Export Restrictions on Raw Materials: Experience with Alternative Policies in Botswana

Jane Korinek ()

No 163, OECD Trade Policy Papers from OECD Publishing

Abstract: 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: beneficiation; Botswana; De Beers; Debswana; Diamond Trading Company; diamonds; export restrictions; extractive industries; gemstones; mining; Pula fund; regulation; resource curse debate; royalties; SACU; South African Customs Union; sovereign wealth funds; sustainable budget index; SWF; tax revenue management; taxation (search for similar items in EconPapers)
JEL-codes: O24 O55 Q32 Q37 Q38 (search for similar items in EconPapers)
Date: 2014-01-14
New Economics Papers: this item is included in nep-afr and nep-int
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