LSE - Small Logo
LSE - Small Logo

Dipa Patel20

September 5th, 2018

For African governments to intervene is reasonable

0 comments

Estimated reading time: 5 minutes

Dipa Patel20

September 5th, 2018

For African governments to intervene is reasonable

0 comments

Estimated reading time: 5 minutes

Managing Director for Mining Shared Value and department alumnus, Jeff Geipel responds to Peter Leon’s recent editorial for the Financial Times 

4  September 2018   

………………

Peter Leon’s editorial “African nations must resist siren song of resource nationalism” (August 29) is a very problematic piece that cherry-picks outlier examples to attack what is a completely reasonable trend for African governments to intervene more in the mining sector to ensure increased benefits for their citizens. While there is no doubt that recent regulations being proposed or adopted in countries like South Africa and Tanzania are not in line with the empirical record of what works for economic development, the laissez-faire model that Mr Leon hopes for has also been a complete failure across the continent in terms of both growth and human development indicators. The DRC’s “investor-friendly” mining code that Mr Leon praises is one that saw the vast majority of the benefits of mining flow out of the country.

It is this kind of commentary that acts to push governments like South Africa to further harden their positions. African governments are far more likely to be swayed by objective analysis when it comes to fiscal and local content policies than by the hardline positions of law firms. Mining investors must accept that a persistent lack of meaningful development associated with mineral extraction in any developing country tends to push governments towards the very policies that Mr Leon opposes. A more balanced approach that does not condescend to governments is a far better strategy with mutual benefit.


Jeff Geipel is an Development Studies Alumnus and Managing Director for Mining Shared Value, Engineers Without Borders Canada, Toronto, ON, Canada.

This article was first published on the Financial Times.

The views expressed in this post are those of the author and in no way reflect those of the International Development LSE blog or the London School of Economics and Political Science.

About the author

Dipa Patel20

Posted In: Department Alumni | Featured | Topical and Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

RSS Justice and Security Research Programme

  • JSRP and the future
    The JSRP drew to a close in 2017 but many of the researchers and partners involved in the programme continue to work on the issues and theories developed during the lifetime of the programme. Tim Allen now directs the Firoz Lalji Centre for Africa (FLCA) at LSE where many of the JSRP research team working […]
  • Life after the LRA
    The JSRP reached the end of its grant in spring 2017 but several outputs from the programme are scheduled for publication in the coming months. The most recent of these is a new journal article from Holly Porter and Letha Victor drawing on their extensive research with JSRP in the Acholi region of northern Uganda.  The […]

RSS LSE’s engagement with South Asia

  • Extra-Judicial Killings in India: A Crisis of Justice, Faith and Public Morality?
    This post discusses extrajudicial killings in India, the consequent legal challenges they create, and the increasing normalisation of such encounters through pop culture and public acclamation. Gauri Kumar and Naina Bhargava highlight these arguments using specific examples, and present the existing response of the Supreme Court of India regarding extrajudicial killings.   Extrajudicial killings are […]
  • Celebrating Bangladesh at 50: A Positive Deviance
    LSE alumnus and Member of our Senior Advisory Board Ahmed Mushtaque Raza Chowdhury’s personal account of his journey in independent Bangladesh explains the triumphs of the nation against the odds, the challenges that lie ahead, and his own participation in it.           If someone asked me which year I would like to […]