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Does Ownership Matter? Gary Morris Flomenhoft Master of Public P An Inquiry into the Economic Commonwealth of Mineral Resources: Does Ownership Matter? Gary Morris Flomenhoft Master of Public Policy Graduate Certificate in Ecological Economics Bachelor of Science in Mechanical Engineering 0000-0002-5162-2809 A thesis submitted for the degree of Doctor of Philosophy at The University of Queensland in 2020 Sustainable Minerals Institute Abstract The purpose of this thesis is to inquire into the nature of minerals as a common property resource, to inform the debate about the resource curse. The study considers if communal, or decentralised ownership results in better development and societal outcomes than other forms of ownership. There are four parts, including a historiography of mineral laws going back to Roman Law and up to the present day to find precedent for communal title to minerals in historical law, common law, civil law, or international customary law. The second part involved an analysis of domestic mineral laws in 199 countries to determine the ownership regime for minerals in every country. This resulted in classifying seven different categories of ownership: No minerals, President or Ruler, State or Crown, Communal (People/Common/Collective), “Customary” Landowners, Decentralized/Mixed, and Claimant/Ownerless/Landowner. This analysis found that communal ownership of minerals essentially does not exist at the national level, except in legal rhetoric. The study then focused on the impact of mineral ownership in general on the Human Development Index (HDI). The third part involved a statistical analysis to determine the impact of mineral ownership on the UN Human Development Index (HDI), a broader measure of welfare than GDP. This was conducted in two stages. In stage one, the six categories of mineral ownership were divided into two types: centralized and decentralized ownership. A simple comparison of the means determined that decentralized ownership had better outcomes as measured by the HDI without controlling for other factors. The second stage of analysis consisted of a multiple regression analysis in order to determine the effect of mineral ownership while controlling for other factors that could be identified. The fourth part of the thesis consisted of a case study of communal ownership of mineral-rich lands by the Royal Bafokeng Nation of South Africa. The benefits of mineral ownership to the Bafokeng administration was analysed. A survey was also conducted of 493 area residents to determine their level of satisfaction with services provided by funds from mineral ownership. The main finding is that communal ownership per se could not be identified as the primary beneficial factor in human development outcomes. However, the evidence is that decentralized ownership using the principle of subsidiarity did support better outcomes as measured by the HDI, and could contribute to mitigation of the resource curse. The case study also supported this finding as communal mineral ownership at the local level resulted in much better facilities, benefits, education, and health outcomes than for South Africa as a whole. Declaration by author This thesis is composed of my original work, and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis. I have clearly stated the contribution of others to my thesis as a whole, including statistical assistance, survey design, data analysis, significant technical procedures, professional editorial advice, financial support and any other original research work used or reported in my thesis. The content of my thesis is the result of work I have carried out since the commencement of my higher degree by research candidature and does not include a substantial part of work that has been submitted to qualify for the award of any other degree or diploma in any university or other tertiary institution. I have clearly stated which parts of my thesis, if any, have been submitted to qualify for another award. I acknowledge that an electronic copy of my thesis must be lodged with the University Library and, subject to the policy and procedures of The University of Queensland, the thesis be made available for research and study in accordance with the Copyright Act 1968 unless a period of embargo has been approved by the Dean of the Graduate School. I acknowledge that copyright of all material contained in my thesis resides with the copyright holder(s) of that material. Where appropriate I have obtained copyright permission from the copyright holder to reproduce material in this thesis and have sought permission from co-authors for any jointly authored works included in the thesis. Publications included in this thesis Chapter 4: