Paper short abstract:

This paper develops an analytical framework for how to analyse the implementation of large-scale investments into natural resources, focusing on the triangular relations between investors; local populations; and ruling elites.

Paper long abstract:

Large-scale investments in natural resources (extractives as well as agriculture) can help transforming African economies by accelerating economic growth, creating jobs and strengthening links between local economies and the global economy more broadly. However, they often end up violating rights. This, in turn, may lead to social protests and political instability. This paper develops an analytical framework for how to analyse the implementation of large-scale investments into natural resources. It focuses on the triangular relations between investors; local populations; and ruling elites. The framework points to the outcomes of these triangular relationships as 'reciprocal exchange deals' between investors and local populations, 'compatible interests' between ruling elites and investors, and 'productive social relations' between local populations and ruling elites. We show that in order to understand why some investments are more successfully implemented than others, it is necessary to grasp the politics behind an investment. The paper furthermore explores the conditions under which investments can be implemented without violating the rights of local populations. The paper is based on a review of relevant literatures and is linked to ongoing empirical studies of large-scale natural resource investment cases in Mozambique, Tanzania and Uganda related to gas/oil, mining and agriculture.