THE ERA OF OLD INTERNATIONAL ECONOMIC Sample Clauses

THE ERA OF OLD INTERNATIONAL ECONOMIC. ORDER The uneven occurrences and endowments of mineral resources in the world had and still does stimulate intense competition among nation states to obtain access to these resources, because of their centrality to the survival and development of the world economy.39 The fact that a majority of these minerals are located in developing countries has produced immense opportunities for the states and people who own them and the quest for their exploitation by developed countries that need them most40. This is an era usually referred to as the Old International Economic Order. During the colonial period, the point of entry into mining was for TNCs and MNCs to obtain propriety rights over mineral occurrences through the instrumentality of concession agreements. The TNCs and MNCs in turn made equity investments in the host country to exploit the minerals found therein. These concession agreements, as can be seen in chapter three herein, had the unique feature of completely excluding the participation of the host country in the exploration, exploitation and marketing of the minerals. The era of the Old International Economic Order existed and had been operated to the detriment of the host countries/developing countries in various ways: a) These mining concessions completely excluded the participation of the host nation as the TNCs and MNCs assumed total control of the exploitation and marketing of the minerals and the host nation or its people had no say as to what purpose the proceeds were applied. b) The coverage of these mining concessions was usually for vast pieces of land granted to the TNCs and MNCs. The limitless scope of coverage made the beneficiaries complete owners of the land and its resources. The Concession Agreement between Liberia and Gewerkshagt Company tagged "Liberia Gewerkshagt Exploitation Agreement of 1958 is a good example41. The operative clause reads thus: