Building Collaborative Governance in the Extractive Sector
Authors: Policzer Pablo 
Published: October 2024

The extractive sector faces wicked problems — so-called because they are complex, ambiguous, dynamic and evolving. They usually lack one root cause and their solutions often create unintended consequences. However, collaborative governance offers a way to address the sector’s complex challenges. By studying examples of collaboration in other areas — environmental conservation, health care, education, urban planning and disaster response —
the extractive sector can adopt best practices for its own purposes.
Rather than a top-down, siloed approach, collaborative governance involves working with a variety of stakeholders, such as local communities, government, industry and civil society groups. Collaborative governance is a pragmatic and effective approach to problem-solving and fosters transparency, inclusivity and adaptability by integrating a range of perspectives and expertise, culminating in effective and equitable policy-making.
Environmental impacts, social conflicts and a broad range of stakeholder interests are just a few of the challenges the extractive sector faces, making traditional top-down decision-making inadequate. The sector could incorporate collaborative governance in decision-making processes by adopting principles from Complex Adaptive Systems (CAS) theory. These principles include adaptability, use of local knowledge and decentralization to aid in balancing hard and fast regulations with on-the-ground realities, including playing a valuable role in conflict prevention.
Among the problems the sector faces are economic dependence on finite, depleting resources, evolving technology, social conflict, a shifting regulatory environment, uncertain global markets and the imperative to respect cultural and Indigenous rights. Thus, a key part of collaborative governance would be training local community leaders to advocate for their interests and to manage their resources responsibly.
Many other sectors offer valuable lessons in collaborative governance. For example, inclusive and shared decision-making in health care has produced better, more effective and tailored patient outcomes. Urban planning’s focus on sustainability can guide the extractive sector in managing environmental impacts and promoting community resilience.
Stakeholders in conservation and natural resource management, including government, organizations and Indigenous communities, already collaborate to establish protected areas, engage in wildlife management and work on sustainable land use. Collaboration in education encompasses school boards, parent councils and other stakeholders.
Disaster management and emergency response also have much to teach about collaborative governance. With NGOs, government, first responders and communities co-ordinating disaster preparedness, response and recovery efforts, disaster management has become much more effective.

International development is another field that successfully uses collaborative governance. Collaboration between governments, NGOs, donors and communities helps address poverty, infrastructure development and local social issues, with a focus on local ownership, capacity building and sustainable development.
The need for more collaborative approaches in the extractive sector is increasingly evident. New global standards demand collaboration, consultation and even consent from local communities, especially where Indigenous peoples are involved. Impact assessments, community consultations and benefit-sharing agreements are now the norm.
Collaborative governance is expanding in the extractive sector; thus it is essential to critically assess current practices, learning from collaboration in other sectors in order to adapt key methods to specific contexts in the extractive sector. A blueprint for future collaboration requires thoughtful reflection on what has worked, what has not and why.