NRGI, Advancing good governance in resource-rich countries

Project completed

500 million people live in extreme poverty in resource-rich developing countries. In many countries, the governance of the sector remains weak, leading to high risks of corruption and public revenue loss. NRGI combines evidence-based analytical work with targeted local and global engagement with civil society actors, governments and private companies to improve the accountability of the extractive sector. With its support, Switzerland aims to ensure that people living in developing countries truly benefit from their natural resources.  

Country/region Topic Period Budget
Global
Governance

Mineral/mining policy
Anti-corruption organisations
01.04.2020 - 31.03.2023
CHF  1’500’000
Background

The oil, gas and mining sectors have largely failed to deliver on their promise of a better life for all in resource-rich developing countries. The extractive sector remains prone to corruption, with policymakers too often prioritising short-term political or personal agendas. 

In addition, asymmetries of power, capacity and information often prevent governments from getting fair deals and from curbing aggressive profit shifting practices from multinationals. 

Governments too often sign contracts that will not deliver long-term returns and undermine efforts to prevent social and environmental damages. Revenues that could fund economic development and social services go uncollected

Objectives

NRGI 2020-2025 strategic goal:

Developing countries rich in oil, gas and minerals achieve sustainable and inclusive development; their people receive lasting benefits from extractives and experience reduced harms.

 

Target groups Resource-rich countries' governments; civil society organisations; media; parliaments; private companies; multilateral institutions. 
Medium-term outcomes

1.     Licensing and fiscal systems [related to the extractive industry] are more transparent, fair and help countries maximise the revenues available for development spending;

2.     Extractive sector revenues are increasingly managed in ways that serve long-term public interest and the economic sustainability of public finances, rather than short-term political or private agendas;

3.     Resource-rich countries advance rather than hinder the transition to cleaner energy;

4.    Governments and companies conduct sector operations in ways that reduce opportunities for corruption and anticorruption actors tackle extractive sector corruption more effectively. 

Results

Expected results:  

-                New or improved implementation of resource governance policy better aligned with global norms, best practices, and/or NRGI recommendations.

-                Governments, state-owned and private companies adopt resource governance policies, practices or norms better aligned with global norms, best practices, and/or NRGI recommendations.

-                Uptake of NRGI recommendations help shape the research agenda, reframe an issue, and/or provide a new conceptual understanding of a problem.

-                Participants of NRGI courses take actions that clearly put knowledge or skills they have gained into action or alter their behaviour in order to implement NRGI’s recommendations and best practices related to resource governance. 


Results from previous phases:  

-    Normative, voluntary and regulatory mechanisms that favour transparency in extractive and commodity trading activities strengthened through enhanced disclosure requirements on payments and contracts; 

-     Increased attention to the dominant role of Stateowned-enterprises in extractive economies and to the need for reforms;

-     Increased public availability and use of oil, gas and mining contracts;

-    Development of specific tools (the Resource Governance Index) to track governance progress in natural resource management in over 60 countries. 


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
International or foreign NGO
  • Other international or foreign NGO North


Other partners
DFID, NORAD, Luminate Foundation, Open Society Foundation, HP Foundation
Coordination with other projects and actors

Synergies with the SDC support to the Anti-corruption task  team of the OECD DAC (addressing IFF risks in the oil and gas sector and their development impact), as well as with the SDC earmarked contribution to the OECD Development Centre Dialogue on resource based development. 

Coordination with SECO funded EITI process. Coordination with SIF/SECO/HSD in the context of the Interdepartmental Platform on Commodity.  

Budget Current phase Swiss budget CHF    1’500’000 Swiss disbursement to date CHF    1’500’000
Project phases Phase 3 01.04.2023 - 31.12.2025   (Current phase)

Phase 2 01.04.2020 - 31.03.2023   (Completed)

Phase 1 01.10.2014 - 31.12.2019   (Completed)