Natural Riches?

The report argues that while natural resources offer extraordinary opportunities for development in fragile states, poor management often leads to a 'downward spiral' of corruption, social unrest, and violent conflict. It advocates for a 'do-no-harm' approach based on inclusivity, transparency, and the alignment of resource extraction with broader national development strategies. The document provides detailed frameworks for contract design, institutional stewardship, and community engagement, while using Myanmar as a primary case study for transitioning toward responsible governance through initiatives like the Extractive Industries Transparency Initiative (EITI).

• There is a significant correlation between natural resource exploitation and violent civil conflict, with estimates suggesting that 40% of intrastate conflicts are related to or fuelled by natural resources.
• Responsible resource extraction requires a 'do-no-harm code' that prioritizes avoiding the fueling of corruption and uneven development, respecting human rights in the vicinity of operations, minimizing grounds for conflict over gains and costs, and avoiding the creation of unrealistic social and economic expectations.
• To avoid the 'natural resource curse,' policy-makers must balance the immediate need to attract investment through concessions with long-term development goals, ensuring that resource revenues are used for investment and diversification rather than short-term consumption.
• Effective contract design in conflict-prone areas should follow eight guiding principles, including the preparation of parties to address destabilizing implications, the establishment of non-judicial grievance mechanisms for third parties, and the disclosure of contract terms except where compelling justifications exist.
• Transparency in the extractive sector is moving beyond simple revenue payment disclosure to include the transparency of contract and licensing processes, ultimate beneficial ownership of companies, and the specific ways revenues benefit citizens.
• In Myanmar, the extractive sector faces specific transparency challenges, including a high ratio of informal to formal sectors in gems, jade, and gold—estimated by some experts at 9:1—and opacity in the hydropower sector regarding contract pricing and revenue flows.
• Responsible community engagement must be based on principles of participation, consensus-building, equity, and accountability to prevent grievances from escalating into mass protests and instability.
• The 'local content' approach, which focuses on the procurement of local goods, services, and workforce development, can drive broader economic diversification if it is integrated into industrial policy and supported by capacity-building initiatives like enterprise centers.
• For companies operating in high-risk areas, the Voluntary Principles on Security and Human Rights (VPSHR) provide a framework to ensure that the safety of operations does not result in human rights abuses, requiring risk assessments, stakeholder engagement, and rigorous training for security personnel.

APA

World Economic Forum (2013). Natural Riches? http://www3.weforum.org/docs/WEF_GAC_NaturalRiches_ResponsibleNaturalResourceManagementConflictCountries_Report_2013.pdf

Chicago

World Economic Forum. Natural Riches? 2013. http://www3.weforum.org/docs/WEF_GAC_NaturalRiches_ResponsibleNaturalResourceManagementConflictCountries_Report_2013.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Natural Riches? |date=2013 |url=http://www3.weforum.org/docs/WEF_GAC_NaturalRiches_ResponsibleNaturalResourceManagementConflictCountries_Report_2013.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2013natural, author = {{World Economic Forum}}, title = {{Natural Riches?}}, institution = {World Economic Forum}, year = {2013}, url = {http://www3.weforum.org/docs/WEF_GAC_NaturalRiches_ResponsibleNaturalResourceManagementConflictCountries_Report_2013.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }