Introduction
The 2021 National Budget identifies a successful local content policy, LCP, as required for converting projected petroleum windfall revenues into sustained economic differentiation and growth; combined with economic diversification and development. I have addressed this topic at great length before, paying particular attention to two seminal studies; namely UNCTAD’s, 2013 and the World Bank’s 2013. These two studies are devoted to evaluating and advancing research on lessons to be learned based on global experiences with local content requirements, LCRs, and public policies in the oil and gas sector. Regrettably, space does not permit a repeat of this exercise here.
Findings UNCTAD
For readers’ convenience Schedule 1 below summarizes the five main findings listed in the UNCTAD 2013 study. These findings reference: focus on firm capacity building, competitiveness and value-added for the economy; transparency, accountability and a level playing-field; realism and adaptation to changing conditions; the phasing-in and phasing-out of LCRs; and, the recognition that LCRs should not be portrayed as a panacea for all challenges to the economy. Thus: