Resource Corridors —positive externalities—

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Presentation transcript:

Resource Corridors —positive externalities— Mark Henstridge Chief Economist, Oxford Policy Management World Bank, Pre-Indaba Cape Town, February 2013

A framework: firms and governments Firms: responsibilities Government: Policy issues Local security, environment, human rights Macro-fiscal policy PFM: public investment Private investment & jobs Education, skills & jobs Local footprint Paying taxes Infrastructure Buying local Content Employment and training February 2013 © 2013 Oxford Policy Management Ltd

A framework: firms and governments Firms: responsibilities Government: Policy issues Local security, environment, human rights Macro-fiscal policy PFM: public investment Private investment & jobs Education, skills & jobs Local footprint Paying taxes Infrastructure Buying local Content Employment and training Resource corridors February 2013 © 2013 Oxford Policy Management Ltd

A framework: firms and governments Firms: responsibilities Government: Policy issues Local security, environment, human rights Macro-fiscal policy PFM: public investment Private investment & jobs Education, skills & jobs Local footprint Paying taxes Infrastructure Buying local Content Employment and training Resource corridors Jobs February 2013 © 2013 Oxford Policy Management Ltd

Case study: Vale in Brazil Ferro Carajás Infrastructure development in the mid-1980s Dual-use rail More recently: Collaborative efforts to prioritise and fund infrastructure investments, Vale support to municipal capacity Challenge of integrating initiatives across municipalities Ferro Carajás February 2013 © 2013 Oxford Policy Management Ltd

© 2013 Oxford Policy Management Ltd Case study: Lao PDR Opportunities – if coordinated: Integration with regional development plans, and: Coordination on utilities development, means that: Infrastructure can support broader economic activity… but: Challenges of capacity Achievements Mines contributed to public infrastructure Open access infrastructure Local business set up supply hubs for mines February 2013 © 2013 Oxford Policy Management Ltd

February 2013