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SPECPOL - World Model United Nations

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to address how the united <strong>Nations</strong> might encourage<br />

nations to follow this protocol, or discourage them<br />

from not respecting these rights.<br />

Proposed Solutions<br />

It is useful to look at past solutions proposed and<br />

utilized by other countries in order to help create a<br />

successful and lasting solution to the mining problem<br />

today. Nationalization, or the assumption of control<br />

by the government, is one potential solution used<br />

in China and Venezuela, and is being discussed as a<br />

proposed solution elsewhere, such as South Africa<br />

and Bolivia. In countries where all or part of the mining<br />

industry is nationalized, governmental oversight<br />

is undoubtedly easier. For instance, with respect<br />

to China’s coal mining, the government owns the<br />

Shenhua Group, the largest coal producer in the world.<br />

the state manages the mines, the transportation of<br />

the coal, and its use. The government operates this<br />

company much like any other, using it to seek further<br />

investment in mining opportunities abroad, which<br />

sometimes attracts the scrutiny of other nations,<br />

who are wary of letting another government directly<br />

invest in developing their natural resources.<br />

There are benefits and setbacks to this solution.<br />

With a nationalized industry, the state can easily<br />

regulate the use and development of the mining<br />

industry within its borders, ensuring that the needs<br />

of the state come first. Venezuela has stated that it<br />

decided to nationalize its gold industry to prevent<br />

smuggling and cut down on environmental damage,<br />

a direct result of enhanced government scrutiny.<br />

However, there are drawbacks to nationalization that<br />

may make it a less attractive option, particularly for<br />

smaller nations. First, in order to nationalize a given<br />

section of the mining industry, it is necessary to have<br />

the infrastructure and capital to properly manage it.<br />

For countries such as China, this is feasible, but for<br />

others such as Mongolia, this would be a very difficult<br />

task. The necessary roads, equipment, and personnel<br />

must be present in order to efficiently and profitably<br />

run the mining sector, a difficult reality to ensure.<br />

Increasing government regulation of the mining<br />

industry will inevitably decrease foreign investment,<br />

and the government must be able to run the mines,<br />

so as to guarantee that this does not have a lasting<br />

negative effect on the economy.<br />

Conversely, it is useful to look at the implications<br />

of a system with little to no governmental oversight<br />

or control. The Democratic Republic of the Congo is<br />

one of the most resource-rich nations on the planet,<br />

yet it suffers from civil wars and violence that many<br />

believe is perpetuated by the illegal mineral trade,<br />

which takes revenue away from the government. 123<br />

The country has an enormous private mining sector,<br />

with over 25 companies actively mining in 2011.<br />

Though the Congolese government does control<br />

a mining company known as Gécamines and owns<br />

several copper, cobalt, and zinc mines, production<br />

has been limited, and in recent years the company has<br />

undergone privatization of several of its operations<br />

through Chinese and Canadian investment. 124<br />

It is hard to differentiate the effects on the<br />

industry caused by lax governmental oversight from<br />

the issues surrounding the violence and instability<br />

in the region. yet it is important to note that the<br />

DRC has experienced a sharp negative decline in<br />

environmental quality, especially around mining<br />

sites located near national parks. Without effective<br />

regulation of transactions, there are concerns and<br />

allegations that the sale of coltan has been used to<br />

fund the civil war that has claimed thousands of lives<br />

in the country. 125 Violations of labor rights are very<br />

common, owing to the inability of the government<br />

to control mining operations within its borders. Thus,<br />

there are problems inherent in a lax system that gives<br />

almost complete control to the foreign investors as<br />

well.<br />

Any future solution to the problem of balancing<br />

39<br />

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