Petroleum-related aid programmes and projects are a key part of donor activities in oil-rich developing countries. This paper critically assesses petroleum-related aid activities, using the Norwegian Oil for Development programme as a main case. Recent research suggests that institutions, or governance, are essential in averting a resource curse. While governance issues are beginning to receive more attention in these types of programmes, they still form a minor part of programme activities. The narrow sector focus that characterizes petroleum-related aid makes it unlikely that it will produce the higher order institutional changes needed to lift the resource curse. Petroleum-related aid activities address the issue of corruption only to a limited extent. Given the commercial and political interests of donor countries, questions about the integrity and credibility of these types of programmes can be raised.

Ivar Kolstad

Associated Research Professor

David Aled Williams

Principal Adviser (U4) and Senior Researcher (CMI)