| Abstract: | The author has identified a number of structural policy issues which adversely affect public sector enterprises involved in natural resource extraction. It is held that the various interactions between government policy and public management have created severe cross currents which impede the efficient and cost-efficient operation of these entities. This tends to promote a culture which encourages excessive production at the risk of premature exhaustion of the resource and diverts scarce development capital into marginal increments of production at the expense of other sectors of the economy. This transient influx of money is said to encourage overconsumption. The author does not recommend any facile solutions. The circumstances vary from country to country, as do the remedies. Policy and structural reforms can and have made a difference in specific instances and examples are cited of where improvements have been made. |
