OECD Trade Policy Papers
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.
- ISSN: 18166873 (online)
- https://doi.org/10.1787/18166873
Export Restrictions on Raw Materials
Experience with Alternative Policies in Botswana
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: diamonds, gemstones, royalties, South African Customs Union, mining, Diamond Trading Company, extractive industries, tax revenue management, Pula fund, SACU, Botswana, beneficiation, De Beers, regulation, Debswana, taxation, SWF, resource curse debate, sovereign wealth funds, sustainable budget index, export restrictions
JEL:
Q32: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Exhaustible Resources and Economic Development;
O55: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: Africa;
Q38: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Nonrenewable Resources and Conservation: Government Policy;
Q37: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Nonrenewable Resources and Conservation: Issues in International Trade;
O24: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy / Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
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