Resource nationalism is miners' number one fear and major threat to global security — report
Resource nationalism is one of the main causes of the current commodity prices instability and it is threatening global security, warns London-based Chatham House in its latest report.
The think-tank highlights the effects of a recent increase in expropriations and investment disputes over resource assets in emerging economies.
It also alerts that “escalating trade wars over resources could overwhelm the dispute settlement regime at the World Trade Organisation.”
As an example, the reports points that a handful of countries produce the bulk of global resources. The three largest producers for 19 commodities account for 56% of total production. And a few countries, such as Chile and Peru for copper; or China, Australia and Brazil for iron ore and bauxite, mostly dominate the production of metals.
Chatam House suggests new methods to decrease the impact of commodity price shocks. For instance, it proposes that grain and oilseed producers —such as the US— should buy options from their biofuel industries, letting them divert food back to human consumption when prices rise.
The full report can be downloaded here.
Learn more about the how resource insecurity has come back with a vengeance in this interactive web site, put together by Chatam House.