With consumption of natural resources continuing to increase worldwide,
resource-rich countries in Africa, Asia and Latin America are positioned
to play an increasingly crucial role supplying the demand, and reaping
increased revenues, for decades to come. This Guide presents a concise
introduction to the different Latin American policy models applied to
promote development in the oil, mining and gas sectors, while at the
same time, laying the foundation for sustainable economic development.
It outlines the results of different policy models, and underlines the
importance of taking into account regional contexts, including cultural,
environmental and political differences.
•The success of a particular investment model is strongly correlated to
the type of extractive sector to which it is applied. In the mining
sector, private investment has led development efforts, while in the
hydrocarbon sector an investment model where the state is dominant, or
at least present, has shown good results.
•Successful state participation in the extractive industries sector has
resulted in institutional improvements, with state-owned enterprises
playing a particularly important role in the production of hydrocarbons.
•Foreign direct investment (FDI) flows to extractive industries seem to
change to reflect different tax and royalty schemes. In the mining
sector in particular, some Latin American countries have succeeded in
attracting foreign investment that complies with international social
and environmental standards.
Damonte, G.; Glave, M. ELLA Guide: Maximising Investment and Rent Capture Through Extractive Industries Investment Policies: the Latin American Experience. ELLA, Practical Action Consulting, Lima, Peru (2012) 7 pp.