Linkages to manufacturing in the resource sector: The case of the Angolan oil and gas industry

This paper discusses the current state and future prospects of backward production linkages to the manufacturing sector in the Angolan oil and gas industry. The paper finds that local value-added links are currently limited to labour and to a lesser degree in basic services. However, there is a realistic and strategic potential for local manufacturing linkages to expand in the oilfield services sector of the industry, which in turn can stimulate industrial development. For this to be achieved, the factors that are currently constraining the expansion and deepening of linkages have to be addressed, namely, a weak local content strategy, a weak local skills and industrial base and the integration of industrial and oil sector policies.     

Backward linkage development in the South African PGM industry: A case study

Backward linkages refer to the various inter-firm relationships connecting an industry with its supply chain. Demand–supply interactions between producer firms and suppliers of original equipment, strategic inputs, components and specialised services have played an important role in the evolution of the South African mining sector, contributing indirectly to employment creation, new business growth and expansion, improved efficiency of mining operations, and new knowledge generation. This paper presents a case study of backward linkage development in the South African platinum group metals (PGM) industry and draws on the findings from a quantitative and qualitative analysis of the sector undertaken in 2007. A profile of the supply chain is provided and an assessment made of the strength and sustainability of existing linkages.     

What determines the breadth and depth of Zambia's backward linkages to copper mining? The role of public policy and value chain dynamics

This paper investigates the dynamics of upstream linkages development to copper mining in Zambia. The breadth and depth of the local mining supply chain was deeply shaped by policies adopted in the 1990s under the Structural Adjustment Programme. These policies succeeded in attracting much-needed FDI in the mining sector, including Chinese and Indian FDI, but had a negative impact on the level of value-addition undertaken by local suppliers. In the post-privatisation era, the dynamics of the local supply chain suggest that supply firms' upgrading and sales growth were determined by firm ownership and value chain governance. In fact, forward linkages to buyers other than Chinese and Indian mining companies, and backward linkages to parent companies and technology providers were critical in supporting supply firms' success in the mining value chain.     

“One thing leads to another”—Commodities,linkages and industrial development

With a particular focus on low income economies in SSA, this paper addresses the nature and determinants of linkages from the commodities sectors and challenges the received view that enclave development is an inherent characteristic of resource extraction, particularly in the hard and energy commodities sectors. It argues that there has been a steady increase in linkage development and that there are significant opportunities for deepening this process. The opportunities may be greater for backward than for forward linkages, particularly in the minerals and energy sectors. In making this case, this Discussion Paper draws on the experience of high income countries which have resource intensive economic structures, the geographical specificity of many resources and the growing interest of large resource extracting firms in outsourcing the production of inputs which are outside of their core competences and in supporting local production of some inputs, it sets out a general model of linkage development which distinguishes between win–win and win–lose outcomes.     

Assessing corporate–community involvement strategies in the Nigerian oil industry: An empirical analysis

The desire of oil companies operating in the Niger Delta to secure their social license to operate, and address their community development obligations, has led in recent years to the adoption of corporate social responsibility (CSR) policies and strategies. Drawing on quantitative and qualitative data collected in host communities within the Niger Delta in Nigeria, the paper compares the effectiveness of two different corporate–community involvement strategies. The evidence suggests that while the corporate–community foundation model has certain advantages over the in-house community investment model, both approaches suffer from a common shortcoming that limits the impact of oil companies’ efforts on community development in their host communities. The paper concludes by exploring the implications of the research findings for corporate–community involvement in the Nigerian oil industry.     

