Extractive industries extract natural resources from a country.
More than 50 countries depend on oil, gas and minerals as their most important sources of government and export revenues. Large-scale fisheries, forestry and leasing of agricultural lands are also becoming important sources of revenue.
As the government is managing such resources in trust for the people, the people have a right to know what is being done with their natural wealth.
Mismanagement and corruption have many manifestations and can have dire consequences. Some countries
negotiate poor terms with extractive companies, forsaking potential long-term benefits. Many countries do not collect resource revenues effectively. And even when resource revenues do end up in government coffers, they aren’t always spent in ways that benefit the public. (Revenue Watch, 2013).