We’ve seen significant advancements in the world. This holds true, particularly in contract transparency and revenue. Its impact on increased accountability, on the other hand, is still a mystery. Without lawmakers making a solid framework, as well as competent institutions, being transparent alone, would not be enough in attaining sustainable development.
What is needed at this time is collaborative, adaptive and flexible management practices supported with firm understanding of political economy.
This is the only way that the world can truly adapt to the changing circumstances as well as the local context.
Big Challenges in Using Natural Resources
Natural resources have a big contribution to the outcome but a lot of countries rich in resources are being plagued with:
- Dysfunctional Institutions
- Poor Governance
- Weak Economic Performance and;
Transparency of the natural resource management using initiatives like EITI or Extractive Industries Transparency Initiative is being promoted as a way to address and increase accountability in resource issues.
Only if Used Right
Proper usage, distribution, and allocation of natural resources can provide enormous wealth to the country. This can contribute to food security, livelihoods, green economy and not to mention, promoting enterprise and trade at local, national even on an international level. However, with huge volumes of revenue that is at stake, the extractives sector is typically associated with corruption and poor governance.
This is one of the many reasons why various businesses these days are doing their fair contribution in using natural resources by any means possible. This includes the retail industry like clothing, small electronic devices like the best cordless vacuum for hardwood floors, hospitality industry, real estate industry and everything you could think of.
There are various aspects of governments that play a vital component in ensuring fair distribution and sustainable exploitation that’ll help in maximizing the contribution of our natural resources. In this regard, one of the ways to secure the success of this task is by mitigating corruption risks as well as improving governance of natural resource management.
That’s why Transparency is Needed
In particular, regulations, laws and institutional practices must enable criminalization of bribery, open competition, and accountability and comprehensive disclosure of information. For the awarding of licenses and contracts, there ought to be transparent awarding procedures to have access to contract transparency and information.