Transparency, Deep Sea Mining, and Good Governance

Unlike the first predicted deep-sea mining (DSM) boom 35 years, the public response to the re-emergent possibility of DSM is this time round is not entirely optimistic, with serious economic, social, and environmental concerns being voiced. In the intervening years, the troubling notion of the ‘resource curse’ has been popularized, whereby the economies of developing nations rich in natural resources (agriculture, minerals, and fuels), paradoxically appear to fare more poorly than their brethren who have fewer such resources. There have been a variety of explanations and counter-arguments regarding why the resource curse occurs, including how it can be ‘escaped’, and even some disagreement on whether it in fact does occur. Nevertheless, many commentators appear to agree that that the quality of governance is strongly implicated in the socioeconomic success, or failure, of these resource-dependent nations, and could indeed be the deciding factor. Unlike nations with diversified economies, the majority of the income from natural resource economies, in the form of royalties and rents, flows through national government; hence, good governance and fiscal management is of particular concern.