Abstract
The globalisation of economies and markets, brings out the full importance of the responsibility on the part of national, regional and international authorities as regards competitiveness and support of sustainable local development. The extractive sector of natural resources is a good example of this phenomenon which involves several countries (often in less development areas) and large international enterprises which need for good procurement system. The corruption in business relationship is a barrier for development in Africa because it could be both a significant risk factor for international company investments and an inadequate solution to promote a real local development. In particular, the article is intended to provide an overview of the mining sector in Democratic Republic of Congo following the recent evolution of bribery connected to the rules of ITIE (Initiative pour la Transparence dans les Industries Extractives) and the emerging issues related to corruption and local development opportunities.
Highlights
Keyword: Competitiveness; Sustainable Development; Networking; Sustainability; Corruption in Africa; Tripartite Approach; Democratic Republic of Congo; Global Markets; Multinational Firms
The objective of this study is to identify the forms of corruption in the mining sector, its implications for the suspension of the Democratic Republic of Congo (DRC) Extractive Industries Transparency (EITI) and the importance of tripartite initiative to cope the corruption phenomenon
The DRC is a member of the Initiative for Transparency in the Extractive Industry since 2005 and it was suspended for a period of one year because of the principles of the EITI; our analysis shows that this sector is riddled with corruption at all levels the need for government to assume its responsibility in hands
Summary
Corruption is a growing challenge for businesses and society (Transparency International 2009). The corruption in private and public sector has its roots in the economic and institutional conditions of the lees-developed countries: a weak legal system (RoseAckerman, Coolidge 1997), a predominant government role in the economy (Antunes, Cavalcanti 2007), easy access to petro-rich state coffers (Ades, Di Tella 1999) by rulers who abuse their positions to selfenrich (Osoba 1996), lack of transparency in government expenditures, (Kolstad, Wiig 2009) and political norms that legitimate such behavior (Herbst 1996). At the same time many companies seek to protect themselves against the risks of corruption by going beyond policies and controls and building a culture of ethics and compliance. The objective of this study is to identify the forms of corruption in the mining sector, its implications for the suspension of the DRC EITI and the importance of tripartite initiative to cope the corruption phenomenon To achieve this goal, this study will use the inductive and deductive methods. The deductive method is used throughout the theory by identifying the practices carried out and arranged in proposed theories and deduce consequences that make predictions
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