The extractive sector is famously prone to corruption. Resource rich countries on average score far worse than their non-resource rich peers on measures of corruption. Among the aspects of the resources sector most susceptible to corruption: the allocation of valuable licenses and contracts, particularly through subcontracting and in oil trading; regulation; spending of oil and mining revenues; and the efforts of government officials to participate in and profit from the extractive sector. Extractive sector corruption can be in both legal and illegal forms; the former is particularly possible in kleptocracies where political elites can manipulate the oil sector without law enforcement repercussions. International actors are often major enablers. Reducing or preventing corruption can be facilitated by beneficial ownership disclosure, as it reveals who really owns the companies that participate in the extractive sector. Exposing corruption is often done through the work of journalists and civil society activists.
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