While corporate social responsibility (CSR) is important to economic

development and baseline human rights in countries dependent on extractive

industry revenues, failures in governance-such as the absence of basic

services like health care and electricity- require new strategies and incentives

to encourage governments to play their traditional role more effectively.

Political economic theories of the "resource curse" see the breakdown of a

sense of government accountability to its people as one of the more destructive

aspects of excessive reliance on natural resource rents. The authors look to

recent innovations such as transparency projects that can reinvigorate a sense

of government accountability, among other positive outcomes. The authors

argue that both mandatory and voluntary models of CSR could have an

adverse impact on sustainable development so long as they focus exclusively

on the role of the corporation rather than the on ways corporate investment

might be used to create incentives for a more effective state role.