Extractive Industries

This chapter focuses on extractive industries, which are among the business sectors most exposed to corruption. Typically, they are dependent on licenses by government agencies, frequently in states with little income other than royalties from mining or from the oil industry. Often these states are located in the global South with weak government structures. It is a common feature in these states that a small elite rapidly become extraordinarily rich, while the population at large remains in deep poverty. Oil and mining companies, traders, and the finance industries may not actually be in the driving seat, but they very frequently go along and participate in the organized plunder. They are regularly fully aware that the funds they pay to officials are going to be stolen. Sometimes they actively engage in bribery to secure drilling or mining licenses. Other players, like traders, indirectly profit of the systemic graft by elites.