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Strategies for Job Creation In Extractives
At a Glance
- Government policies meant to foster the creation of jobs in the extractive industry take a variety of approaches. These include requiring extractive companies to fill certain quotas with local talent, establishing programs to build the relevant skill set of the domestic workforce, and creating an enabling environment for intersectoral linkages.
- Strategies to increase direct employment tend to emphasize either quantitative targets or softer methods of facilitation that rely on consultation with industry players.
- Some policies also seek to restrict the number of foreign workers and the duration of their employment.
- Cooperative strategies, based on collaboration between government and industry, tend to be most successful, particularly when they mobilize support from other interested parties, such as trade unions and civil society organizations, and include the participation of lower levels of government.
Case Studies
- BP in Angola, Sustainability Report 2016 (BP)
- Investments in the Saskatchewan Communities through the Supply Chain (International Council on Mining and Metals)
- Promoting Local Enterprise Development in Botswana (International Council on Mining and Metals)
Key Resources
- Collaborative Strategies for In-Country Shared Value Creation: Framework for Extractive Projects (Organisation for Economic Co-operation and Development)
- Commodities and Linkages: Industrialization in Sub-Saharan Africa (David Kaplan, Raphael Kaplinsky, Mike Morris)
- A Practical Guide to Increasing Mining Local Procurement in West Africa (World Bank, Kaiser Economic Development Partners)
- IGF Guidance for Governments: Local Content Policies (Aaron Cosbey, Isabelle Ramdoo)
- Local Content Policies in the Oil and Gas Sector (Yahya Anouti, Osmel E. Manzano, Silvana Tordo, Michael Warner)
- Local Content Policies: Stimulating Direct Local Employment (Tim Grice)
Topic Briefing
Government policies meant to foster job creation in the extractive industry may focus narrowly on direct employment within an extractive project itself, or may aim more broadly to support and facilitate economic development by reinforcing the linkages between extractive industry activity and the rest of the economy. Strategies often rely on a mixture of skills improvement programs, targeted corporate policies, and reforms intended to create an enabling environment that facilitates the establishment of intersectoral linkages.