The mining industry in the European Union: Analysis of inter-industry linkages using input–output analysis

Input–output modelling is a useful tool in policy analysis and economic planning. This methodology is used to detect the inter-industry linkages known as forward and backward linkages. Examination of these measures provides one mechanism for identifying “key” or “leading” sectors. The main objective of this paper is to measure the linkages of the mining and quarrying industry in the European Union (EU) and to determine if any of the industry subsectors can be considered key sectors. The paper shows that three subsectors can be considered key sectors: the mining of coal and lignite and extraction of peat in Germany; mining of metal ores in Sweden; and other mining and quarrying in Austria, Denmark and Spain. These sectors are more stimulated by overall industry growth than other sectors and have greater impacts in terms of investment expenditures on the national economy than other sectors. The values of the forward and backward linkages show that the mining and quarrying is an industry that would be stimulated by an increase in a regional economy's production more than other sectors, while an increase in the mining and quarrying industry's output would not stimulate this regional economy more than an increase in other sectors.     

Characteristics of environmental problems in Nigeria and management prospects

Summary Nigeria, a rapidly urbanizing and industrializing society, is currently faced with many environmental problems. Through the analysis of what Kassas (1985) referred to as the Three-systems, that is, the technosphere, biosphere and sociosphere, of the Nigerian environment, a number of substantive and procedural problems are characterized.The findings include the causes and nature of such problems, including their complexities on the one hand, and management strategies on the other. On a more germane level, this study shows that governmental action and policies seldom reflect a sound understanding and impact on the problems. Governmental action, moreover, produces anad-hoc coping mechanism where and when necessary. A comprehensive environmental planning/management strategy is suggested in the last section of the paper along with the pre-requisites for its success.Mr Adefemi Olokesusi is a Research Fellow at the Nigerian Institute of Social and Economic Research, Nigeria.     

A review of the Nigerian petroleum industry and the associated environmental problems

Nigeria has abundant deposits of oil and natural gas and their exploitation has improved the economy substantially, but with serious environmental costs. Severe ecological damage has occurred in the Niger Delta area where most of the oil industries are based. Statutory rules and regulations for environmental protection applicable to the oil industry in Nigeria appear to be generally inadequate and ineffective. So far, air pollution has not been properly addressed. Natural gas is still being flared from many oil wells, with serious air pollution problems and a waste of this resource. The legal control of air pollution in the light of the ongoing operations of liquified natural gas (LNG) and compressed natural gas (CNG) projects is advised along with other measures for environmental quality, control and the conservation of resources.     

Norway's offshore petroleum industry

During the past decade, Norway has become an important oil and gas producer. Annual production is six times national consumption. Development policies of the national government have been cautious, and future policies will probably follow a similar pattern. The government recently opened offshore areas poleward of 62°N latitude, a decision likely to have a significant impact on Norway's future as an oil producer. Norway maintains a tight reign on foreign oil company participation, domestic downstream processing of crude, oil company taxation and oil revenue investment within the national economy. Norway's large inflow of oil-related capital investments and production revenues have contributed to significant inflation and to changes in local labour supplies. Norway has always used its petroleum industry to further the country's overall development goals, a policy that will continue in the years ahead.     

The view from below: ‘lock-in’ and local procurement in the African gold mining sector

Through linkage creation, commodity extraction has the capacity to support local industrial production and capabilities building. Drawing on the experience of supplying inputs into the East African gold mining industry, this paper examines the constraints experienced by local suppliers arising from the purchasing procedures of large mining corporations and specialist construction companies contracted to construct these mines. Lead firms become locked-in to particular ways of working which minimise the opportunities that local suppliers have in providing products and services. After reviewing the situation for local mining suppliers in East Africa, the paper examines ways in which lead firms, the suppliers themselves and others (governments and industry associations) can better support local supplier involvement.     

