Only 11 out of 58 countries rich in natural resources can effectively manage their wealth, according to the first of its kind report from the Revenue Watch Institute, a think tank which specializes in effective management of natural resources.<\/p>\n
A quarter of all independent countries on planet are resource
\nrich. The 58 states produce 85% of world\u2019s petroleum, 90% of the
\ndiamonds and 80% of copper with total profits from their extractive
\nsector totaling more than $2.6 trillion.<\/p>\n
According to the Resource Governance Index (RGI), in 41
\ncountries out of the group the extractive sector contributes a
\nthird of their GDP. And the future of these countries heavily
\ndepends on how effective they govern their resources.<\/p>\n
Norway takes the top ranking followed by the United States and
\nthe United Kingdom, all three majoring in hydrocarbon extraction.
\nRussia comes 22 in the ranking, dragging behind its neighbor
\nKazakhstan and major South American energy states. Among the
\ncountries with the worst natural resource governance are Saudi
\nArabia, Iran, and Turkmenistan, and Myanmar concludes the
\nranking. The Index shows a striking governance deficit in
\nnatural resources management worldwide with only 11 countries on
\nthe list scoring satisfactory.\u00a0<\/p>\n
The RGI evaluates four key components of resources governance in
\neach country: institutional and legal setting, reporting practices,
\nsafeguards and quality controls and enabling environment.\u00a0It
\nalso takes into account data from the World bank, advocacy groups,
\nincluding Transparency International and various ecology
\nwatchdogs.<\/p>\n
The Index is based on the assertion that a good governance of
\nnatural resources provides successful development of country and is
\ndesigned to serve as a tool to help identify good practices as well
\nas governing failure.<\/p>\n
The Revenue Watch Institute is a unique organization of its kind
\nexclusively dedicated to address the problems of countries that are
\nrich in natural resources.<\/p>\n