Economic aspects of subsurface use in northern regions of resource type

В настоящее время в экономическом развитии не только отдельных регионов, но и всей страны особую роль играет состояние добывающей промышленности, в основном топливно-энергетических ресурсов и цветных металлов. В Российской Федерации доходы, получаемые за счет добычи и экспорта минерального сырья, в стоимостном выражении составляют около 80% российского экспорта. В статье рассматриваются экономические аспекты недропользования в северных регионах ресурсного типа, специализирующихся на добыче высоколиквидных минеральных ресурсов: нефти, газа, угля, алмазов и золота с целью выявления сильных и слабых сторон. Анализируются минерально-сырьевой и производственный потенциалы добывающей промышленности регионов. Методом математической статистики оценивается уровень зависимости социального развития регионов от добывающей промышленности по шкале Чеддока. На основе факторного анализа и оценки экономических составляющих недропользования и региональной статистики за 2010-2020 гг. выявлены высокий уровень ресурсной ориентированности экономики, капиталоемкости и фондоемкости добывающей промышленности и моноспециализация экономики во всех северных регионах ресурсного типа, высокий уровень зависимости социального развития от добывающей промышленности в Республике Саха (Якутия), Ханты-Мансийском – Югра и Ямало-Ненецком автономном округах. Выделены негативные и позитивные факторы устойчивого развития добывающей промышленности, также определены ключевые моменты перспективного развития экономики северных регионов ресурсного типа. At present, the state of the mining industry, mainly fuel and energy resources and non-ferrous metals, plays a special role in the economic development of not only individual regions, but also the whole country. In the Russian Federation, revenues derived from the extraction and export of mineral raw materials in value terms account for about 80% of Russian exports. The article discusses the economic aspects of subsurface use in the northern resource-type regions specializing in the extraction of highly liquid mineral resources: oil, gas, coal, diamonds and gold in order to identify strengths and weaknesses. The mineral raw materials and production potentials of the mining industry of the regions are analyzed. The method of mathematical statistics evaluates the level of dependence of the social development of regions on the extractive industry on the Cheddock scale. Based on a factor analysis and assessment of the economic components of subsurface use and regional statistics for 2010-2020, there was revealed a high level of resource orientation of the economy; capital intensity of the mining industry and monospecialization of the economy in all northern resource-type regions; a high level of dependence of social development on the extractive industry in the Sakha Republic (Yakutia), Khanty-Mansiysk-Yugra and Yamalo-Nenets Autonomous Okrugs. The negative and positive factors of the sustainable development of the mining industry are highlighted, and the key points of the prospective development of the economy of the northern regions of the resource type are also identified.

Managing the Natural Resource Sector: A Case Study of the Liquefied Natural Gas (LNG) project in Papua New Guinea

<p>This research is a study of the Papua New Guinea (PNG) Liquefied Natural Gas (LNG) project, the country’s biggest single investment in the extractive industry. The focus of the research is on understanding the impact and effect of the project on the country and in particular the distribution of the revenue and the influences on the distribution of the revenue. An additional area that was also looked at was the financial transparency and accountability of these distributions. The research arose in direct response to the fact that Papua New Guinea (PNG), which is well endowed with a wide range of natural resources, does not seem to use its natural wealth effectively to improve the human development of its people. The exploitation of these resources has in fact been associated with recurring fiscal and monetary crises, concentrations of investment in the minerals and petroleum sector, no improvement in the basic public services, and corruption at all levels of government. There has also been a persistent rising level of socio-economic inequality in the immediate communities hosting major resource projects and increasing poverty in the urban areas and pockets of rural areas. The research took a case study approach and used a multi-disciplinary lens by looking at the political, economic and anthropological literature and gleaning from them propositions about the influences on the distribution of revenues. In particular the case was used to investigate propositions related to the “resources curse” hypothesis that, in the absence of good governance, developing country governments are at risk to economic and fiscal mismanagement and corruption from the availability of resource rents from extractive industries. The research gathered evidence from people from project-specific documents made available largely through social media, accessible budget papers, parliamentary proceedings (Hansard), Acts of Parliament, government policy edicts, statements and press releases and websites of key government departments, state owned enterprises and the companies involved in the project, and some interviews of key informants. The Extractive Industry Transparency Initiative (EITI) reports on PNG were also specifically examined. The project has been exporting LNG now since 2014. While the construction of the project had a significant effect on economic growth, wages and prices and the exchange rate, the longer-term effects are more contestable. Returns to the economy and government revenues have been lower than forecast due to lower prices but also the effect of tax concessions and debt servicing leading to flows offshore larger than forecast. The government and landowners were making decisions based on a flawed projection and information to the extent that the government has been unable to sequester any revenues in a Sovereign Wealth Fund. Continued volatility in petroleum prices has affected government budget planning but overoptimistic forecasting of revenues including from the PNG (LNG) project, particularly in 2014-16, led to ballooning deficits. For short-term political reasons, government budgeting has tended to over-commit to new spending during the commodity booms and be forced in the downswings into cutbacks damaging to public services and investment or to rapid increases in broadly defined public debt. Budgets also pre-committed project revenues to new public expenditure project. The key point was the lack of attention being given to the downside risks of revenue projections supplied by the operator. The politics of access to resource rents have played out in the form of relations between local landholders and the government and in how the executive power has been able to structure access to project revenues nationally. The project also has had a destabilizing effect on local society where local-national relations have influenced the national politics of resource rent distribution and conversely have been put under pressure over contestation of the project impacts and access to benefits. Further, landholders have to date not received their full financial entitlements from the project despite the promises being made by successive governments since 2009. There has been ongoing discontent amongst landholders. The lack of transparency about the use of project revenues, particularly those not accruing directly to the Public Account, has contributed to this discontent. The research also found the few key project agreements have been officially released but much information has its way into the public domain via social media. Budget-related information has been more plentiful but the EITI has been hampered by poor financial reporting by public organisations receiving and managing revenues. When project information does enter the public and government is forced to acknowledge it, it can influence how government conducts its business and makes decisions.</p>

