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Blog Posts: natural resources

  • According to data from Global Forest Watch, an online mapping platform that tracks tree cover loss and gain in near-real time, industrial development and forest fires in Canada’s tar sands region has cleared or degraded 775,500 hectares (almost two million acres) of boreal forest since the year 2000. That’s an area more than six times the size of New York City. If the tar sands extraction boom continues, as many predict, we can expect forest loss to increase.

  • The “resource curse" describes the paradox where countries rich in oil, gas, and minerals remain largely impoverished. Better transparency—both in how governments spend extractive revenues and how natural resource decisions are made—could help tackle this problem. While some new initiatives are making progress on this front, more needs to be done to ensure that drilling and mining doesn’t come at the expense of communities and the land, water, and wildlife they rely on.

  • In much of Africa, the bundle of land rights that most rural people legally hold is relatively small—usually limited to surface rights and certain rights to some natural resources on and below the surface, such as rights to water for domestic use. Many high-value natural resources—such as oil, natural gas, minerals, and wildlife—are governed by separate legal regimes and administered by different public institutions. Africa’s governments often allocate these rights to outside, commonly foreign companies for large-scale operations. In other words, while many communities hold rights to the land, foreign companies hold the rights to the natural resources on or under the same plot. These overlapping rights oftentimes lead to conflict, unsustainable use of resources, and injustices.

  • Canada’s Prime Minister, Stephen Harper, took a significant step toward promoting transparency and reducing global poverty. He announced yesterday that Canada will implement mandatory reporting requirements for Canadian extractive companies operating both in-country and abroad.

    This mandate will require Canadian extractive companies to publicly disclose the payments they make to foreign governments in exchange for permission to operate on their soil. This development will help promote transparency in the mining sector and, if implemented effectively, could help combat the “resource curse.”

    Fighting the Resource Curse through Access to Information

    Tackling the “resource curse” is a challenge of global proportions. The term applies to situations where, despite a country’s mineral or oil wealth, poverty is exacerbated in part by weak or corrupt institutions, government mismanagement of revenues, and a failure to re-invest into projects that benefit the public—such as infrastructure, education, and healthcare. Often, citizens of resource curse countries aren’t able to hold their governments accountable for this abuse of power because they lack information about their country’s revenues and expenditures (see Box).

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