Sustainable Resource Use

An increasing number of developing countries have become economically dependent on nonrenewable resources, and more will do so over the next decade. Large-scale extraction of oil, gas, minerals and other nonrenewable resources lead to profound transformations at the national as well as the local level. Governments face the challenge to negotiate favorable contracts, transparently collect revenues, trade their commodities to the benefit of the country, and effectively manage and reinvest revenue windfalls; producer regions are exposed to the environmental impact of extractive operations and also confronted with rapid population growth, an increase in cost of living, and changing social dynamics due to in-migration of workers and jobseekers. While the impact of windfall revenues can boost development, experience shows that many resource dependent countries often face rent seeking, heightened levels of corruption and illicit financial flows, conflict, human rights violations and environmental degradation. This research cluster studies variables shaping the outcome of resource governance to inform policy making at the local, national and international level.