Economic Impact of Sea-bed Mineral Resources Development in Light of the Convention on the Law of the Sea

In 1983, the Preparatory Commission for the International Sea-Bed Authority and the International Tribunal for the Law of the Sea appointed its officers, decided upon its structure and adopted a programme of work. In July of the previous year, the US Government announced that it would not sign the Convention on the Law of the Sea and thus would not participate in the deliberations of the Preparatory Commission. As part of the Texts adopted, Resolution II establishes a scheme for the Protection of Pioneer investment pending the entry into force of the Convention. This scheme is predicated on the philosphy embodied in the Convention in respect of the establishment of a resource policy for the development of sea-bed mineral resources and takes into account its basic component, the limitation of production. This article investigates the impact of future sea-bed mineral development on the affected economies of developing land-based producer states. It also reviews the mechanisms to be utilized to mitigate against possible adverse impacts and attempts to assess the extent to which these resources may be exploited in the medium term.