Global and local extractive industry

Mining Investment and Governance Review (MInGov)

Mining livelihoods

The quality of governance is key in determining whether and to what extent developing countries are able to benefit from their domestic resource wealth on a sustained basis. Good governance creates a conducive framework for extractive industry investment, focuses on long-term sustainable development and takes the interests of local communities and the environment into account. Governance quality is particularly relevant in relation to the management of government revenue from extractive industries. The Sector Programme Extractives and Development addresses these issues within the framework of the Mining Investment and Governance Review (MInGov). Devised in conjunction with the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group, MInGov is an innovative tool for the systematic assessment of investment conditions in the extractives sector.

MInGov considers a range of factors, such as the legal framework, institutions, procedures, infrastructure and workforce skills, in order to produce a comprehensive overview of investment conditions in the resources sector. By improving the availability of information for stakeholders all along the value chain, the aim is to assist partner countries in initiating key reforms and to facilitate investment. In the first phase of the project, MInGov was piloted in seven African mining countries and in Peru. During the second phase, under way since 2016, MInGov is now being rolled out on a progressive basis, with a further 12-20 countries due for MInGov assessment by 2019. The geographical focus of the second phase is on Latin America, enabling a global comparison of the collected data to be made.

The Sector Programme Extractives and Development contributed to MinGov’s development and is involved in its implementation. In addition, the Programme supports public participation and the discussion of results in the countries concerned. In this way, Extractives and Development gains detailed insights into the current situation in a range of extractive industry countries, along with precise indications of their potential need for support. This information serves as a basis for designing future development cooperation measures in the extractives sector.

The initial MInGov analyses have already been published. The Sector Programme Extractives and Development, in cooperation with the IBRD, has already begun to explore the findings in workshops in Botswana and Zambia. Representatives of all stakeholder groups, including relevant government authorities, industry and civil society, were involved in the presentation of the results and subsequent discussions.

As examples, the Zambia and Botswana country reports provide more detailed insights into the MInGov process.

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