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Exploring local content in Guinea's bauxite sector: Obstacles, opportunities and future trajectories

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  • Wilhelm, Cindy
  • Maconachie, Roy

Abstract

In recent years, resource-rich developing countries have increasingly adopted Local Content Policies (LCPs) as a means of stimulating locally-driven, resource-based development. Such policies, which seek to catalyse development through the procurement of local goods and services in regions where mining and oil and gas production takes place, are now prevalent in some 49 countries around the world. Yet, in many cases they have been implemented with disappointing results. This article explores mining sector reforms that prioritise local content, and questions their effectiveness in the provision of inclusive resource-based development. Drawing upon the case of Guinea’s bauxite sector, where LCPs have been prioritised as the centrepiece of recent mining sector reforms, the paper critically explores the country’s current LCP trajectory, in the process examining both opportunities and obstacles to be surmounted. Given decades of state withdrawal under the years of structural adjustment and Guinea’s ensuing neo-liberal trajectory, we explore how mining companies and the government are currently responding to their changing roles in terms of LCP implementation. The article concludes by locating the lessons from Guinea within wider discussions that concern LCPs and mining sector reforms, in the process offering reflection on possible ways forward for minimising resource enclavity and fostering more inclusive forms of local economic development in sub-Saharan Africa.

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  • Wilhelm, Cindy & Maconachie, Roy, 2021. "Exploring local content in Guinea's bauxite sector: Obstacles, opportunities and future trajectories," Resources Policy, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:jrpoli:v:71:y:2021:i:c:s030142072030965x
    DOI: 10.1016/j.resourpol.2020.101935
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    References listed on IDEAS

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    1. Issabayev, Murat & Rizvanoghlu, Islam, 2019. "Optimal choice between local content requirement and fiscal policy in extractive industries: A theoretical analysis," Resources Policy, Elsevier, vol. 60(C), pages 1-8.
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    Cited by:

    1. Wilhelm, Cindy, 2023. "‘In Guinea, there are two types of mining companies’: An analysis of the diverse local content approaches of the bauxite mining companies in Guinea," Resources Policy, Elsevier, vol. 83(C).
    2. Mamoudou Camara, 2023. "Bauxite mining and economic growth in Guinea over the period 1986–2020: empirical evidence from ARDL and NARDL approaches," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 157-179, January.

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