Mortgage & Property

New Insurance Professional

Family Office Bulletin

Mortgage Property

Insurance Professional

Family Office

Resource nationalism surges in 2020 as side effect of Covid-19

In 2020, 34 countries have witnessed a significant increase in the nationalisation of natural resources as a side effect of Covid-19, revealed the latest report by Verisk Maplecroft published late on Thursday.
The report recorded a surge in risk over the past year as measured by its Resource Nationalism Index and concluded that the economic impact of Covid-19 was the main factor aggravating an already growing tendency among governments.

Interventionism in the natural resource sector was particularly evident in countries dependent on minerals and hydrocarbons exports.

The report also forecast that nationalism would increase over the following two years as governments tried to claw back the financial losses incurred by the pandemic with the mining industry expected to bear the brunt of such measures.

Other reasons for increased nationalism, the report argued, would be another mining supercycle which would likely intensify nationalism in Africa and Latin America, which hold some of the largest producers of copper and iron ore.

The countries most at risk were deemed to be Zimbabwe, Liberia, Mexico and Argentina, among others.

Those countries were also the most likely to turn to indigenisation and direct expropriations with no or little compensation.

In Latin America, the main driver for resource nationalism usually comes from ideology or pressure from communities that host mining projects.

In Africa, it was likely that governments would take such measures due to governance shortcomings and not nationalist sentiment.

The report also said that, regardless of Covid-19, the trend towards rising resource nationalism would have continued deepening in 2021 anyhow, particularly in jurisdictions where interventionism delivers a political dividend.

This Week’s Most Read

  • An interview with the pub landlord that barred Sir Keir Starmer

    Footage from today shows Sir Keir Starmer’s entourage man handling Rod Humphris, pub landlord for the Raven of Bath Public house. In this exclusive interview,

  • Sir Keir Starmer in pub brawl?

    Predictions of scuffles in pubs came true today, with a landlord being ejected from his own pub by interlopers. Sir Keir Starmer had been listening

  • Haatch SEIS fund oversubscribed within 2 weeks

    Haatch Ventures quietly launched their first SEIS Fund in March, with a target raise of £1.5m.  This figure was reached within 2 weeks, and the

  • Sir Keir Starmer, pubs and COVID – taking the piss, not taking a piss..

    We thought you weren’t allowed into pubs these days? Incredible scenes erupted today outside the Raven Pub in Bath, as Sir Keir Starmer was confronted

  • Why Government support means there has never been a better time for sustainability start-ups

    When Glasgow hosts the United Nations Climate Change Conference in November, it will be more than two years since the UK signed into law its

  • Staycation Boom Could be Taxing for Landlords

    Furnished holiday lets offer tax breaks, but owners need to tread carefully. Soaring demand for holiday lets as the UK plans for a ‘staycation summer’

  • New financial advice service from Vanguard aimed at retirement savers

    Designed for investors saving for retirement, Vanguard Personal Financial Planning launches on the award-winning Vanguard UK Personal Investor platform – vanguardinvestor.co.uk/financial-advice. The service offers personalised

  • MainStreet Partners: does the ‘S’ in ESG have ‘middle child’ syndrome?

    Long overlooked in favour of its more obvious counterparts, last year saw investors turn a corner and beckon in ‘an era of social impact investing’,

  • Creating a sustainable future – A special supplement in conjunction with M&G | April 2021

    M&G Investments are one of the early adopters of ESG (environmental, social and governance) and impact investing strategies within their funds. In this IFA Magazine

  • The Coming Decade for Climate Solutions

    Randeep Somel, Fund Manager, M&G Climate Solutions Fund, is finding reasons to be cheerful as he uncovers some of the powerful drivers of change which

IFA Magazine

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine