Donors get creative, take risks on extractive industry

Members of the Extractive International Transparency Initiative International at the PT Timah site in Indonesia. The extractive sector — which typically includes the subsectors mining, oil and gas — holds huge development potential, but is marred by a history of irresponsible corporate practices and environmental degradation. Photo by: The EITI / CC BY-SA

In today’s tight and uncertain fiscal climate, donor countries are in constant pursuit of new strategies and viable partners that can help maximize each aid dollar they invest in developing countries. The private sector has been the answer in some cases, approaching development challenges in emerging markets differently and opening up to public sector aid donors to coordinate development investments.

Donor countries are restructuring their aid programs to capitalize, in part, on these new realities and alignments. In 2013, Canada and Australia folded their aid agencies into their country’s foreign affairs and trade ministry. While it remains to be seen exactly how both donor countries will integrate aid, diplomacy and trade, and the impact it will have on developing countries, there are signs that Canada and Australia are testing new avenues at the intersection of development and commerce, and one of those avenues is leading to enhanced public-private partnership in the extractive sector.

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About the authors

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    Christine Dugay

    Christine is a senior analyst under the Surveys and Advisory Services team of Devex. A skilled researcher, she contributes to and/or leads custom research projects and surveys commissioned by leading companies and development institutions. Christine has a professional certificate in political economy and a master’s degree in Japanese studies, and is a fellow of the Japan Foundation.
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    Orenz Nito

    Orenz Nito is a development analyst at Devex’s survey analysis and advisory services team. Prior to joining Devex, he worked as a risk analyst for an Asia-focused security and political risk consulting firm, preparing risk assessment reports for foreign investors, international organizations and embassies operating in the Philippines and across Asia. Based in Manila, Orenz is currently working on his MBA degree.