны в полной мере не реализован. Непрерывное реформирование горнодобывающего сектора имеет первостепенное значение, учитывая тот факт, что он является одной из пяти основных стратегических отраслей экономики.
Last year’s meeting in Cape Town was overshadowed by pessimism in the wake of tumbling commodity prices and organizers tried to boost morale by encouraging participants to look “beyond the cycle.” But this year the buzz word for multilaterals was sustainability.
Since 2013, the EITI Standard has “encouraged” public disclosure of contracts. And while it is difficult to attribute causality to policy change, since the release of the 2013 EITI Standard, nine new countries released contracts, and nine enacted laws that require contract disclosure.
It has been notoriously difficult for citizens in resource-rich countries to lay hands on extractive industry contracts and licenses between their governments and private sector extractive companies. But that seems to be changing.