This U4 Issue discusses the corruption risks faced by mining companies in Guatemala, with a particular focus on the risks faced by small, “junior” mining companies primarily engaged in exploration.

Divided into three parts, this collaborative work looks at the varied challenges brought about as a result of corruption in the water sector. It also looks at recent research conducted and provides an overview of the water sector corruption challenges in country profiles across the globe. Corruption in the water sector puts the lives and livelihoods of billions of people at risk. The onset of climate change and the increasing stress on water supply around the world make the fight against corruption in water more urgent than ever.

Natural resources are a noted cause of intra-state conflict and deserve recognition as such by ECOWAS. Oil, in particular, is linked to frequent civil strife and conflicts induced by slow rates of economic growth, weak and undemocratic governments, rampant corruption and heavy militarization. Many African countries have already suffered the negative consequences of an oil-dependency, including Angola, which endured a brutal civil war that lasted for more than a quarter-century.

This paper analyses the reasons why Mali’s gold economy has failed to benefit the population despite its rapid growth and the boom in the gold market. It also explores the conflicts of interests between the State and the private mining companies in the country which arose from rules designed to attract foreign investment.

Botswana's meat export parastatal, the Botswana Meat Commission (BMC), has been much in the local news. Cattle suppliers have become accustomed to substantial annual producer price increases from this successful national industry, which has expanded increasingly into European markets. But at the end of 1984 it was announced that there would be no bonus paid and no price increase for 1985. This was later changed to a small 5% price increase, following producer pressure.

This Human Rights Watch report examines the misuse of public funds by local officials in the Rivers State of Nigeria’s. It is based on interviews in Rivers state with government and donor agency officials, civil servants, health care workers, teachers, civil society groups and local residents. Also state and local government budgets are analysed.Despite Nigeria’s strong oil industry ordinary Nigerians have derived appallingly little benefit from that wealth and the misuse of public funds by local officials had harmful effects on primary education and basic health care.

Improving land governance is key in assuring that land resources can be enjoyed by all parts of the population. Donors can play an important role in combatting corruption in land administration and building a well-functioning land administration by both supporting domestic government efforts as well as engaging in international and multi-country initiatives. However, donors are advised by experts and civil society organisations to be mindful of the possible impact of their interventions on issues of land grabbing and forced relocations.

Corruption is a serious problem in many developing countries that are rich in oil and other natural resources. This is central in explaining why resource rich countries perform badly in terms of socioeconomic development. Transparency has recently been viewed as a key factor in reducing corruption and other dysfunctions in natural resource rich countries. The paper addresses the relationship between transparency and corruption, with an emphasis on oil rich countries.

To be fully prepared for Lebanon’s possible transformation into a major oil and gas producer, the risks of corruption in connection to its nascent petroleum sector need to be better understood and addressed. Given Lebanon’s dismal track record in countering corruption and its chronically gridlocked political process, the risks of corruption in the country’s nascent petroleum sector are significant.

This paper notes that under a sustainable, well-managed, logging regime, Papua – the most densely forested part of Indonesia – can potentially contribute substantial forest revenues for socio-economic development. Yet, it remains the poorest region in the country, in part due to widespread corruption involving public and private actors.The paper argues that, reforming the management of these resources – specifically, introducing accountability and transparency into the collection of forest revenues – is a key precondition for welfare improvements in the region.

In 1995, corrupt officials secretly awarded all of Cambodia’s unallocated forest, 35 per cent of the country’s total land area, as concessions to logging companies. How have these rogue loggers exploited political instability and weak government institutions to plunder Cambodia’s timber? Can anything be done to check the depredations of the ‘untouchables’ before Cambodia is logged out?

Studies of the consequences of corruption have mainly focused on economic efficiency. This paper illustrates that corruption can also have distributional consequences. Corruption increases income inequality and poverty through lower economic growth; biased tax systems favoring the rich and well-connected; poor targeting of social programs; use of wealth by the well-to-do to lobby government for favorable policies that perpetuate inequality in asset ownership; lower social spending; unequal access to education; and a higher risk in investment decisions of the poor.