Post #112

💡Resource Nationalism Index [ BOTSWANA ] In the second part ofour "Resource Nationalism Index" series, we take a closer look at Botswana - a country whose economy still rests on two pillars: diamonds and copper. Right now, Botswana is going through a rough period due to low diamond prices. Yet, compared with many neighbors, its government still defends national interests fairly well — although it is clearly too fond of laying down all the basic requirements for companies in individual concessions, but not in the law. So, what does resource nationalism look like in Botswana? 🔸"Process It First" – 3/10 – The government negotiates some domestic processing, but the requirements are not solidly specified in the law. 🔸 "Share With the State” – 6/10 – The state-owned Okavango Diamond Company is entitled to buy an increasing share of diamond output — yet again, this exists by contract, not by law. 🔸 “We’re in Too!” – 6/10 – The state may acquire up to 15% of new mining ventures, and if it doesn’t, up to 24% must be offered to local investors - but nothing of it comes for free. 🔸 “The Money's Yours, the People Are Ours" – 4/10 – Social obligations and local spending are written into individual agreements, but somehow never mentioned in the law. 🔸“Just Pay Up" – 7/10 – Royalties reach 3% for copper and 10% for diamonds - relatively high by regional standards, though still without a progressive scale. 🔸"You Come – You Build" – 4/10 – There’s no uniform legal duty to invest in community development - once more only “understandings” negotiated case by case. 🔸“We’ll Do It Ourselves” – 4/10 – Tax breaks exist for investors willing to build local processing facilities, but the incentives are rarely decisive. 🔸“Come Here, You Bastard!” – 8/10 – Illegal mining is mostly confined to small-scale gold diggers; diamonds and copper remain under tight control. Final score is 5.3 out of 10 — respectable, but hardly revolutionary, mainly due to the government's love of fixing the working conditions of companies in contracts rather than laws. #Botswana#ResourceNationalism Devils Below