Flomenhoft, G. (2018). Historical and Empirical Basis for Communal Title in Minerals at the National Level: Does Ownership Matter for Human Development? Sustainability, 10(6), 1958; https://doi.org/10.3390/su10061958 Contributor Statement of Contribution Gary Flomenhoft (Candidate) Conception and design (100%) Analysis and interpretation (100%) Drafting and production (100%) Chapter 6: Flomenhoft, G. (2019). The Role of Communal Land and Attitudes of the Bafokeng in Benefits from Mining. South African Journal of International Affairs, Johannesburg, South Africa, Volume 26, 2019; https://doi.org/10.1080/10220461.2019.1607773 Contributor Statement of Contribution Gary Flomenhoft (Candidate) Conception and design (100%) Analysis and interpretation (95%) Drafting and production (100%) Jill Harris Conception and design (0%) Analysis and interpretation (5%) Drafting and production (0%) Other manuscripts included in this thesis (submission pending) Chapter 5: Flomenhoft, G., Ahmad, S. (2020). The Case for Decentralization in National Mineral Ownership for Human Development Contributor Statement of Contribution Gary Flomenhoft (Candidate) Conception and design (100%) Analysis and interpretation (40%) Drafting and production (70%) Shabbir Ahmad (advisor) Conception and design (0%) Analysis and interpretation (60%) Drafting and production (30%) Other Publications during candidature Peer Reviewed Journal Articles Flomenhoft, G. The Triumph of Pareto, How Dominant Economics Distorts Reality and Perpetrates Hidden Values. Real-world economics review, issue no. 80, 7 April 2017. Flomenhoft, G. Escaping the Polanyi matrix: the impact of fictitious commodities: money, land, and labor on consumer welfare. Real-world economics review, issue no. 74, 30 June 2016. Flomenhoft, G. The Eco-Illogical Cycle and the Politics of Climate Change, Solutions Journal, Volume 6 | Issue 1 | Page 84-90 | January 2015 Book chapters Flomenhoft, G. Total Economic Rents of Australia as a Source for Basic Income, in Financing Basic Income, Overcoming the Cost Objection, Richard Pereira, Editor, Palgrave Macmillan, 2017 Conference Presentations Do the Bafokeng People Benefit from Platinum on their land? SMI HDR Conference, 22 November, 2018 (Best Keynote), Brisbane, Australia Extending the Alaska model to overcome the new enclosure of the commons, USBIG, 17th Annual Congress, 24-27 May, 2018, Michael DeGroote Centre for Learning and Discovery (MDCL), McMaster University, Hamilton, Ontario Economic Rent as a basis for Basic Income in Australia, USBIG, 16th Annual Congress, June 16-18, 2017, The Silberman School of Social Work at Hunter College, NYC Economic Rent as a basis for Basic Income in Australia, Universal Basic Income in the Asia Pacific Conference, 18 March, 2017, National Chengchi University, Taipei, Taiwan Reclaiming the Commonwealth, Living Economies Expo, Lyttleton, New Zealand, 2 April, 2017. Contributions by others to the thesis Advisors Saleem Ali and Kathryn Sturman provided overall supervision and guidance, reviewing, editing, guidance on research methods, conceptual framework, etc. Kathryn Sturman suggested the fieldwork location, and Saleem Ali provided contacts with gatekeepers that made it possible. Kathryn provided extensive editing and writing assistance. Shabbir Ahmad provided extensive assistance with statistical analysis in chapter 5: The Case for Decentralisation in National Mineral Ownership. This included both the statistical analysis itself and the explanation. The remainder of the paper was mine alone. Jill Harris reviewed and edited the explanation of the statistical analysis in chapter 6: The Role of Communal Land and Attitudes of the Bafokeng in Beneficiation from Mining. The statistical analysis and entirety of the research and writing was done by me alone. Statement of parts of the thesis submitted to qualify for the award of another degree “No works submitted towards another degree have been included in this thesis”. Research Involving Human or Animal Subjects Ethical review for the Royal Bafokeng Nation Case Study was conducted by the UQ Behavioural & Social Sciences Ethical Review Committee (BSSERC), and approval was granted on 16 January, 2018 with ethics approval number 17-002. Approval letter is in Appendix. Acknowledgements The PhD process has been a mainly solitary academic endeavour for me. Without the support of my colleagues and advisors, I would not have been able to complete it. I am especially grateful to my primary advisor, Dr. Saleem Ali, for supporting my admission to UQ and scholarship, as well as moral support. I highly appreciate the assistance of advisor Dr. Kathryn Sturman who suggested the case study location, and Saleem who facilitated
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