This document discusses how natural resources are embedded within many of the UN's Sustainable Development Goals (SDGs) and how corruption is often linked to countries that rely heavily on natural resource exports. It notes that while there is no standalone "natural resources" SDG, natural resources relate to goals around ending poverty, achieving food security, access to clean water and affordable energy, sustainable economic growth, reducing inequality, sustainable consumption and production, climate action, and more. It then outlines how corruption is more common in countries with weak institutions that rely on natural resource exports, especially oil, and explains some of the political and economic factors that can contribute to this "resource curse". The document concludes by noting increased calls for transparency and accountability in

1. J O D I V I T T O R I
S E N I O R P O L I C Y A D V I S E R , G L O B A L W I T N E S S
A D J U N C T P R O F E S S O R , G E O R G E T O W N U N I V E R S I T Y
D E C E M B E R 9 , 2 0 1 5
NATURAL RESOURCES,
CORRUPTION, & THE SDGS

2. THERE IS NO “NATURAL RESOURCES” SDG, BUT
THEY ARE EMBEDDED IN MANY OF THEM….
1. Ending poverty & hunger
• Economic rents from oil, mining, etc. expected to fund
development budgets
• Many rely on natural resource-related jobs
2. End hunger / achieve food security
• Oil, coal, etc. and the role in climate change and effects on
agriculture and fisheries
3. Clean water / sanitation
• Role in natural resource extraction & energy production in
water and air pollution
• Mining uses high levels of water
4. Affordable, clean energy for all

3. THERE IS NO “NATURAL RESOURCES” SDG, BUT
THEY ARE EMBEDDED IN MANY OF THEM….
5. Sustainable / inclusive economic growth & employment
• Major source of jobs
• Revenues used by governments to fund state employees
• Historical role of mining in exploitative employment
6. Inclusive / sustainable industrialization
• Natural resources as key inputs to industrialization
• Primary export producers and concerns over terms of trade
• Role of natural resources (i.e. oil) in “de-industrialization” from
Dutch Disease, etc.
7. Reduce Inequality
• Natural resource exporting countries tendency to be highly
unequal

4. THERE IS NO “NATURAL RESOURCES” SDG, BUT
THEY ARE EMBEDDED IN MANY OF THEM….
8. Sustainable consumption / production
• Sustainable / efficient use of natural resources
• Management of waste generation, production, etc.
• Rationalize inefficient fossil-fuel subsidies
9. Climate action
10. Conservation, restoration, & sustainable use of
forests, wetlands, mountains, etc.
• Role of natural resource extraction in environmental
destruction; importance of land reclamation
11. Peaceful / inclusive societies

5. WHAT DOES CORRUPTION HAVE TO DO
WITH ALL THIS?
Resource Curse “rule of thumb”: states with fragile
institutions who primarily rely on natural resource
exports (especially oil) tend to experience:
• Higher levels of corruption
• Stronger patronage systems
• Much greater levels of violent activity (especially
insurgency/civil war)
• Decreased democratization / increased authoritarianism
• Increased human rights abuses
• Lower overall employment; crowding out of local industries;
terms of trade
Worst case examples: Angola, Russia, Venezuela, Iraq, Iran

6. WHY DO POLITICAL ECONOMISTS
THINK THIS OCCURS?
• Breaks the “taxation / representation” cycle: governments not
reliant on their populations for fiscal support
• “Winner take all”: especially oil, whoever controls the
government and/or territory controls the “rents” from the natural
resources
• Governments will use coercion, violence, election irregularities, etc. to
maintain power and access to rents
• “It’s our turn to eat”: those excluded may use violent means
• Access to money is removed from overall economic growth of population
• Strong temptations to skim some of the money for oneself & patronage
network
• Opportunities for “bad actors” (corrupt politicians, criminals,
terrorists/insurgents)
• Natural resources as sources of financing
• Poor levels of rule of law & high corruption facilitate illegal activities
• Mobilizes popular discontent against corrupt politicians; may have
ethnic/religious overtones

7. WHERE DOES PUBLIC FINANCIAL
MANAGEMENT FIT INTO THIS?
Increased calls for transparency, accountability &
due diligence
• Publish What You Pay (PWYP)
• Extractive Industry Transparency Initiative (EITI)
• Dodd Frank section 1502: conflict minerals from DRC &
neighboring countries
• Dodd Frank section 1504: oil, gas and mineral companies
must publicly report how much they pay governments
• New company payment disclosure requirements in the EU,
UK, Norway, South Korea
• ISIS’ use of oil, antiquities, agriculture for financing may push
new terrorism-related rules

8. WHERE DOES PUBLIC FINANCIAL
MANAGEMENT FIT INTO THIS?
Increased calls for transparency, accountability &
due diligence in financial institutions, too
• Push against anonymous shell companies and for beneficial
ownership requirements
• Push for better real estate disclosure and KYC rules enforced
• New York State will issue new financial regulations
• London will conduct major counter-corruption conference
in 2016—may lead to new regulation
• Possible new terrorism finance inspired rules—already due
diligence difficulties for those banks working with Lebanon,
Turkey, etc.
• Increased regulation of Bitcoin & other virtual currencies

9. Contact Info:
Jodi Vittori
Senior Policy Adviser, Global Witness
Adjunct Professor, Georgetown University
jvittori@globalwitness.org