The adoption of Local Content (LC) policies is one of the best known strategies for diversifying production and maximising the benefits from the extractive sector in countries that are rich in natural resources. Strategies include mechanisms such as job creation and technology transfer.
However, evidence shows that the best results come from those strategies which focus on strengthening the industrial base and on creating the conditions for national industries to provide services. These compare favourably with strategies focused on short-term proposals such as job creation. In addition, the existence of a favorable business environment and well-designed legal frameworks are key elements in boosting local content.