Willis Mining Markets Review

Debunking the myths of resource nationalism

Willis Mining Markets Review

"Taking a comprehensive view that includes the political, social, economics, and commercial considerations around the issue, we can cut through some of the myths and identify the realities of resource nationalism"
Nader Mousavizadeh, Oxford Analytica CEO

With a dedicated mining sector advisory service, Oxford Analytica are well placed to support businesses in understanding the political, economic, and environmental developments that have an impact on mining and metals.

This month, as part of a report published by Willis on mining markets around the world, our CEO Nader Mousavizadeh presents and analyses five myths and five realities on the subject of resource nationalism:

  • Myth 1. “Resource nationalism is only found in emerging economies”
  • Myth 2. “Resource nationalism = expropriation”
  • Myth 3. “BEE and indigenisation measures are tools of resource nationalism”
  • Myth 4. “Social development spending shields firms against resource nationalist policies”
  • Myth 5. “It’s all about getting a bigger share”

  • Reality 1. Resource nationalism can be win-win
  • Reality 2. Resource nationalism is a cyclical phenomenon
  • Reality 3. Resource nationalism is contagious
  • Reality 4. Resource nationalist rhetoric does not necessarily translate into political reality
  • Reality 5. More national resource will become ‘strategic’ as a result of global conditions