326
R. S. Muhongo
the efficiency of existing firms. In an economy with inefficient firms,
a high degree of required local content thwarts competition’.
50 Local
content policy avails a deliberate preference to the domestic suppliers,
as some oil and gas-rich countries would emphasize on the domestic
suppliers meeting international standards in terms of price, quality and
delivery. Most developing countries treat the local content policy as an
affirmative action that automatically integrates the domestic supplier into
the oil and gas value chain.
10.5 The Norwegian and Nigerian Case
Study: Lessons to Be Drawn
for Emerging Resource-Rich Countries
The chapter has so far explained local content policies and how these
policies are applicable within a resource-rich economy. For the purposes
of developing a proper analysis of the abstract explanation of local
content policies, it is important to make a case study on two (2) countries. Two reasons lead the research to make these two case studies. Firstly,
three (3) of the selected countries are emerging oil and gas producers,
while the other two (2) are mature oil and gas economies. This will facilitate understanding of what drives the adoption of local content policies
at different stages of the extractive industry value chain. The countries selected are Norway, Brazil, Kenya, Tanzania and Uganda. Norway,
Brazil are mature economies that have implemented local content policies since the 1970 s.
51 While Kenya, Uganda and Tanzania are nascent
or emerging oil and gas producers.
52 It is clear that lessons fare to be
drawn from mature local content regimes and economies to the nascent
economies so as to reap the full benefits of implementing such policies.
50 Hufbauer, Gary Clyde, Jeffrey J. Schott, and Cathleen Cimino-Isaacs. Local content
requirements: A global problem. Vol. 102. Columbia University Press, 2013.
51 Brekke, Josefine Smith. “Machine learning effects on the Norwegian oil and gas industry.”
Diss. 2020.
52 Steinhauer, Ineke, et al. “Advisory review of the environmental and social impact assessment
for the East Africa Crude Oil Pipeline (EACOP)/Uganda” (2019).
R. S. Muhongo
the efficiency of existing firms. In an economy with inefficient firms,
a high degree of required local content thwarts competition’.
50 Local
content policy avails a deliberate preference to the domestic suppliers,
as some oil and gas-rich countries would emphasize on the domestic
suppliers meeting international standards in terms of price, quality and
delivery. Most developing countries treat the local content policy as an
affirmative action that automatically integrates the domestic supplier into
the oil and gas value chain.
10.5 The Norwegian and Nigerian Case
Study: Lessons to Be Drawn
for Emerging Resource-Rich Countries
The chapter has so far explained local content policies and how these
policies are applicable within a resource-rich economy. For the purposes
of developing a proper analysis of the abstract explanation of local
content policies, it is important to make a case study on two (2) countries. Two reasons lead the research to make these two case studies. Firstly,
three (3) of the selected countries are emerging oil and gas producers,
while the other two (2) are mature oil and gas economies. This will facilitate understanding of what drives the adoption of local content policies
at different stages of the extractive industry value chain. The countries selected are Norway, Brazil, Kenya, Tanzania and Uganda. Norway,
Brazil are mature economies that have implemented local content policies since the 1970 s.
51 While Kenya, Uganda and Tanzania are nascent
or emerging oil and gas producers.
52 It is clear that lessons fare to be
drawn from mature local content regimes and economies to the nascent
economies so as to reap the full benefits of implementing such policies.
50 Hufbauer, Gary Clyde, Jeffrey J. Schott, and Cathleen Cimino-Isaacs. Local content
requirements: A global problem. Vol. 102. Columbia University Press, 2013.
51 Brekke, Josefine Smith. “Machine learning effects on the Norwegian oil and gas industry.”
Diss. 2020.
52 Steinhauer, Ineke, et al. “Advisory review of the environmental and social impact assessment
for the East Africa Crude Oil Pipeline (EACOP)/Uganda” (2019).