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Natural Resources Extraction in the Developing World

Paradoxically, some countries rich in natural resources—those that receive more than 25 percent of their government revenues from natural resources extraction—actually tend to have high and growing levels of poverty, extreme income inequalities, greater risk of conflict, and high levels of corruption.

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Too often, government revenues from resource extraction are simply not making their way into spending for basic social services such as health, nutrition and education. Worse yet, profits from extractives too often fuel terrible violence, as we have seen in the Democratic Republic of Congo and Sudan.

Poor governance and corruption in resource-rich developing countries are a serious problem, but developed country governments and private enterprise are part of the problem as well.

CRS Policy Position

CRS is committed to helping ensure that government revenues from extractive industries in the developing world improve the lives of poor people.

CRS believes that this can be achieved by:

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