Extractive industry for sustainable development? Some reflections on the role of investment contracts in ensuring benefit sharing and community participation in natural resource governance

The chapter investigates the role of investment contracts in fostering ‘benefit sharing’ and ‘community participation’ in the extractive industry and, ultimately, sustainable development in the host state. With reference to conflict-affected or fragile settings, the chapter further investigates whether these contracts may also respond to the rationale of promoting economic stability and development, thereby contributing to peacebuilding. The chapter describes and classifies the different categories of contractual provisions such as those imposing upon foreign investors obligations in terms of local content, training of local workers, support for the economic, social and cultural development of the local community, and respect for the environment. Specific attention is devoted to the question as to whether these provisions are effectively enforceable by the host state in case of breach by the foreign company.