Local Content Policies in the Oil and Gas Sector (World Bank by Silvana Tordo,Michael Warner,Osmel Manzano,Yahya Anouti

By Silvana Tordo,Michael Warner,Osmel Manzano,Yahya Anouti

a couple of international locations have lately came across and are constructing oil and fuel reserves. coverage makers in such international locations are frightened to procure the best advantages for his or her economies from the extraction of those exhaustible assets by means of designing acceptable guidelines to accomplish wanted targets. One vital subject of such guidelines is the so-called neighborhood content material created via the sector—the volume to which the output of the extractive region generates extra merits to the financial system past the direct contribution of its value-added, via its hyperlinks to different sectors. whereas neighborhood content material guidelines have the aptitude to stimulate broad-based monetary improvement, their software in petroleum-rich international locations has accomplished combined effects. This paper describes the rules and practices intended to foster the improvement of financial linkages from the petroleum region, as followed by means of a couple of petroleum-producing international locations either in and out of doors the agency for monetary Co-operation and improvement. Examples of coverage targets, implementation instruments, and reporting metrics are supplied to derive classes of wider applicability. The paper offers a variety of conclusions for coverage makers concerning the layout of neighborhood content material policies.

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