The Demand and Supply Sides of Corruption in the Extractive Industries, including parliamentary oversight of mining companies/activities in home and host countries 

Phase 1 

The oil and gas and mining industries are the fourth and fifth most corrupt industries globally, after public works and construction, utilities, and real estate, property, legal and business services. Rapid growth of mining in Africa - in part due to the World Bank and the International Monetary Fund is the focus of much international attention and concern. As one of the biggest participators in the African extractives industry, Canada’s global reputation is being sullied by local stakeholder concerns and negative reporting on the activities of Canadian extractives corporations, including corruption. Canada currently ranks 10th internationally (with a score of 81/100) in Transparency International (TI)’s corruption perception index (down from 6th and a score of 87/100) in 2010) and sixth (down from first–least corrupt–in terms of its corporations’ giving bribes in 2009) in TI’s Bribe Payer’s index.     

This project: (i) analyzed the supply and demand sides of corruption related to Canadian mining and/or oil and gas operations in three African countries - Burkina Faso, Ghana and Tanzania  - and examined how effectively problems of corruption were being addressed by the mining and oil & gas corporations’ (CSR and other) activities; (ii) examined whether host parliaments were effectively overseeing the foreign extractives investment and, in particular, the resultant government revenues; and (iii) determined whether host parliaments are adequately representing the views of local stakeholders.  

This study utilized comparative case studies that will allow the exploration of the contextual richness of Canadian mining corporations in Africa. In each of the three selected countries (Burkina Faso, Ghana and Tanzania), we conducted field surveys in local mining/oil & gas communities to gain insight into local stakeholder perceptions of mining operations and associated issues, together with public perceptions of CSR programs and the adequacy of host parliamentary oversight of government revenues from foreign extractives investment. We also conducted key informant interviews with company officials, Canadian government officials in the host countries and with host country government officials and parliamentarians. 

 

(Social Sciences and Humanities Research Council Grant #  430-2015-00465) 

Principal Outputs 

“Parliamentary Oversight of Extractive Industries” (2018). Deji Oloare, Rick Stapenhurst, Rasheed Draman, Emine Sarigollu, Myung-Soo Jo, Fahri Karakas and Myriam Ertz) Journal of Anti-Corruption Law Vol 2, pp. 1-30.                                                           http://www.jacl.org.za/docman-menu/14-olaoreandstapenhurst/file.html 

“The Supply and Demand Sides of Corruption: Canadian Extractive Companies in Africa” (2017). Rick Stapenhurst, Fahri Karakas, Emine Sarigollu, Myung-Soo Jo and Rasheed Draman) Canadian Journal of Foreign Policy Vol 23, No. 1 pp. 60-76.          https://www.tandfonline.com/doi/abs/10.1080/11926422.2016.1250655?journa... 

“Between a Rock and a Hard Place” CIM Magazine (Canadian Institute of Mining), May 16, 2017 

Phase 2 

This phase aims at deepening previous research efforts under the Phase 1 Grant, which identified a multifaceted and complex picture of corruption whereby different stakeholders have very different perceptions and assumptions regarding the nature, reasons, and dynamics of corruption. In this project, we draw on these previous research efforts and extend them by understanding corruption from a more comprehensive viewpoint, bridging many facets of corruption and mobilizing a greater variety of theoretical framework and disciplinary perspectives. In addition, building on a strong corpus of cumulated theoretical and empirical findings, we propose original methods to tackle corruption for policy-makers and businesspeople alike. We do so by deepening the research in the countries we previously investigated (i.e. Ghana, Burkina Faso, and Tanzania), by adding new countries (i.e. Kenya, and/or Zambia, and and/or Botswana), oil and gas companies in addition to mining companies, and by enlarging our research team with new members with complementary skills and expertise in the domain of business ethics and corruption.  

More specifically, this project aims at:  

  1. Developing a holistic understanding of corruption dynamics and bridging its many faces in the field;  
  2. Developing guidelines for corporations, governments, and parliaments to deal with corruption more effectively.  

(SSHRC Grant #  435-2018-0057) 

Principal Outputs

Coming soon.  

 

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