A systems thinking approach to corruption and natural resources in the context of sustainability

Abstract: With growing awareness of the current climate crisis, it has become better recognized that natural resource management has global as well as local implications.  Discourse on the importance of sustainability has followed. Natural resource sectors have been known as areas prone to corruption risks due to the usually high revenues involved. Despite the absence of a universally agreed upon definition, it is in general recognized that corruption undermines social and economic development and can impede sustainable resource management. This research sets out to explore the dynamics contributing to corruption risks in natural resource sectors, with an emphasis on renewable resources, and how such risks can be addressed. To shed light on the research question, a qualitative case study approach was chosen, comparing fisheries in Iceland, arable soils in Ukraine and forestry in Romania. A total of 40 semi-structured interviews were conducted with various stakeholders recruited through snowball sampling. The interviews were coded and then analysed by generating causal loop diagrams, a qualitative mapping approach in the field of system dynamics. The main results from this study suggest that the resource sectors under study all transformed towards economies of scale, facilitating the consolidation of large vertically integrated companies with increased economic efficiency demand. The resulting inequality between large and smaller actors in the sectors seems to increase perceived risk of both corruption and unsustainable management practices in all our cases. Public institutions´ capacity and capabilities to monitor resource sectors need adequate resources, else corruption risks can increase because of perceived lack of monitoring. To alleviate corruption risks, transparency in resource management can strengthen accountability and promote sustainability. However, focus on transparency as a policy tool can be misplaced in instances where higher-level intervention points are needed to ensure sustainable resource management, as solutions are context dependent.