The natural resource trap
Subtitle: private investment without public commitment
By: edited by William Hogan and Federico Sturzenegger.
Contributors: Hogan, William W.; Sturzenegger, Federico.
Publisher: MIT Press
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Number of pages: 519
ISBN-13: 9780262013796
Subjects: Natural resources -- Government policy; Natural resources -- Law and legislation; Investments, Foreign; Public-private sector cooperation
Description: "Volatility in commodity prices has been accompanied by perpetual renegotiation of contracts between private investors in natural resource production and the governments of states with mineral and energy wealth. When prices skyrocket, governments want a larger share of revenues, sometimes to the point of nationalization or expropriation; when prices fall, larger state participation becomes a burden and the private sector is called back in. Recent and newsworthy changes in the price of oil (which fell from an all-time high of $147 in mid-2008 to $40 by year's end) are notable for their speed and the steepness of their rise and fall, but the up-and-down pattern itself is not unusual. If the unpredictability of commodity prices is so predictable, why do contracts not allow for this with mechanisms that would provide a more stable commercial framework?

In The Natural Resources Trap, top scholars address this question in terms of both theory and practice. Theoretical contributions range across a number of fields, from contract theory to public finance, and treat topics that include taxation, royalties, and expropriation cycles. Case studies examine experiences in the U.K., Bolivia, Argentina, Venezuela, and other parts of the world."--Pub. desc.
Notes: Includes bibliographical references and index.