Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229396
Authors: 
Östensson, Olle
Year of Publication: 
2020
Series/Report no.: 
WIDER Working Paper No. 2020/172
Abstract: 
The paper reviews the debate about transparency in extractive industry commodities trade. It examines the obstacles to improved transparency. A critical review of the experience with estimating losses from a lack of transparency concludes that many of the published estimates of losses from transfer mispricing and misinvoicing suffer from methodological deficiencies and appear to be exaggerations. The role of finance in extractive commodities trade is briefly discussed and it is noted that lending to companies owned by the state may affect the government's standing with donors and investors. The most important transparency and responsible sourcing initiatives are reviewed. The initiatives appear to have had some positive effect on public financial management, investment climate, and economic growth. The experience of government-initiated responsible sourcing, including for conflict minerals, concludes that initiatives must include all or almost all market participants and that the cost of due diligence be equitably shared. Finally, a number of recommendations are made.
Subjects: 
transparency
commodity trading
extractive industries
conflict minerals
responsiblesourcing
transfer mispricing
misinvoicing
JEL: 
H26
K42
L71
L72
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-929-7
Document Type: 
Working Paper

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