The Effect of Extractive Industries on the Economy of Sierra Leone: A Literature Review

Abstract

Extractive Industries Transparency Initiative (EITI) is a policy launched by an international organization, aiming to improve the living standard in countries where resources such as oil, gas, gold and other minerals can be found abundantly. In a way to avoid poor management and corruption, EITI, was initiated to promote transparency in the exploration of these natural resources. This calls for a great need of transparency in the management of the country’s resources. In a way to avoid poor management and corruption, better manage its natural resources, Sierra Leone endorsed the EITI in 2006.Revenues from the extractive industries should be an important source of economic growth and social development in developing countries. To this, an attempt is made to analyze the root causes of lack of cultural accountability, transparency, mismanagement, and poor public service delivery in the extractive industry as it affects the economy of Sierra Leone. This paper is an overview of reports to study the effect of the extractives industries on the economy of Sierra Leone since it endorsement to the EITI policy and also examines some of the main challenges and policies associated with Extractive Industries in Sierra Leone.