Allowing citizens to benefit from resource exploitation and giving them a voice in how to distribute benefits is also critical. There are two different models for distributing natural resources monies to citizens. In Alaska, the state-run Alaska Permanent Fund disburses roughly $8,000 each year to every family for discretionary use. In Norway, oil revenues are used to provide social services. The Norway model is perhaps more open to corruption, given that government officials must manage the natural resource monies. Nevertheless, it may be more appropriate for the developing world because it is more likely to result in essential investments in healthcare, education, and infrastructure necessary for human and economic development.

Resource exploitation must also meet certain predetermined environmental standards. Fortunately, environmentally friendly technology is available and increasingly employed. For example, companies are using “offshore” technology to drill in the Peruvian jungle, with drilling sites being operated as if they were islands: workers and supplies are flown in by helicopter to avoid access roads. Nevertheless, companies often fail to utilize such technology. The best strategy for enforcing environmental standards would thus involve a combination of surveillance on the part of civil society, an agreement within the Organization for Economic Cooperation and Development (OECD) that would require companies that operate in OECD countries to adhere to pre-determined standards, and rigorous environmental prerequisites for development loans. Transparency is also essential. Recently, ten investment funds managing more than US$600 billion of assets declared support for transparency, arguing that a lack of transparency is a business risk because it makes companies vulnerable to accusations of complicity in unethical practices.

Finally, it is crucial to remember that those countries that have successfully used natural resources to usher in human development, most notably Norway and Iceland, are among the world’s most transparent democracies. To a significant extent, successful resource exploitation in terms of human development depends on creating successful democracies, so that citizens have the opportunities to demand transparency, adherence to environmental standards, and benefits from oil and mineral revenues. The effectiveness of citizens, governments, and civil society in promoting democracies is the most critical test to successful resource exploitation that the developing world faces today.