Typology of Risks, Mitigation Measures and Incentives
One case of transnational corruption out of five occurs in the extractive sector according
to the 2014 OECD Foreign Bribery Report. In this area, corruption has become increasingly
complex and sophisticated affecting each stage of the extractive value chain with
potential huge revenue losses for the public coffers. This report is intended to help
policy makers, law enforcement officials and stakeholders strengthen prevention efforts
at both the public and private levels, through improved understanding and enhanced
awareness of corruption risk and mechanisms. It will help better tailoring responses
to evolving corruption patterns and effectively countering adaptive strategies. The
report also offers options to put a cost on corruption to make it less attractive
at both the public and private levels.
Published on August 18, 2016Also available in: Korean
Taking a one-dimensional approach to combatting corruption in extractives is unlikely
to achieve results. Both the supply and demand for corruption need to be tackled,
domestically and internationally, with granularity and differentiation across the
broad range of private and public actors.
Recommended mitigation measures and incentives addressed to home and host governments
and extractive companies will incentivise a voluntary change in behaviour, by making
corruption more costly and helping to make it less attractive for public and private
Closing the gap between theory and practice calls for building an alliance of home
and host governments using the typology as a standard diagnostic framework to assess
risk and implementing recommended mitigation measures and incentives across the value
chain, and through a peer review process.