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Resource Governance

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Resource Governance

InstitutionClaim Cited

Botswana's diamond developmental state

Botswana converted diamond discovery into public capability through state ownership of mineral rights, repeated negotiation with De Beers, the 50–50 Debswana venture, professional economic administration, development planning, and fiscal restraint. Diamond revenue financed infrastructure, education, health, and social protection instead of an enclave alone, while capital-intensive mining, inequality, minority dispossession, weak diversification, and falling natural-diamond demand reveal the sharp limits of a capable state organized around one finite rent.

How can a newly independent state capture and invest mineral rent without surrendering operating expertise, allowing private extraction to become an enclave, or consuming a finite windfall as current income?

InstitutionClaim Cited

PDVSA's institutional hollowing

Venezuela turned a professionally autonomous national oil company into a direct instrument of executive, fiscal, social, and political action; the change redistributed oil income but fused roles, expelled expertise, weakened reinvestment and oversight, and left the state more vulnerable when prices, production, finance, and sanctions turned against it.

How can a state make a national oil company answer to democratic purposes without dissolving the technical, financial, and evidentiary boundaries that let it keep producing for the public?