Korinek: Mineral Resource Policies for Growth and Development: Good Practice Examples

From the Introduction:

[E]xporting countries use export restrictions on industrial raw materials to achieve a variety of stated policy objectives, including:

  •  Increasing revenue, in particular government revenue coming from the extractive industries.
  •  Offsetting exchange rate impacts caused by substantial exports of a small number of raw materials that are potentially volatile.
  •  Fostering spillovers to other sectors, particularly in order to promote the development of downstream or upstream industries.
  •  Controlling illegal exports or other activities, in response to concerns over lack of effective governance.
  •  Enhancing environmental protection, or protection of citizens’ health.
  •  Attempting to realise optimum mineral extraction levels, when conditions are deemed to create an incentive to extract too rapidly.

However, it was shown in Chapter 2 that export restrictions are not necessarily effective tools for achieving these stated policy goals and are in most cases not the most efficient way of doing so. Many countries with large mining sectors and important natural resource reserves prefer to regulate mining operations using alternative approaches that do not rely on border policies, but which seek to promote longer-term development and economic well-being by other means.

 

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