Extractive Industries, Revenue Allocation and Local Politics (Research Note)

The success of a developmental strategy based on the extraction of non-renewable resources is rooted in the share of revenues captured by the state and the modalities that governments adopt to use and distribute those revenues. In this paper, the authors provide a political economy approach to understanding reform processes around the distribution of revenues from extractive industries (EIs). They undertook a comparative analysis of Bolivia, Colombia, Ecuador and Peru examining the political bargains that led to the distributional regimes adopted.

This Research Note is published as part of the UNRISD Road to Addis and Beyond Series, bringing together a number of short essays that engage with current Financing for Development debates.