Critical Minerals & Resource Nationalism 2.0: Why the Policy is more Critical than the Mineral

“Critical minerals” are driving a new wave of resource nationalism around the globe. But to what extent is the current approach to critical minerals aligned with the achievement of long-term developmental goals? How novel are the policies currently implemented, and to what extent do they replicate previous extractivist patterns, including environmental devastation? For whom are the minerals critical, and for how long?

 

This paper provides a comprehensive examination of the role of critical minerals in driving resource nationalism, drawing lessons from different illustrative cases to highlight the opportunities and challenges facing a renewed resource-based development agenda in the 21st century. It highlights some of the common policy tools witnessed around the globe before highlighting some of the risks, common misconceptions, and factors of success.

 

We argue that, although nations should strive to gain sovereign control over their natural resources, considerable risks exist in attempts to leverage mineral abundance for socio-economic development. Strong technological foresight capabilities, inclusive social governance, robust environmental regulations, and a careful coordination of critical minerals strategy within a broad, sustainable, and equitable industrial policy are critical for long-term success.

 

Read the full Working Paper.