Title: Preventing Conflict in Resource-Rich Countries: The Extractive Industries Value Chain as a Framework for Conflict Prevention
Author/Institution: World Bank, European Union & United Nations Publication Year: 2015
Purpose of the Framework
This joint publication by the World Bank, European Union, and United Nations sets out the Extractive Industries Value Chain (EIVC) as a diagnostic tool for identifying and mitigating conflict risks in resource- rich countries. It maps the extractive sector into distinct stages—licensing, regulation, revenue collection, revenue distribution, and implementation of development projects—arguing that each stage presents both opportunities and vulnerabilities. The central premise is that poor governance and weak institutions along the value chain amplify grievances and increase the risk of conflict.
Key Insights
The report finds that conflicts frequently emerge where there is lack of transparency in licensing and contracts, inequitable revenue distribution, and weak oversight of environmental and social impacts. Communities often see little benefit from resource extraction, while bearing most of the costs in terms of land displacement, environmental degradation, and social disruption. The EIVC framework suggests that by strengthening accountability and inclusion at each stage, governments and companies can prevent disputes from escalating into violence.
Policy and Industry Implications
For policymakers, the EIVC provides a roadmap to embed conflict sensitivity into resource governance, aligning legal, fiscal, and institutional reforms with peacebuilding objectives. For industry, it underscores the importance of engaging not only at the project level but also in broader governance processes, from revenue management to local development planning. By adopting the value chain as a lens, stakeholders can move beyond reactive crisis management toward proactive strategies that transform natural resource wealth into a source of stability rather than conflict.