Government Policies For Mineral Development And Trade

Minerals long have been important commodities in international trade. As an inevitable result, the governments of the world have employed a wide variety of programs that affect the flow of trade. Roughly speaking, we may distinguish between the desire of more developed countries (MDCs) like the United States, western Europe, and Japan to control imports of minerals and the concern of less developed countries (LDCs), like India, about exploiting and exporting their minerals. The terminology used to describe different countries and the classification of specific countries into groups is unsettled and often changing. The poorest countries have been characterized as backward, undeveloped, underdeveloped, and developing. The problem seems to be in selecting a term that is both accurate and polite. Less developed seems, for reasons outlined by Hagen [pp. 51-57], the most convenient term. The borderline between an LDC and an MDC is always open to dispute. Objective measures are difficult to develop because of deficiencies in basic data, and enormous conceptual problems arise in making valid comparisons from even good data [see Hagen, pp. 7-28]. Thus, policies of the MDCs can be evaluated chiefly by using a few basic arguments for protectionist attitudes towards international trade. In dealing with the LDCs, a more far-ranging evaluation that covers general economic policy goals, the role of foreign investment, and the indirect effects of trade is required. This duality breaks down when trying to deal with the depressed areas in an MDC; here the issues are more akin to those associated with problems in an LDC. Similarly, variants of arguments used in LDCs appear in debates about foreign investments in MDCs. The whole discussion of minerals in LDCs, moreover, has obvious implications for MDCs like Canada and Australia. They, too, must face problems about the best utilization of their resources. THE RESTRICTION OF MINERAL TRADE BY DEVELOPED COUNTRIES[a] At least to some extent, the world's leading industrial nations have intervened to control the inflow of minerals. Such regulation is particularly pronounced for energy. Both the United States and western Europe employ