OECD Policy Dialogue on Natural Resource-based Development

Overcoming knowledge gaps to increase local supplier participation in local value chains around mining

09.01.2019 |

The German Federal Institute for Geosciences and Natural Resources used the OECD Policy Dialogue to present its LION-study on Local Investment Opportunities in Natural Resource Projects. This market analysis synthesises cash operating costs with procurement spend data to estimate the market sizes of various procurement items such as energy or spare parts. Currently two studies are publicly available, one for gold in Westafrica (Ghana, Cote d’Ivoire, Burkina Faso and Mali) and one for copper and cobalt in the Copperbelt (Democratic Republic of the Congo and Zambia).

The following  discussion centered around the usefulness of this policy instrument for policy-makers. Isabelle Ramdoo pointed out that it was useful in creating an effective prioritization of procurement categories when designing local content policies in Ghana. The study is also related to recent OECD research by Jane Korinek on domestic value addition in extractive value chains. Yet the results are different regarding the inputs into the mining sector due to diverging methodologies.  

The OECD Policy Dialogue on Natural Rersource-based Development is an intergovernmental process of knowledge sharing and peer learning among OECD and partner countries producing minerals, oil and gas on how to harness natural resources for structural transformation and more inclusive and broad-based development.

The Policy Dialogue facilitates the generation, systematisation, and access to tacit and newly developed collective knowledge through collaborative OECD and non-OECD evidence-based policy analysis. It focuses on four Work Streams: (i) Shared Value Creation and Local Development; (ii) Revenue Management and Spending; (iii) Getting Better Deals, and (iv) Domestic Resource Mobilisation (tackling BEPS, corruption and commodity trading transparency).

For further information please contact Thomas Grupp.

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