Advertisement

Property, Politics, and Power: Theorising Political Risk in the Mining Industry

  • Daniel FeherEmail author
Chapter
Part of the The Political Economy of the Asia Pacific book series (PEAP)

Abstract

Political risks are critical variables for investors to consider when undertaking business in a globalised economy. Yet the concept itself remains under-theorised and, consequently, suffers from a lack of conceptual clarity. Attempts to define political risk thus far have failed to consider and analyse how the concept is theoretically grounded. This has led to a significant knowledge deficit and to a lack of consensus as to what constitutes the idea of political risk. This chapter addresses this deficit by exploring the theoretical nature of political risk. It examines the interrelated elements of property, politics, and power to develop a new understanding of how these elements underpin the idea of political risk. This chapter is, therefore, theoretical in nature. As such, it does not directly address risks, challenges, and opportunities facing the mining industry in the Asia-Pacific Region. Instead, it examines key ideas that inform the idea of political risk. It will be up to individual mining companies to adapt these abstract ideas to their individual circumstances.

Abbreviations

BIT

Bilateral Investment Treaty

TRIP

Trade Related Intellectual Property Rights

US

United States

References

  1. Bakan, J. (2004). The corporation: the pathological pursuit of profit and power. New York: The Free Press.Google Scholar
  2. Bauzon, K. (2000). Political forecasting and the Third World economies: a critical assessment. Paper presented at the Sixth Annual Meeting of the Global Awareness Society International, Montreal, 23-25 May 1997. http://journals.upd.edu.ph/index.php/kasarinlan/article/viewFile/1427/pdf_68. Accessed 23 August 2009.
  3. Becker, W., McClenahan, W. (2003). Market, the state and the Export-Import Bank of the United States: 1934-2000. Cambridge: Cambridge University Press.Google Scholar
  4. Boublikoff, A. (1935). Doing business with Russia. The North American Review, 239(3), 269-274.Google Scholar
  5. Bouchet, M., Clark, E., Groslambert, B. (2003). Country risk assessment: a guide to global investment strategy. Cornwall: Wiley Finance Series.Google Scholar
  6. Bremmer, I., Keats, P. (2009). The fat tail: the power of political knowledge for strategic investing. Oxford: Oxford University Press.Google Scholar
  7. Brewer, T. (1981). Political risk assessment for foreign direct investment decisions: better methods for better results. Columbia Journal of World Business, Spring, pp.5-12.Google Scholar
  8. Crick, B. (1964). In defence of politics. London: Penguin.Google Scholar
  9. Dahl, R. (1961). Who governs?: democracy and power in an American city. New Haven: Yale University Press.Google Scholar
  10. Drake, R., Prager, A. (1977). Floundering with foreign investment planning. Columbia Journal of World Business, 12(2), 66-77.Google Scholar
  11. Dowding, K. (1996). Power. Buckingham: Open University Press.Google Scholar
  12. Greene, M. (1965). Export Credit Insurance: its role in expanding world trade’, The Journal of Risk and Insurance, Vol. 32(2), pp. 177-193.Google Scholar
  13. Hay, C. (2002). Political analysis: a critical introduction. New York: Palgrave Macmillan.Google Scholar
  14. Halperin, G. (1940). Mexico shifts her foreign policy. Foreign Policy, 19(1), 207-221.Google Scholar
  15. Held, D. (1991). Editor’s introduction. In D. Held (Ed.), Political theory today. Stanford: Stanford University Press.Google Scholar
  16. Herz, J. (1941). Expropriation of foreign property. The American Journal of International Law, 35(2), 243-262.Google Scholar
  17. Herz, J. (1940). Review: the true facts about the expropriation of the oil companies’ properties in Mexico by government of Mexico. the facts and the law: Roscoe B. Gaither. The American Journal of International Law, 34(4), pp. 769-771.Google Scholar
  18. Heywood, A. (1994). Political ideas and concepts: an introduction. New York: St Martin's Press.Google Scholar
  19. Kobrin, S. (1979). Political risk: a review and reconsideration. Journal of International Business Studies, 10(1), 67-80.Google Scholar
  20. Knight, F. (1927). Risk and uncertainty in profit. Chicago: University of Chicago Press.Google Scholar
  21. Lasswell, H. (1936). Politics: who gets what, when, how. Cleveland: Meridian Books.Google Scholar
  22. Leftwich, A. (2004). The political approach to human behaviour: people, resources and power. In A. Leftwich (Ed.), What is politics? Cambridge: Polity Press, pp. 100-119.Google Scholar
  23. Liebeskind, J. (1996). Knowledge, strategy and the theory of the corporation. Strategic Management Journal, 17, 93-107.Google Scholar
  24. Lukes, S. (2005). Power: a radical view. 2nd edn. London: Palgrave McMillan.Google Scholar
  25. Meldrum, D. (2000). Country risk and foreign direct investment. Business Economics, 35(1), 33-40.Google Scholar
  26. Morgenthau, H. (1973). Politics among nations. 5th edn. New York: Alfred A. Knopf.Google Scholar
  27. North, D. (1995). The new institutional economics and Third World development. In J. Harriss, J. Hunter and C. Lewis (Eds.). The new institutional economics and Third World development (17-26). London: Routledge.Google Scholar
  28. O’Callaghan, T. (2016). Reputation risk and globalisation: exploring the idea of a self-regulating corporation. London: Edward Elgar. Forthcoming.Google Scholar
  29. Simon, J. (1985). Political risk forecasting. Futures, 17(2), 132-148.Google Scholar
  30. Spagnoletti, B. and O'Callaghan, T. (2011). Going undercover: the paradox of political risk insurance. Journal of Risk and Insurance, 5(2), 1-23.Google Scholar
  31. Truman, H. (1949). The President’s message to the congress on ‘Point Four' legislation. The Annals of the American Academy of Political and Social Science, 268(184), 184-187.Google Scholar
  32. Tsebelis, G. (1990). Nested games: rational choice in comparative politics. Berkeley: University of California Press, BerkeleyGoogle Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Centre for International Risk, School of Communication, International Studies and LanguagesThe University of South AustraliaAdelaideAustralia

Personalised recommendations