In 2016, the OECD Development Centre published a report on Corruption in the Extractive Value Chain: Typology of Risks, Mitigation Measures and Incentives (Corruption Typology), presenting the first evidence-based analysis of patterns of corruption at each segment of the value chain, taking a multi‑dimensional approach in order to address both the supply and demand sides. The Corruption Typology identified a number of corruption risks in commodity trading and recommended measures for host governments, home governments, and commodity trading companies to mitigate these risks (OECD, 2016[1]).
The Thematic Dialogue on Commodity Trading Transparency was launched in 2017 as an integral part of the Policy Dialogue on Natural Resource-based Development in response to the call received from the 2016 London Anti-Corruption Summit. The Thematic Dialogue is in line with the high-level mandate received from the Development Centre Governing Board on 3 October 2017 (Governing Board of the OECD Development Centre, 2017[2]). It provides a multi-stakeholder platform for collaboration addressing the global and multifaceted challenges of corruption in commodity trading from both the supply and demand sides. It has produced complementary and mutually supportive tools that home countries, trading hubs, trading companies and producing countries, including state-owned enterprises, can use to reduce drivers of corruption, increase transparency and improve accountability in commodity trading.
This report was prepared in response to a demand to identify and raise awareness around evolving corruption patterns in commodity trading. It builds on the analysis contained in the 2016 Corruption Typology and delves deeper into corruption risks of cross-cutting relevance for the sales of oil, gas and minerals – focusing on the commonalities between oil, gas and minerals rather than the specificities of each commodity. The report draws from a number of in-depth consultations with resource-rich developing countries that have taken place over the last three years in the framework of the Thematic Dialogue on Commodity Trading Transparency, as well as from an analysis of a sample of concluded and ongoing corruption cases. The sample of cases reviewed has been compiled using publicly available databases, information in the press, a review of literature and input received from stakeholders. All reported cases have been anonymised in order to collate information, identify corruption patterns and allow for frank and open exchanges among participants in the Dialogue.
This report complements the work on Illicit Financial Flows (IFFs) and Oil Commodity Trading, developed under the auspices of the Anti-Corruption Task Team (ACTT), a subsidiary body of the OECD’s Development Assistance Committee (DAC). The ACTT programme of work highlights what OECD members can do to mitigate IFF risks in the sector through their role as official development assistance (ODA) providers.