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Extractive Industries and Sustainable Development: An Evaluation of the World Bank Group's Experience
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How effectively has the World Bank Group assisted its clients in enhancing the contribution of the extractive industries to sustainable development? This evaluation finds that with its global mandate and experience, comprehensive country development focus, and overarching mission to fight poverty, the World Bank Group is well positioned to help countries overcome the policy, institutional, and technical challenges that prevent them from transforming resource endowments into sustainable benefits. Furthermore, the World Bank Group’s achievements are many. On the whole, its extractive industries projects have produced positive economic and financial results, though compliance with its environmental and social safeguards remains a challenge. Its research has broadened and deepened understanding of the causes for the disappointing performance of resource-rich countries. Its guidelines for the mitigation of adverse environmental and social impacts have been widely used and appreciated. More recently, it has begun to address the challenge of country governance with a variety of instruments. The World Bank Group can, however, do much to improve its performance in enhancing the extractive industry sector’s contribution to sustainable development and poverty reduction. The report identifies three main areas for improvement – formulating an integrated strategy, strengthening implementation and engagement of stakeholders.
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