Kraal, Diane --- "Risks and fiscal concerns in the extraction of natural resources: a study of transnational corporations in Papua New Guinea" [2017] ELECD 258; in de Jonge, Alice; Tomasic, Roman (eds), "Research Handbook on Transnational Corporations" (Edward Elgar Publishing, 2017) 363

Book Title: Research Handbook on Transnational Corporations

Editor(s): de Jonge, Alice; Tomasic, Roman

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783476909

Section: Chapter 13

Section Title: Risks and fiscal concerns in the extraction of natural resources: a study of transnational corporations in Papua New Guinea

Author(s): Kraal, Diane

Number of pages: 26

Abstract/Description:

Transnational corporations (TNCs) dominate the extraction activities of high-value mineral resources in Papua New Guinea (PNG). The discussion covers how PNG’s scarcity of technical expertise and capital has affected its negotiating leverage with extractive industry TNCs. These TNCs have generally been in stronger positions when negotiating the fiscal terms of their operations with the PNG government. This chapter investigates the risks and the fiscal challenges for TNCs operating in the natural resource sector in the host country of PNG. It examines the importance of fiscal negotiations for formal agreements between a host country, which is endowed with natural resources, and extractive TNCs. The chapter contextualizes the extraction activities and taxation of a developing country, and the impact of institutions, including agencies such as the International Monetary Fund and other global financial bodies on host country policies.