Projecting Poverty: Local And Project Level Indicators On The Extractive Industries In World Bank Group Funded Projects

Equity investments and loans are made in oil and gas and mining projects by the World Bank Group (WBG) as one piece of a multi-faceted quest to reduce poverty. The Bank mandate to reduce poverty through private sector investments has been contested by civil society organizations, so the Bank has established an independent review, entitled the Extractive Industries Review (EIR) www.eireview.org. The EIR is reviewing, from the perspective of affected stakeholders, the impacts and benefits of WBG development policy. In this paper, we review the indicators used by the WBG, academics and others to measure the effectiveness of investments. We argue that currently used frameworks and indicators do not capture local or regional data sets, and instead focus on available and easily aggregated information at the national level. A case review of the WBG?s International Finance Corporation (IFC) and Multilateral Insurance Guarantee Agency (MIGA) investments and loans in Sub-Saharan Africa provide material data buttressing the argument. Poverty studies in the extractive industries have a long way to go toward measuring and accounting for dollars spent and invested. The paper concludes with a call for project level and regional indicators to track poverty alleviation. Data gathered for this research was funded in part by the Extractive Industries Review.