Inclusive municipal solid waste management policy in Nigeria: engaging the informal economy in post-2015 development agenda

The problem of municipal solid waste has remained intractable in Nigeria despite the state’s central role in municipal solid waste management (MSWM). Policy and reforms of the MSWM system have invariably excluded the informal economy, with this exclusion frequently reinforced by uncritical implementation of neo-liberal development policies. Yet, the informal economy fortuitously remains active in solid waste collection, recycling, and disposal. This article is the aggregate outcome of an 8-year multi-stakeholder engagement in MSWM in Nigerian cities. It draws on insights from first-hand qualitative engagement with informal waste workers, interviews with key stakeholders, policy documents, and relevant literature to situate the Nigerian informal waste economy within current international development discourse. While highlighting the implications of social acceptance and inclusion of the waste economy in post-2015 MSWM and development policy, the study notes the lack of an articulate policy on MSWM in Nigeria and canvasses a specific policy to integrate the ubiquitous informal waste economy in MSWM. The paper suggests that inclusion per sé is central to the sustainable development goals (SDGs), and argues that an inclusive MSWM policy in Nigeria is desirable as it maps onto the SDGs which aim to improve lives in the post-2015 development era.     

Nigerian Supreme Court and ownership of offshore oil

This article discusses the decision of the Supreme Court of Nigeria on the constitutional provision dealing with the sharing of revenues derived from natural resources located within the states of the Federation, the ‘derivation principle.’ Although the case relates to the interpretation of a constitutional provision, the arguments of the parties suggest that the real battle was — and still is — about the ownership and control of Nigeria's offshore oil. The article details the legal history and precedents as well as constitutional provisions relevant to the case. Disagreements arose over legal questions such as the seaward boundaries of littoral states (from which oil revenues are derived), and whether a distinction can be made between offshore and onshore oil revenues in applying a 13% constitutionally prescribed derivation principle. The article shows that, in its judgment, Nigeria's Supreme Court relied heavily on rules of international law, while failing to apply existing Nigerian laws and constitutional provision, and argues that the decision might have been different had the court investigated and invoked the legislative history of the provision in question, as required in Nigerian law. Furthermore, it is argued that the court was wrong to disregard the provision of the law which had abolished any distinction between onshore and offshore natural resources in the application of the derivation principle. The article concludes that the legal tug of war is set to continue for some years.     

我国危险废物处置收费政策的问题与建议

我国危险废物处置收费政策在十多年的发展历程中逐步建立健全,促进了危险废物处置行业的发展壮大。本文基于对我国各省份危险废物处置收费政策的定价主体、分档方式、收费标准、调整情况等制定和执行状况的梳理分析发现,各省份以不同形式出台了危险废物处置收费政策,然而,重要内容缺失、动态调整滞后、有效监管不足等问题较为普遍。针对这些问题,文章提出了因地制宜健全收费政策、科学开展处置价格核算、加快建立动态调整机制、实施部门联动管理监督等建议,可为完善我国危险废物处置收费政策提供参考。     

Mandatory planning for environmental innovation: evaluating regulatory mechanisms for toxics use reduction

This paper analyzes the Massachusetts Toxics Use Reduction Act (TURA), evaluating what TURA has achieved, how it has been implemented, how it motivates firms to change and how its underlying principles might be strengthened to better support innovation for toxics use reduction. Through this analysis recent debates are engaged about the potentials and limitations of using regulation to promote innovation for the environment. The analysis here shows that TURA is distinct from existing regulatory programmes in how it requires firms to self‐evaluate and plan for process improvements, supports implementation through technical assistance and focuses on pollution prevention rather than control. Mandatory planning, new mechanisms of accountability and improved processes of learning have all been critical to TURA's success in motivating firms to innovate for the environment. Taken together, these factors have supported incremental innovations in industry that may point the way toward policies to support even greater environmental improvements.     

Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market

This paper reviews the restructuring of the Asia-Pacific iron ore market in the wake of the rise of the Chinese steel industry. Prior to the 2000s, this market was characterised by two key features—high firm-level concentration on both the producer and consumer sides, and price determination through annually negotiated benchmark pricing between Australian mining and Japanese steel firms. However, owing to rapid growth in the Chinese steel industry and its emergence as the region's principal iron ore consumer, the Asia-Pacific iron ore market has been dramatically restructured during the last decade. This process has been accelerated since 2005 by Chinese governmental resource security policies, which have sought to address current record high iron ore prices through the use of foreign investment to sponsor new market entrants and the formation of an import cartel amongst the Chinese steel firms. This paper evaluates how these policies have driven restructuring in the Asia-Pacific iron ore market, through an analysis of the growth of China's steel industry, Chinese resource security policies aimed at lowering iron ore import costs, and their effects upon the regional market's ownership structure and price determination mechanisms. It argues that while Chinese investment and cartelisation policies have catalysed significant changes to the ownership and pricing structures of the Asia-Pacific iron ore market, they have carried only mixed benefits for the Chinese steel industry's resource security.     

Policies for tin exporters

The ‘restructuring’ of production and marketing is now an important part of less developed countries' (LDCs) policies to increase their gains from primary commodity exporting. Analysis of structural change in the tin industry shows that considerable increases in real income have been achieved by taxation and by equity restructuring. Specialist foreign tin companies have been replaced in part by major mining multinationals, however, whose bargaining power is stronger. Investment appraisals suggest that foreign companies in Asia have not been taxed excessively, but that more could be done to aid local, labour-intensive mining.     

The birth and death of a local initiative: Challenges of and lessons from the 'Bakassi' Vigilante Group in Southeastern Nigeria

Violent crime has plagued Nigerian society. It is in this context that some traders in the southeastern part of the country put together the Bakassi Boys—a security apparatus to parallel the Nigeria Police. The Bakassi attracted both praise and criticism. In this paper, I review the Bakassi phenomenon as a local initiative that tried to integrate elements of the traditional cosmology and ways of policing in response to the escalation of crime. The Bakassi being a child of crisis, there were flaws in their operation. By exploring the lessons that one can learn from the Bakassi experiment and outlining the challenges that it poses, one might hope to harness the lessons of a local initiative that failed in order to respond better to the socio-political issues that engineered its emergence.     

Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa

This paper critically reflects on the challenges of engaging, proactively, in Corporate Social Responsibility (CSR) in oil-rich sub-Saharan Africa. Most of the region's oil production takes place in enclave-type environments offshore and in countries ruled by autocratic governments which generally exert minimal pressure on companies to embrace CSR. With companies having little sense of who to target in their local economic development policies and programs, there is always a possibility of ‘offshore CSR’ – recognized here as potentially-effective ideas for improving social welfare that linger within the enclave and never fully materialize – surfacing. The aim is to conceptualize and broaden understanding of the challenge of developing CSR programs in these settings, where there are no clear linkages to communities or local economies more generally.     

石油天然气行业应对温室气体减排政策及措施

积极减排温室气体应对气候变化已经成为石油天然气行业的共识。文章介绍了2011年以来最新的国际和国内应对气候变化的政策环境,分析其对我国石油天然气行业的影响,特别强调国务院《"十二五"控制温室气体排放工作方案》对石油天然气行业的引导作用。在此基础上还提出积极参与行业碳减排政策研究、注重低碳经济发展规划、抓住低碳经济重点发展领域、积极呼应碳金融和碳交易的发展趋势、注重天然气应用技术开发、加强余热余压回收节能等发展低碳经济的建议。     

Using forest guards to protect a biological reserve in Costa Rica: one step towards linking parks to people

The paper examines a forest guard system protecting Monteverde Cloud Forest Reserve in Costa Rica. Using field observation, interviews and content analysis of records, the study determines the major threats facing the reserve from the local population. These threats, which include hunting, squatting and logging, are dealt with by the guards not just by creating barriers but by the guards as linkages among the many participants in the region. Community, institutional, legal and ecological linkages are identified, described and measured. The community linkage is recognized as particularly important because the Reserve's protection will be greatly enhanced if the community itself becomes ‘the guards’ and protects the Reserve. Policy recommendations are made based on the results.