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Measuring the contribution of extractive industries to local development : the case of oil companies in Nigeria

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Author Info

  • Kâ Diongue, Abdou

    ()
    (Saint Louis University, Senegal)

  • Giraud, Gael

    ()
    (CNRS, Paris School of Economics, ESCP-Europe)

  • Renouard, Cécile

    ()
    (ESSEC Business School)

Abstract

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.

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Bibliographic Info

Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number WP1109.

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Length: 30 pages
Date of creation: 05 Oct 2011
Date of revision:
Handle: RePEc:ebg:essewp:dr-11009

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Keywords: development indices; capability approach; relational capability; development; poverty; impact assessment;

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  1. Surya Sen, 1999. "Global financial crisis and economic development," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Aug.
  2. Sabina Alkire and Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers ophiwp038, Queen Elizabeth House, University of Oxford.
  3. Cécile Renouard & Gaël Giraud, 2009. "Relational Capability : An Indicator of Collective Empowerment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00551842, HAL.
  4. Uwafiokun Idemudia, 2009. "Oil Extraction and Poverty Reduction in the Niger Delta: A Critical Examination of Partnership Initiatives," Journal of Business Ethics, Springer, vol. 90(1), pages 91-116, May.
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