10 Local Content Policies in the Energy Transition Era …
317
creating autocracy within a country.
22 Countries like Nigeria, Equatorial Guinea, Angola, Venezuela, Azerbaijan and Brazil are among the few
economies that leaders have used local content policies to retain power.
Thirdly, local content policies are used to maximize social welfare in host
communities since host communities have public goods such as roads
and rudimentary infrastructure, etc.
23 The host communities cannot
gain directly from the oil and gas operations without local content
policies that set mandatory targets for foreign investors to adhere to.
In this chapter, local content is defined as ‘the administrative, legislative
and judicial government intervention into the extractive industry value chain
to create provisions for both domestic goods and services as well as the domestic
labour force’.
24
Local content is implementable in three ways, the fundamental
or conventional type of local content policy is the national content
policy. This typology of local content policy avails provisions for the
whole country.
25 Most resource-rich countries, such as Norway, Brazil,
Nigeria, Tanzania, Kenya, Uganda and Mozambique, have adopted and
implemented the national content policy. The second typology is the
community content policy; this typology brings about provisions for
the host communities that surround the extractive industry operations.
26
Community content policy is an affirmative action that gives preference
to the neighbouring communities in the provisions for goods and services
as well as the domestic labour force. Lastly, the regional content policy,
this typology of local content policy has not proliferated among resourcerich countries because it raises numerous questions of sovereignty over
22 Ovadia, Jesse Salah. “The making of oil-backed indigenous capitalism in Nigeria.” New
Political Economy 18.2 (2013): 258–283.
23 Warner, Michael. “Community content: The interface of community investment programs
with local content practices in the oil and gas development sector.” Overseas Development
Institute (ODI) Briefing Note 9 (2007).
24 Authors personal development.
25 Nwapi, Chilenye. “A survey of the literature on local content policies in the oil and gas
industry in East Africa.” SPP Research Paper 9/16 (2016).
26 Warner, Michael. “Community content: The interface of community investment programs
with local content practices in the oil and gas development sector.” Overseas Development
Institute (ODI) Briefing Note 9 (2007).
317
creating autocracy within a country.
22 Countries like Nigeria, Equatorial Guinea, Angola, Venezuela, Azerbaijan and Brazil are among the few
economies that leaders have used local content policies to retain power.
Thirdly, local content policies are used to maximize social welfare in host
communities since host communities have public goods such as roads
and rudimentary infrastructure, etc.
23 The host communities cannot
gain directly from the oil and gas operations without local content
policies that set mandatory targets for foreign investors to adhere to.
In this chapter, local content is defined as ‘the administrative, legislative
and judicial government intervention into the extractive industry value chain
to create provisions for both domestic goods and services as well as the domestic
labour force’.
24
Local content is implementable in three ways, the fundamental
or conventional type of local content policy is the national content
policy. This typology of local content policy avails provisions for the
whole country.
25 Most resource-rich countries, such as Norway, Brazil,
Nigeria, Tanzania, Kenya, Uganda and Mozambique, have adopted and
implemented the national content policy. The second typology is the
community content policy; this typology brings about provisions for
the host communities that surround the extractive industry operations.
26
Community content policy is an affirmative action that gives preference
to the neighbouring communities in the provisions for goods and services
as well as the domestic labour force. Lastly, the regional content policy,
this typology of local content policy has not proliferated among resourcerich countries because it raises numerous questions of sovereignty over
22 Ovadia, Jesse Salah. “The making of oil-backed indigenous capitalism in Nigeria.” New
Political Economy 18.2 (2013): 258–283.
23 Warner, Michael. “Community content: The interface of community investment programs
with local content practices in the oil and gas development sector.” Overseas Development
Institute (ODI) Briefing Note 9 (2007).
24 Authors personal development.
25 Nwapi, Chilenye. “A survey of the literature on local content policies in the oil and gas
industry in East Africa.” SPP Research Paper 9/16 (2016).
26 Warner, Michael. “Community content: The interface of community investment programs
with local content practices in the oil and gas development sector.” Overseas Development
Institute (ODI) Briefing Note 9 (2007).