Catalog Home Page

Regulating for local content: Limitations of legal and regulatory instruments in promoting small scale suppliers in extractive industries in developing economies

White, S. (2017) Regulating for local content: Limitations of legal and regulatory instruments in promoting small scale suppliers in extractive industries in developing economies. The Extractive Industries and Society, 4 (2). pp. 260-266.

[img]
PDF - Authors' Version
Embargoed until 18 August 2019.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Link to Published Version: http://dx.doi.org/10.1016/j.exis.2016.08.003
*Subscription may be required

Abstract

Many governments are increasingly eager to ensure resource-based investments lead to broad-based economic growth through local content policies, legislation, and regulatory instruments. However, it is unclear how effective these instruments are. This paper presents the findings of a review into the policy, legal, and regulatory framework for mining and the small-scale supply sector. It identifies the issues of major concern and presents the specific dimensions of business environment reform affecting the use of local, small-scale suppliers by extractive industries. Largely focusing on Africa, this research focuses on Nigeria, Ghana, Mozambique and South Africa. The review found that without external impetus, extractive companies generally have little regard for local content. However, in practice most existing local content instruments enable non-compliance and can also be a barrier to investments characterized by long-term, high-cost operations that are vulnerable to international commodity fluctuations. The development of local content instruments requires a good understanding of the extractive industry supply chains (large and small), and a balance of policy, legal, industrial development/support elements, and an on-going close interaction between governance institutions and entities directly and indirectly engaged in the industry.

Publication Type: Journal Article
Murdoch Affiliation: Sir Walter Murdoch School of Public Policy and International Affairs
Publisher: Elsevier
Copyright: © 2016 Elsevier Ltd.
UNSD Goals: Goal 12: Responsible Consumption and Production
URI: http://researchrepository.murdoch.edu.au/id/eprint/34791
Item Control Page Item Control Page