The decision chain of natural resource management: Part I

Discovery of natural resources is difficult; this is evidenced by the fact that in the typical poor country, if we look at how many resources it had discovered per square kilometer and compare that with how many resources the typical rich country had discovered per square kilometer, the poor countries had only discovered about one-fifth as much. This is largely due to random geological processes of millions of years ago. To properly discover and manage resources, one should discover the resources, then tax them, then deal properly with the locality where the resources are coming out. On discovery, public geological information and international public money (aid money) can be used to prospect the geology of poor countries. Taxation will take the "rents" (the difference between costs, including reasonable return on capital, and the total revenues generated from those resources), and these taxation systems which must be unique to the resource sector. Finally, national rights and concerns in regards to natural resources and their challenges and benefits must be balanced with local environment and community rights and concerns.

Watch Part II.

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