Corruption in Extractive Industries – Changing the Scenario?

The Handbook of Business and Corruption

ISBN: 978-1-78635-446-4, eISBN: 978-1-78635-445-7

Publication date: 29 August 2017

Abstract

This chapter discusses the special case of extractive industries in relation to susceptibility to corruption, especially in states with weak institutional and governance structures. The systemic nature of this corruption is shown in a vicious cycle of extractive resource dependency and corruption which reinforce each other. The chapter then concentrates on the supply side of corruption, and the role of the private sector with domestic and foreign natural resources companies feeding into systemic corruption. Corruption is underpinned by a high demand, high prices for extractive resources scenario, and mitigated by a low demand, low prices scenario. Transparency oriented, anticorruption measures may not be effective in their own right, but a low demand, low prices scenario could provide an opening for such measures to take root, with accompanying benefits to the citizens of resource rich states and their environment. This suggests taking a contingency approach to dealing with corruption.

Keywords

Citation

O’Higgins, E. (2017), "Corruption in Extractive Industries – Changing the Scenario?", Aßländer, M. and Hudson, S. (Ed.) The Handbook of Business and Corruption, Emerald Publishing Limited, pp. 179-208. https://doi.org/10.1108/978-1-78635-445-720161011

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Emerald Publishing Limited

Copyright © 2017 Emerald Publishing Limited

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