By Stefano Casertano
Stefano Casertano explores the connections among the presence of strength average assets and the improvement of "local nationalism" within the generating areas. particularly, he applies a selected specialize in these situations the place such nationalism ends up in secession makes an attempt. The study relies on 8 case experiences in Bolivia, Sudan, Malaysia, Indonesia, China, Iran, Angola, and Nigeria.
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Additional info for Our Land, Our Oil!: Natural Resources, Local Nationalism, and Violent Secession
Nationalism ultimately rests on the demand for national sovereignty. Hence a second means of containing nationalism is by reducing this demand. Conditions that contain the demand for sovereignty include the establishment of indirect rule and other state institutions that are responsive to the distinctive values of national groups. A third means of containing nationalism consists in raising the costs of collective action. This strategy can be effective, at least for a certain time, even if 40 41 42 Ibidem, p.
This approach can be used by either: companies that are too small in scope and dimensions to leverage any other strategy; or by companies which simply prefer not to involve national governments on the agreements, even for limits prescribed by their public capital structures. In terms of impact on local communities, the extremes are represented by “isolation” and “development support”. It is important to notice how the choice might be a deliberate decision of the IOC, or it may be imposed by the central government.
Sachs uses a best practices list delivered by the IMF, originally intended for the management of foreign aid, and adapted to the effect of oil booms. Sachs is mostly concerned with the economic effects of oil rents management, and does not investigate the main research topic of the present research, related to the presence of extractive enclaves. The analysis is nevertheless useful, and has been leveraged to define the vertical effects of revenue management in the economy. Humphreys & Sandbu (2007) analyze the best practices related to the wellfunctioning of “Natural Resources Funds” (“NRFs”).