Managing the Natural Resource Sector: A Case Study of the Liquefied Natural Gas (LNG) project in Papua New Guinea

<p>This research is a study of the Papua New Guinea (PNG) Liquefied Natural Gas (LNG) project, the country’s biggest single investment in the extractive industry. The focus of the research is on understanding the impact and effect of the project on the country and in particular the distribution of the revenue and the influences on the distribution of the revenue. An additional area that was also looked at was the financial transparency and accountability of these distributions. The research arose in direct response to the fact that Papua New Guinea (PNG), which is well endowed with a wide range of natural resources, does not seem to use its natural wealth effectively to improve the human development of its people. The exploitation of these resources has in fact been associated with recurring fiscal and monetary crises, concentrations of investment in the minerals and petroleum sector, no improvement in the basic public services, and corruption at all levels of government. There has also been a persistent rising level of socio-economic inequality in the immediate communities hosting major resource projects and increasing poverty in the urban areas and pockets of rural areas. The research took a case study approach and used a multi-disciplinary lens by looking at the political, economic and anthropological literature and gleaning from them propositions about the influences on the distribution of revenues. In particular the case was used to investigate propositions related to the “resources curse” hypothesis that, in the absence of good governance, developing country governments are at risk to economic and fiscal mismanagement and corruption from the availability of resource rents from extractive industries. The research gathered evidence from people from project-specific documents made available largely through social media, accessible budget papers, parliamentary proceedings (Hansard), Acts of Parliament, government policy edicts, statements and press releases and websites of key government departments, state owned enterprises and the companies involved in the project, and some interviews of key informants. The Extractive Industry Transparency Initiative (EITI) reports on PNG were also specifically examined. The project has been exporting LNG now since 2014. While the construction of the project had a significant effect on economic growth, wages and prices and the exchange rate, the longer-term effects are more contestable. Returns to the economy and government revenues have been lower than forecast due to lower prices but also the effect of tax concessions and debt servicing leading to flows offshore larger than forecast. The government and landowners were making decisions based on a flawed projection and information to the extent that the government has been unable to sequester any revenues in a Sovereign Wealth Fund. Continued volatility in petroleum prices has affected government budget planning but overoptimistic forecasting of revenues including from the PNG (LNG) project, particularly in 2014-16, led to ballooning deficits. For short-term political reasons, government budgeting has tended to over-commit to new spending during the commodity booms and be forced in the downswings into cutbacks damaging to public services and investment or to rapid increases in broadly defined public debt. Budgets also pre-committed project revenues to new public expenditure project. The key point was the lack of attention being given to the downside risks of revenue projections supplied by the operator. The politics of access to resource rents have played out in the form of relations between local landholders and the government and in how the executive power has been able to structure access to project revenues nationally. The project also has had a destabilizing effect on local society where local-national relations have influenced the national politics of resource rent distribution and conversely have been put under pressure over contestation of the project impacts and access to benefits. Further, landholders have to date not received their full financial entitlements from the project despite the promises being made by successive governments since 2009. There has been ongoing discontent amongst landholders. The lack of transparency about the use of project revenues, particularly those not accruing directly to the Public Account, has contributed to this discontent. The research also found the few key project agreements have been officially released but much information has its way into the public domain via social media. Budget-related information has been more plentiful but the EITI has been hampered by poor financial reporting by public organisations receiving and managing revenues. When project information does enter the public and government is forced to acknowledge it, it can influence how government conducts its business and makes decisions.</p>

