The Role of TNCs in the Extractive Industry of the United Republic of Tanzania

Tanzania is richly endowed with mineral resources. Since the mid-1990s, the mining sector has been the fastest-growing sector in the economy, following adoption of favourable investment policies with specific measures for the mineral sector. The influx of FDI is having a net positive development imp...

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Main Author:	Kweka, Josaphat
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Multinational Firms International Business F230 Mining, Extraction, and Refining: Other Nonrenewable Resources L720 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Exhaustible Resources and Economic Development Q320
Online Access:	http://hdl.handle.net/10986/4650

id	okr-10986-4650
recordtype	oai_dc
spelling	okr-10986-46502021-04-23T14:02:19Z The Role of TNCs in the Extractive Industry of the United Republic of Tanzania Kweka, Josaphat Multinational Firms International Business F230 Mining, Extraction, and Refining: Other Nonrenewable Resources L720 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Exhaustible Resources and Economic Development Q320 Tanzania is richly endowed with mineral resources. Since the mid-1990s, the mining sector has been the fastest-growing sector in the economy, following adoption of favourable investment policies with specific measures for the mineral sector. The influx of FDI is having a net positive development impact, but which needs to be nuanced. First, the impact on the industry in terms of export revenue, employment, technology, skills and knowledge, and Government revenue is significant in absolute and relative terms, given the low base from which the industry grew. Secondly, the impact on local communities is also notable, however, the size of such contributions is largely disproportionate to the revenues accruing to the TNCs and the social cost of the environmental degradation associated with the mining operations. Finally, There is a lack of substantial economy-wide multiplier effects, as would be suggested by the "trickle-down" theorem; but this is purely a policy failure argument in that the lack of significant linkages to the rest of the economy arises from weak supply capacity and an incomplete supply chain. Policy recommendations are made based on a careful assessment of the wider social, political and economic dimensions. 2012-03-30T07:29:03Z 2012-03-30T07:29:03Z 2009 Journal Article Transnational Corporations 10149562 http://hdl.handle.net/10986/4650 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Tanzania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Multinational Firms International Business F230 Mining, Extraction, and Refining: Other Nonrenewable Resources L720 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Exhaustible Resources and Economic Development Q320
spellingShingle	Multinational Firms International Business F230 Mining, Extraction, and Refining: Other Nonrenewable Resources L720 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Exhaustible Resources and Economic Development Q320 Kweka, Josaphat The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
geographic_facet	Tanzania
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Tanzania is richly endowed with mineral resources. Since the mid-1990s, the mining sector has been the fastest-growing sector in the economy, following adoption of favourable investment policies with specific measures for the mineral sector. The influx of FDI is having a net positive development impact, but which needs to be nuanced. First, the impact on the industry in terms of export revenue, employment, technology, skills and knowledge, and Government revenue is significant in absolute and relative terms, given the low base from which the industry grew. Secondly, the impact on local communities is also notable, however, the size of such contributions is largely disproportionate to the revenues accruing to the TNCs and the social cost of the environmental degradation associated with the mining operations. Finally, There is a lack of substantial economy-wide multiplier effects, as would be suggested by the "trickle-down" theorem; but this is purely a policy failure argument in that the lack of significant linkages to the rest of the economy arises from weak supply capacity and an incomplete supply chain. Policy recommendations are made based on a careful assessment of the wider social, political and economic dimensions.
format	Journal Article
author	Kweka, Josaphat
author_facet	Kweka, Josaphat
author_sort	Kweka, Josaphat
title	The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
title_short	The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
title_full	The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
title_fullStr	The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
title_full_unstemmed	The Role of TNCs in the Extractive Industry of the United Republic of Tanzania
title_sort	role of tncs in the extractive industry of the united republic of tanzania
publishDate	2012
url	http://hdl.handle.net/10986/4650
_version_	1764392257147895808

The Role of TNCs in the Extractive Industry of the United Republic of Tanzania

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