OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Export Restrictions on Raw Materials

Experience with Alternative Policies in Botswana You or your institution have access to this content

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Author(s):
Jane Korinek
Publication Date
14 Jan 2014
Bibliographic information
No.:
163
Pages
50
DOI
10.1787/5jzb6v86kz32-en

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Demand for non-renewable natural resources is forecast to rise steadily over the coming decades. Underlying trends of long-term rising demand and falling supply of mineral resources will inevitably increase pressure on prices and intensify competition for scarce resources. This can create a substantial opportunity for development for minerals-rich countries. However, as suggested by the "resource curse" debate, broad-based economic development based on the extractive industries is far from assured. History suggests that not all countries, in particular many of those outside the OECD area, have benefitted economy-wide from their mineral resources: good governance and good policies are essential to benefit from their huge potential growth.

Some countries have successfully regulated their mining sectors without resorting to highly distortive policies such as export restrictions. One such country is Botswana. This paper examines some of the policies in place in Botswana that have contributed to the governance and management of its substantial minerals sector. Lessons are drawn for minerals-rich countries keen to manage their raw materials sectors for increased economy-wide growth.

Keywords:
Botswana, extractive industries, sovereign wealth funds, SWF, gemstones, mining, royalties, beneficiation, resource curse debate, diamonds, De Beers, taxation, Debswana, Pula fund, regulation, export restrictions, South African Customs Union, SACU, Diamond Trading Company, tax revenue management, sustainable budget index
JEL Classification:
  • O24: Economic Development, Technological Change, and Growth / Development Planning and Policy / Trade Policy; Factor Movement Policy; Foreign Exchange Policy
  • O55: Economic Development, Technological Change, and Growth / Economywide Country Studies / Africa
  • Q32: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Exhaustible Resources and Economic Development
  • Q37: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Issues in International Trade
  • Q38: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Government Policy