1. SWISSAID’s ambition: Mitigating the resource curse

2. Why is commodity trading an issue? • NOC’s sell the citizen’s oil • Huge share of government revenues in developing countries • e.g. Angola: 7 x health budget (2010)

4. What can go wrong ? …. • NOC’s lack capacity / knowledge • Favoritism / bribery / fraud • Sales below market price

5. …. will go wrong (eventually) • Nigeria (NNPC) controversy  discretionary allocation of export rights  opaque crude swap contracts  import subsidy fraud  Where did the all billions go….? • NNPC challenged by Nigerian NGO to provide alldocuments re: deals with Swiss firms from 2010 to date

6. What can be done ? • More transparency  no perfect solution for the resource curse, but  precondition for mitigating governance risks  Dodd-Frank 1504, EU Directives, Canada

7. New EITI requirement 4. 1 (c):

8. What should Switzerland do ? • Accept its responsibility as the world’s largest commodity trading hub • legislate swiftly to achieve  transparent trading

9. Other issues • Consciousness of trading industry re: resource curse issues in developing countries • Supply chain due diligence  PEP problems / beneficial ownership • Sector Guidance for implementing UNGP