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International Finance Corporation World Bank

February 2009, Governance and Social Development Resource Centre

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Many donor agencies have developed strategies and policies on a wide range of issues from natural resource management, corporate social responsibility, revenue transparency, energy, to environmental sustainability, which contain some reference to extractive industries (EI). However, this query explores donor policies/approaches only insofar as they deal directly with extractive industry management. Furthermore, this report does not represent a comprehensive mapping of donor activity in EI, rather it provides information on a selection of what are considered to be the most important initiatives. Donor approaches to extractives management fall broadly under two categories: 1) individual donor strategies and 2) multi-stakeholder initiatives (in particular the Extractive Industries Transparency Initiative (EITI). Before EITI was established in 2002, donor strategies on EI were scarce. 

Donors tended to conduct their work in isolation and principally through funding civil society organisations, be it for advocacy, research or capacity building. DFID‘s role in funding Global Witness stands out as one example - originally in relation to the trade in diamonds. As such, it is often revealing to look into how such initiatives are funded and organised. Indeed, according to one DFID advisor, ―it may not be immediately obvious that certain initiatives have a DFID link, but we may well be supporting them in one way or another.‖ Thus, multi-stakeholder initiatives are becoming an increasingly important part of donor support to EI. In addition, a number of civil society organisations (CSOs) are also key players in EI work.