Governance challenges and possible guidelines for the extractive industries in

developing countries

There is an incredible potential in using revenues gain from the extractive resources
inclusively. However, in most if not all developing countries, the reality of the change bought
in by extractive companies (industries) for sustainable development is indefinable. This is
because an undefined number of conflicts, some with severe consequences over distribution,
mechanism and not leaving out organization and application have tainted the extraction of
natural resources from the extractive industrial operations in these countries. There are
critical challenges in the extractive industries for good governance activities, sectors and
planning.

My academic and professional experiences in oil and gas sector in Asia, Africa and other
regions. This training will help me to understand further the policy governing extractive
industries and contribute to bridge the gap in awareness suitable good governance regimes
capable of creating an avenue for divergent interests and positions of various stakeholders of
extractive resources and how revenues could be handled.

Some of the main critical challenges underpinning sustainable development of crude oil and
mining sectors in developing countries include but not limited to the following points
outlined below.

1) Environmental and Social Impact

Environmental and social impact is one of the main challenges facing all industries especially
the extractive industries in developing countries. Thus, an ample understanding of socio-
environmental difficulties in these industries is needed for all members; technical, political
and civil society individuals. There is a need for all these parties to engage for productive
management of the extractive industries for the benefit of all.

1) Revenue Management

Revenue management is one of the main challenges in managing natural resources revenues
in developing countries. These challenges can include relations between fiscal policies,
governance and institutional settings established to manage revenues. Undertaking this course
will enhance my analytical skills.

2) Tax, Royalty and Contract Terms

Tax, royalty and contract terms is another sort of challenges and this is endorse by the lack of
transparency and accountability on extractive industries, a good understanding on fiscal
regimes is important so that participants better understand the terms governing the flow of
revenue. With this course, I will gained solid background on the financial rules included in
contract and legislation that set payment obligations and the interaction among various
elements of the extractives industry legal system.