A review of natural resource extraction industries and their influence on the occurrence of poverty

Abstract

PurposeThis research paper takes a narrow approach to examining the apparent link between poverty and the resource extraction industries. However, it acknowledges that much more is to be explored about this relationship. Many complexities influence the occurrence and degree of poverty in a particular country, region, or community.Design/methodology/approachThe literature review identified proposed and operational poverty reduction actions and processes categorized under the broad concept of community development projects. The surveyed cases describe how various corporate strategies, work processes, labor requirements and efficient management and governance solutions are purported to improve poverty-reduction efforts potentially.FindingsNo causal linkages between poverty and hypothetically valuable and successful community development projects were found. No poverty monitoring evaluations and learning data (MEL) for these projects were proposed and published in most of the literature. However, associations were observed between some business practices implemented in these resource extraction community development projects and observations of indicators of lower poverty levels.Practical implicationsThe research improves our understanding of the requirements and opportunities for successful community development projects by highlighting processes, company strategy, human resource programs and enlightened governance that can contribute to reducing poverty.Originality/valueThe paper identifies the characteristics of community development projects that appear to span natural resource extraction industries and countries. Effective management strategies and representative and formally designated organisational governance boards are essential for these projects.