This paper explores resource nationalism, particularly for energy and metal and mineral supplies, and the potential implications for the UK.
Resource nationalism is defined as anti-competitive behaviour designed to restrict the international supply of a natural resource. Population growth, the uneven worldwide distribution of resources, and governance issues can lead to resource nationalism.
Resource nationalism is likely to have a greater effect on global terms of trade when a natural resource is only produced in few countries. In these markets, countries can affect global prices for raw materials and have most to gain from resource nationalism. In these cases, there is potential for the main producers (companies or countries) to act together to manipulate global prices.
The risk of resource nationalism may be higher for some lesser-known metals and minerals than resources such as oil, coal and gas.