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Resource Nationalism

Thousands Rally in Mongolia Over Foreign Mining Concessions (New York Times – March 30, 2016)

http://www.nytimes.com/

The Associated Press – ULAANBAATAR, Mongolia — A rare public protest in Mongolia’s capital on Wednesday drew thousands of demonstrators who criticized foreign mining concessions and demanded action to prop up the tottering economy.

More than 2,000 demonstrators in Ulaanbaatar’s Freedom Square also called for parliament to be dissolved and a new government formed over alleged corruption and the economic crisis battering the vast, landlocked nation.

Protesters say the mineral wealth that accounts for 94 percent of the nation’s exports has been exploited by foreign companies, with few benefits going to Mongolia’s 3 million people, one-third of whom live in poverty.

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Is Africa’s ‘resource nationalism’ just big business as usual? – by John Childs (The Conversation U.S. Pilot – May 14, 2015)

http://theconversation.com/us

Big mining firms in the Democratic Republic of Congo are worried. For the past decade they’ve made good money from the country’s huge reserves of cobalt, diamonds, gold and copper, and now the government wants to grab more of the action: a document leaked to Bloomberg reveals plans to raise royalties and profit taxes, and increase the state’s share in any new ventures.

This is so-called “resource nationalism” in action, and the DRC is far from alone in seeking greater economic control of its natural resources. The state is back, the theory goes, and it’s taking on the multinational. From Scotland to Namibia, Zambia to Ecuador, resource rich nations throughout the world are rhetorically reclaiming gas, oil and minerals as their own.

The trend is widely reported as the enemy of trade, investment and energy security alike. In the UK, for example, the Telegraph called it a “spectre” and government economists have labelled it as both a “threat” and “anti-competitive”.

On the other side of the coin, governments argue they are simply ensuring foreign businesses don’t unfairly benefit from resource extraction. Take Zambia, for instance. The landlocked African nation is a major copper exporter yet most of the population still lives below the poverty line. After the government looked to crack down on tax avoidance by multinational mining firms, one senior politician defended the move: “The situation is win on one side – only the shareholders are winning; the people of Zambia are still in abject poverty”.

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