Table Of ContentThe series Studies in the Political Economy of Public Policy presents cutting edge, innova-
tive research on the origins and impacts of public policy. Going beyond mainstream
public policy debates, the series encourages heterodox and heterogeneous studies of
sites of contestation, conflict, and cooperation that explore policy processes and their
consequences at the local, national, regional, or global levels. Fundamentally plural-
ist in nature, the series is designed to provide high quality original research of both a
theoretical and empirical nature that supports a global network of scholars exploring
the implications of policy on society.
The series is supported by a diverse international advisory board drawn from Asia,
Europe, Australia, and North America, and welcomes manuscript submissions from
scholars in both the global South and North that pioneer new understandings of
public policy.
Series editors
Toby Carroll, Department of Asian and International Studies,
City University of Hong Kong
Darryl Jarvis, Department of Asian and Policy Studies,
Hong Kong Institute of Education
Paul Cammack, Department of Asian and International Studies,
City University of Hong Kong
M. Ramesh, Lee Kuan Yew School of Public Policy, National University of Singapore
International Advisory Board
Michael Howlett, Simon Fraser University, Canada
John Hobson, University of Sheffield, UK
Stuart Shields, University of Manchester, UK
Lee Jones, Queen Mary, University of London, UK
Kanishka Jayasuriya, University of Adelaide, Australia
Shaun Breslin, University of Warwick, UK
Kevin Hewison, Murdoch University, Australia
Richard Stubbs, McMaster University, Canada
Dick Bryan, University of Sydney, Australia
Kun-chin Lin, University of Cambridge, UK
Apiwat Ratanawaraha, Chulalongkorn University, Thailand
Wil Hout, Institute of Social Studies, Erasmus University, The Netherlands
Penny Griffin, University of New South Wales, Australia
Philippe Zittoun, Science Po, Grenoble, France
Heng Yee Kuang, National University of Singapore
Heloise Weber, University of Queensland, Australia
Max Lane, Victoria University, Australia
Titles include:
Toby Carroll and Darryl S.L. Jarvis (editors)
THE POLITICS OF MARKETISING ASIA
Pascale Hatcher
REGIMES OF RISK
The World Bank and the Transformation of Mining in Asia
Daniel Novotny and Clara Portela (editors)
EU-ASEAN RELATIONS IN THE 21st CENTURY
Towards a Stronger Partnership
Philippe Zittoun
POLICY AS POLITICS
Discursive Transformations and Public Policymaking
Studies in the Political Economy of Public Policy
Series Standing Order ISBN 978–1–137–00149–8 hardback
ISBN 978–1–137–00150–4 paperback
You can receive future titles in this series as they are published by placing a standing
order. Please contact your bookseller or, in case of difficulty, write to us at the address
below with your name and address, the title of the series and the ISBN quoted above.
Customer Services Department, Macmillan Distribution Ltd, Houndmills,
Basingstoke, Hampshire RG21 6XS, England
Regimes of Risk
The World Bank and the Transformation
of Mining in Asia
Pascale Hatcher
Associate Professor, Ritsumeikan University, Japan
© Pascale Hatcher 2014
Softcover reprint of the hardcover 1st edition 2014 978-1-137-03131-0
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The author has asserted her right to be identified as the author of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2014 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-44081-8 ISBN 978-1-137-03132-7 (eBook)
DOI 10.1057/9781137031327
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
Typeset by MPS Limited, Chennai, India.
To Damien
This page intentionally left blank
Contents
List of Figures, Tables, Maps, and Boxes ix
Acknowledgements xi
List of Acronyms and Abbreviations xii
Introduction 1
Framework and thesis 3
Case studies 6
The chapters 9
1 Into the Deep: The World Bank Group, Mining Regimes,
and Theoretical Insights 12
Towards the last frontier: mining, risk investments,
and the World Bank Group 13
Rolling with the punches: the WBG and the promotion
of mining from a historical perspective 20
The social- developmental model: a critical p olitical- economy
perspective 28
Rethinking the state 30
Rethinking the political fabric of society 33
Conclusion 36
2 The Open Pit: S ocio- Environmental Safeguards, Multilateral
Meddling, and Mining Regimes in the Philippines 37
Introduction 37
The Philippines’ mining regime and multilateral norms 40
Pressures from above: the Philippines and the mining ‘crisis’ 41
Towards a new mining regime: neoliberal incentives and
socio- environmental safeguards 45
The early days: implementation of the Mining Act and its
legal challenges 48
The Filipino state at work: conflicting interests and
strategic choices 54
A strategic absence 55
The social- development model and the management
of local demands 61
Human rights, politics, and insurgency 69
Conclusion 74
vii
viii Contents
3 Mining, Multilateral Safeguards, and Political
Representation in Laos 76
Introduction 76
The promises of a sector: the expansion of mining in Laos 77
The World Bank and the promotion of large- scale mining in Laos 81
By the book: community development and environmental
protection in Laos 86
The World Bank, the SDM, and one-party rule 88
Heads in the sand: the technocratic management
of socio- environmental risks 93
Both pedals at the same time 97
Conclusion 100
4 Green Mining in the Gobi? Multilateral Norms and
the Making of Mongolia’s Mining Regime 101
Introduction 101
All the desert’s riches: the making of Mongolia’s
mining regimes 102
Multilateral norms and Mongolia’s evolving mining regimes 104
Much ado about nothing: the populist scare 106
Setting the tone: Oyu Tolgoi’s Investment Agreement 109
A mirage in the desert: economic and socio- environmental promises 115
Poverty, economic growth, and local development 115
Human rights concerns 117
Socio-e nvironmental concerns 118
Conclusion 123
5 Fighting Back: Resource Nationalism and the Reclaiming
of Political Spaces 125
Introduction 125
The nationalist faux pas 126
Expanding political spaces 129
The Philippines: Noynoy’s Executive Order No. 79 129
Crunch time in Mongolia: the rise of resource nationalism 133
The WBG and politics: a c ross- country analysis 138
Conclusion 143
Conclusion 144
Notes 148
References 163
Index 184
List of Figures, Tables, Maps, and
Boxes
Figures
1.1 The World Bank Group 14
1.2 WBG extractive industry financing (F Y 2001– 2 012) 14
2.1 Total exports of minerals and mineral products (in US$ million) 44
2.2 Chronology of events: legal challenges to the Mining Act 50
2.3 Timeline: selected m ining- related socio- environmental incidents
( 2011– 2013) 57
4.1 Coal production 103
4.2 Copper production (Cu content) 104
4.3 Oyu Tolgoi ownership 110
5.1 Gold, silver, and copper prices ( 1992– 2012) 127
Tables
I.1 Material assessment of Laos, Mongolia, and the Philippines 8
1.1 IFC mining activities 15
2.1 Statement of bank loan and IDA credits – sectoral adjustment
loan, s tructural adjustment loan, and programme loans
in the 1980s 42
2.2 Existing FTAAs (as of 31 January 2013) 46
2.3 Active IFC extractive i ndustry- related projects 53
2.4 Employment in mining and quarrying (1 999– 2011) 68
2.5 Gross production value in mining (2 000– 2011) 68
3.1 Mining exploration projects by investor country of origin 83
3.2 Mining projects by investor country of origin 83
4.1 World Bank Group extractive i ndustry- related projects in
Mongolia (over US$1 million) 105
5.1 Philippine exploration permits, permits, agreements, and
contracts ( 2001–2 012) 131
ix
