Measuring the Contribution of Extractive Industries to Local Development: The Case of Oil Companies in Nigeria
ESSEC Working Paper 1109
30 Pages Posted: 1 Oct 2013
Date Written: July 30, 2011
Extractive industries face two main challenges in terms of CSR and poverty reduction: 1) recognize that societal activity is part of their core business; 2) take part in socio-economic projects that contribute to their stakeholders' empowerment and not only to their living conditions. Based on surveys achieved in Nigeria in 2008, the paper presents two societal performance indices meant to be complementary: the Poverty Exit Index (PEI) and the Relational Capability Index (RCI). We show that, while they have fostered the PEI of the local communities, the development projects of the oil companies had a rather negative impact on their RCI. We then identify key variables that can influence positively the RCI and on which a sensible development policy should focus.
Keywords: development indices, capability approach, relational capability, development, poverty, impact assessment
JEL Classification: C43, D21, F21, L71, O12, O55
Suggested Citation: Suggested Citation