Economic Governance and Transparency in Extractive Industries in Tanzania
According to the World Investment Report (2007) extractive industries (EI) are defined as primary activities involved in the extraction of nonrenewable resources. Extractive industries can yield benefits for countries through tax revenues, foreign exchange earnings, debt payments, production sharing and rents, the provision of jobs and infrastructure. For many resource endowed countries, extractive industries are a major economic driver: creating jobs directly or indirectly, revenue, and opportunities for growth and development. With good governance the exploitation of these resources can generate large revenues to foster economic growth and reduce poverty. This is usually possible with proper stewardship of revenue from extractive industries which help in lifting people out of poverty and contribute to sustainable development. When projects are well implemented and preserve the rights of affected people, and if the benefits they generate are well-used, then EI provide the ground for development.
