Mixture of private and state-owned firms (TNCs)

• explain 1

  • Extractive industries are mainly run by large private companies. Among the world’s top 50 companies, 9 are in oil or mining 
  • Eg. Saudi Aramco ranked 1st for oil companies and Vale (Brazil) ranked 1st in 2007 for metal mining companies 
  • Governments often play a big role in these industries because they need a lot of infrastructure and logistical support. Governments can operate as a regulator (of safety from environmental issues, for example) as well as an operator 
• explain 2

  • At the start, countries often rely on outside investment to develop their resource industries. Big companies from other countries invest to control the minerals they need for big industries. 
  • But in the 1960s, things changed. Many countries that used to be colonies gained independence and took control of their resources, reducing the role of foreign companies