Extractives shift from transformative opportunity to risk

There may be strong economic arguments, as well as the ethical objections raised by campaigners, why development finance institutions (DFIs) should no longer focus on supporting extractives-led growth. A Chatham House research paper* asks whether such models of development are still appropriate as the global economy reduces its carbon dependency. Discussion of the paper at the Fossil Fuel Supply and Climate Policy conference in Oxford on 26-27 September tested the thesis made popular among DFIs during the long commodities boom that exploiting natural resources could end aid dependency and drive socio-economic development.