Essentials for Economists and Public Finance Professionals: The Extractive Industries Sector (World Bank Studies)

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector; its economics, governance, and policy challenges; as well as the implications of natural resource wealth for fiscal and public financial management. The objective of the two-volume Essentials for Economists, Public Finance Professionals, and Policy Makers, published in the World Bank Studies series, is to provide a concise overview of the EI-related topics these professionals are likely to encounter. This first volume, The Extractive Industries Sector, provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that, economists, public finance professionals, and policy makers working in resource-rich countries--including decision makers in ministries of finance, international organizations, and other relevant entities--will find the study useful to their understanding and analysis of the EI sector.

"This book is the first volume of a two-volume World Bank study of the extractive industries sector. Together, the two volumes are intended to introduce policy-makers and their advisers to the main issues concerning the sector, with guidance about further reading for those interested. The second volume is due to tackle questions of public finance; the first is more wide-ranging, stretching from the basic economics of the sector to monitoring and enforcing contracts. (...) This book serves as an admirable introduction to policy issues in the extractive industries sector, with clear guidance on further reading on all the topics. An additional feature that will enhance the potential readership is that it is published in French, Spanish, and Chinese, as well as English." ----Michael Bleaney, University of Nottingham