We research how natural resources can be managed to create positive political and economic benefits for citizens in developing countries.
New discoveries of natural resources like oil and gas raise people's expectations for a better future. Yet, history shows that the poor rarely benefit. Natural resources can be good or bad for development, depending on how political rulers govern their resources.
If political leaders capture the revenues generated from natural resource extraction and production and use them for personal enrichment and to stay in power, then resources will not help a country to develop. But if political leaders make wise decisions about managing natural resources and channel the revenues into productive economic activities, then countries can develop based on their natural capital.
In many developing countries, natural resource wealth often results in non-democratic political leadership, poverty, and armed conflict. We examine the reasons for this and ways to overcome these problems.We carry out research on how natural resources like oil, gas, minerals, forests, fisheries, water, and land can be managed for the benefit of citizens.
Our research examines the political economy of natural resource management - that is, the conditions under which political rulers will make good or bad decisions about how to use resource revenues. CMI research on natural resources produce practical recommendations for stakeholders and policy makers in resource rich developing countries. This includes assessment of policy options related to institutional reform, transparency initiatives, sector regulation, taxation, and revenue collection. Our analyses will be of use not only to progressive forces in resource rich countries, but also to governments in countries investing in resource extraction in developing countries, or importing resources from them.