Parliament and Extractive Industries: Unit 4: Stage 1. Decision to Extract

 

Learning Objectives

Poverty and Social Impact Analysis

After studying this unit, you should be able to:

  • Be able to tell what a Poverty and Social Impact Analysis (PSIA) is
  • Know why a PSIA is useful in the extractive industries sector
  • Know why it is important to take artisanal mining into account when making the decision to extract
  • Know about the environmental implications of extractive industries operations
  • Know how to make an informed choice in deciding between extraction or no extracting of oil, gas or minerals
  • Be able to explain why it is important to recognize indigenous communities
  • Be able to articulate in which cases extracting oil, gas, or minerals might not be the best decision
  • Be able to explain what it takes for the local level to be able to benefit from extractive industries
  • Recognize the importance of planning and active management of the use of land
  • Realize that expectations regarding the wealth generated from extractive industries are often very high, and they differ per stakeholder

 

Introduction and Overview

When exploitation for oil has proved successful or when mineral resources are discovered the question policy makers ask themselves is usually not ‘Should we exploit the resource?’ but rather ‘How (fast) are we going to exploit the resource?’ This Unit will show that considering the first question (Should?) is a necessary prerequisite of the second question (How?). There are several factors that can together lead to the decision to leave the resources in the ground. This Unit explains the importance of environmental impact, poverty and social impact, artisanal mining and indigenous communities, and lays out how effective land management and local content can make communities benefit from the extraction of extractive industries.

 

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