Designing Local Content Policies in Mineral-Rich Countries
The paper, focused on designing local content policies in mineral-rich countries, is part of a set of expert documents to substantiate the IGF Guidance for Governments on local content policies, released in July 2018.
Many resource-rich countries have not succeeded in sufficiently using their mining sector as a stepping stone for broader economic transformation.
As a result, although the industry is a significant revenue contributor, its linkages with the rest of the economy remain rather weak. To address this, and under mounting pressure to deliver more inclusive outcomes, governments are increasingly taking regulatory measures with the objective to increase the use of domestic factors of production in the mining sectors, and provide more prospects for the local economy to benefit from the mining industry. Local content policies are one such strategy.
This document is meant to provide some clarity on the key characteristics and challenges of local content policies. It does not attempt to propose one definition of local content. It is meant to provide a better understanding of the various types of instruments used, as currently contained in existing legal and institutional frameworks and based on country specific experiences. The purpose is to highlight the prerequisites necessary to inform a decision whether or not to design local content policies, and guide readers to what types of policies could best be adopted, given the specific policy environment in place in their respective countries.
Participating experts
You might also be interested in
Ecuador Referendum Rules Out ISDS Return, Underlining Public Support for a Sustainable Path
Ecuador has voted to allow international arbitration and investor–state dispute settlement (ISDS) in its treaties and agreements. But the risks that initially made them turn away from this outdated model remain.
Strategic Environmental Assessment for the Mining Sector
Strategic environmental assessments (SEA) are an essential tool for policy-makers working to develop a sector-wide vision for responsible mining.
Financial Benefit-Sharing Issues for Critical Minerals: Challenges and opportunities for producing countries
Exploring nuances in the key features of critical minerals and the new challenges and opportunities they present to fiscal regulation.
IGF Case Study: Leveraging Technologies for Gender Equality in Mining Communities
How can sharing technological infrastructure support gender equality and serve the broad betterment of mining communities?