Priority areas of state regulation of the industry in the context of sustainable development

In the article it is proved, that the economic development of any industry depends on the results of the economic activities of the enterprises that are part of it. Based on the available statistical data, we proposed a model for diagnosing the results of the mining industry and conducted a comparative analysis of the results of the study in the context of economic activities. Given the high integration of mining enterprises into the system of intersectoral relations, this problem cannot be solved within the framework of one industry. Therefore, it is proved that, taking into account the existing experience, it requires complex measures: accounts receivable are formed as a result of late payment for delivered products. The main consumers of the extractive industry are: the processing industry, the supply of electricity, gas, air conditioning and transport. They consume more than 87% of the products of this industry in the intermediate consumption market and are the most debtors; on the other hand, these regions are also the largest suppliers of raw materials, materials and semi-finished products for the extractive industry. Therefore, in the end, the accumulation of current accounts payable at the enterprises of the extractive industry for the delivered goods and services is the least desirable for them.

Mining Waste Complex Research and Development of Technologies for their Use in Georgia

In 1996, Georgian mining and extractive industry moved to a new stage as a result of the adoption of a new law on subsoil, which prepared grounds for the development of a legislative framework regarding the use of country’s subsoil and created new economic settings for the industry. Mining and extractive industry play a significant role in Georgia’s sustainable economic development. From 1999 through 2020, the output value of the industry (excluding non-renewable energy resources: coal, natural gas and oil products)is estimated at of 5,6 billion Lari (GEL). The majority of deposits of mineral resources in Georgia are mainly small and medium in size. Considering the current rate of their exploitation, within 15-20 years their majority will be exhausted. Over time, the country’s economy will face a serious problem as it will need to import raw materials. It is therefore important to look for feasible technologies for the application of unconventional raw materials, namely secondary raw materials that come with essential mineral resources. This will allow to maintain the potential of mineral resources of the country. The work presents the outcomes of the Mining Institute’s current studies on qualitative, quantitative and assimilative technologies and possibilities of the application of mining waste as secondary natural resources. Research methodology is based on the principles of Green Economy that implies linking mining and extractive industry to circular economy, aiming at rational assimilation of natural resources by applying the 3R (reduce, reuse and recycle) approach. Within the frames of the study, technologies were developed for obtaining construction, glass and porcelain raw materials (from spoiled rock layers stored and extracted from operating open pit mines of the Chiatura manganese and Bolnisi ore deposits/queries), along with those for manufacturing products with such materials.

The Prospects and Challenges of Economic Liberalization in Reducing Poverty and Inequality in Indonesia

This article discusses whether economic liberalisation policies have succeeded in alleviating poverty and inequality in Indonesia. In addition, this article aims to provide alternative policies to strengthen Indonesia’s bargaining position in international trade forums by shifting the extractive industry to knowledge-based industries and fixing the fragile social protection system when faced with COVID-19. This article is written descriptively and analytically based on various data, such as literature, planning documents, news reports, and other sources. Despite the prospect of economic liberalisation, the findings show Indonesia has three main problems: statistical data that does not reflect reality, overlapping regulations, and weak governance. This article offers several policy recommendations that need improvement based on the “Going for Growth” framework. Keywords: economic liberalisation, poverty alleviation, inequality, social protection, and going for growth Tulisan ini mendiskusikan apakah kebijakan liberalisasi ekonomi berhasil dalam pengentasan kemiskinan dan ketimpangan di Indonesia. Selain itu, tulisan ini bertujuan untuk memberikan alternatif kebijakan dalam rangka memperkuat posisi tawar Indonesia dalam forum perdagangan internasional dengan menggeser industri ekstraktif ke industri berbasis pengetahuan, sekaligus membenahi sistem perlindungan sosial yang rapuh ketika dihadapkan pada COVID-19. Tulisan ini ditulis secara deskriptif dan analitis berdasarkan dukungan dari berbagai data, seperti literatur, dokumen perencanaan, laporan berita, dan sumber lainnya. Meskipun terdapat prospek dari liberalisasi ekonomi, temuan menunjukkan bahwa Indonesia memiliki tiga masalah utama: data statistik yang tidak mencerminkan realitas, regulasi yang tumpang tindih, dan lemahnya tata kelola pemerintahan. Tulisan ini menawarkan beberapa rekomendasi kebijakan yang perlu ditingkatkan berdasarkan kerangka berpikir “Going for Growth”. Kata kunci: liberalisasi ekonomi, pengentasan kemiskinan, ketimpangan, perlindungan sosial dan going for growth