Ahead of the meeting of leaders of world’s major economies the G8, the British Prime Minister David Cameron announced the G8 and 15 developing countries have agreed to work together to make sure that “the poorest people benefit from their country’s natural resources, by improving the transparency of their extractive industries and land rights.”
The G8 which includes US, UK, Russia, Japan, Canada, Italy, Germany and France plays a big role in extractives industry in African countries.
Mr Cameron made the announcement during a panel session with African leaders at the Open for Growth on 15 June 2013. Of the 15 countries, 8 developing countries will be focused on improving the extractives sector while 7 are on land rights.
This seeming shift of G8 countries from aid to improving trade may be driven by various factors – increased Chinese penetration in African extractives industry and also the non-sustainability of the aid model for both receiving and donor countries as donor countries have been hit by the economic crisis.