Details
Original language | English |
---|---|
Article number | 101925 |
Journal | Resources Policy |
Volume | 70 |
Early online date | 26 Dec 2020 |
Publication status | Published - Mar 2021 |
Abstract
Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.
Keywords
- Global value chain, Linkage, Namibia, Oil and gas, Resource curse
ASJC Scopus subject areas
- Social Sciences(all)
- Sociology and Political Science
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Environmental Science(all)
- Management, Monitoring, Policy and Law
- Social Sciences(all)
- Law
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In: Resources Policy, Vol. 70, 101925, 03.2021.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Prospects and pitfalls of Namibia's oil and gas sector
AU - Scholvin, Sören
N1 - Funding Information: The field research carried out for this article was financed by the German Research Foundation (project number: 275355279).
PY - 2021/3
Y1 - 2021/3
N2 - Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.
AB - Namibia is an oil and gas frontier state. Expectations of a coming boom with ensuing positive effects for the entire economy are high. The author assesses the prospects of the Namibian oil and gas sector, drawing on the concept of ‘linkages’. Because the corresponding literature neglects political challenges, the author complements the linkage concept with the resource curse approach so as to elaborate on important pitfalls, advancing the state of the art in terms of theories. The empirical analysis is based on a survey of Namibian newspapers, a database and reports on elite capture related to oil and gas as well as 14 interviews with domestic and foreign companies, consultants and public authorities. It is shown that important economic benefits result from the oil and gas sector. They will further increase if large-scale extraction begins. Whereas many political downsides of resource booms do not apply to Namibia, the elite appear to have turned the licensing system for exploration into a means of self-enrichment. This implies that tremendous amounts of money that should have been available to the state – and thus to the Namibian society as a whole – have ended in private pockets.
KW - Global value chain
KW - Linkage
KW - Namibia
KW - Oil and gas
KW - Resource curse
UR - http://www.scopus.com/inward/record.url?scp=85098118133&partnerID=8YFLogxK
U2 - 10.1016/j.resourpol.2020.101925
DO - 10.1016/j.resourpol.2020.101925
M3 - Article
AN - SCOPUS:85098118133
VL - 70
JO - Resources Policy
JF - Resources Policy
SN - 0301-4207
M1 - 101925
ER -