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- Extractive Industries are important in over 50 developing countries, home to some 3.5 billion people.
- There is nothing intrinsically wrong with extractive industries, but the high-risk, high cost and uncertain nature of exploration, coupled with a long gestation before profits are realised and the finite nature of resources, makes financial management of the sector difficult.
- Companies investing large amounts of resources in natural resource extraction need to be assured of a stable, reliable environment for their investments.
- Ensuring that revenues from natural resources make it into government budgets for public sector expenditure (e.g. on health, education etc.), is key to reducing poverty, promoting democracy and reducing the risk of conflict.
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