Global Development

Natural Resource Charter

The Natural Resource Charter is a set of economic principles for governments and societies on how to best manage the opportunities created by natural resources for development. The Charter comprises twelve precepts, or principles, that encapsulate the choices and suggested strategies that governments might pursue to increase the prospects of sustained economic development from natural resource exploitation.

Precept 1
Resource management should secure the greatest benefit for citizens through an inclusive and comprehensive national strategy, a clear legal framework, and competent institutions.

Precept 2
Resource governance requires decision makers to be accountable to an informed public.

Precept 3
The government should encourage efficient exploration and production operations, and allocate rights transparently.

Precept 4
Tax regimes and contractual terms should enable the government to realize the full value of its resources consistent with attracting necessary investment, and should be robust to changing circumstances.

Precept 5
The government should pursue opportunities for local benefits, and account for, mitigate and offset the environmental and social costs of resource extraction projects.

Precept 6
Nationally owned companies should be accountable, with well-defined mandates and an objective of commercial efficiency.

Precept 7
The government should invest revenues to achieve optimal and equitable outcomes, for current and future generations.

Precept 8
The government should smooth domestic spending of revenues to account for revenue volatility.

Precept 9
The government should use revenues as an opportunity to increase the efficiency of public spending at the national and sub-national levels.

Precept 10
The government should facilitate private sector investments to diversify the economy and to engage in the extractive industry.

Precept 11
Companies should commit to the highest environmental, social and human rights standards, and to sustainable development.

Precept 12
Governments and international organizations should promote an upward harmonization of standards to support sustainable development.