What Explains the Ups and Downs of Resource Nationalism?
Aug 1, 2018 | 15:22 GMT
(AIZAR RALDES/AFP/Getty Images)
- Through resource nationalism — an attempt by a state to assert greater control over natural resources in its territory through mandates on global extractive industries — host countries seek to create value-added products and services and supply chains or capture assets.
- Over many decades, the balance of power has slowly shifted in the direction of host states as compared to global corporations.
- In the short- to medium-term, however, the strength of resource nationalism is likely to ebb and flow with global market cycles and local political cycles.
- Global geopolitical shifts are another conditioning factor, and China's rise has especially stoked worries in several countries about a loss of sovereignty.