Essays on Comparison of Mining Policies in Canada and Australia Case Study

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The paper 'Comparison of Mining Policies in Canada and Australia " is a good example of a business case study.   Earth-based resources can be a blessing if well handled or a curse if not well handled as the case of Nigeria and Congo (Noruwa & Christopher, 2012, p. 16; Prosansky, 2007, p. 237). This then calls for proper formulation of the well-guided policy so as to direct the sector. However, in a general overview, the mining industry is an important sector in any country’ s economy. This is based on the fact that it employs people, contributes to national coffers in terms of taxes, has forward and backward linkages with other sectors and thus a ripple effect that leads to economic growth and it acts as foreign exchange earner as result of the export-related process making a country improve its balance of trade (Wright & Czelusta, 2003, p. 4).

This means a mining policy of a country should be able to protect the sector, encourage efficiency and protect the public interest (Weber-Fahr et al. , 2001). Mining is key in Australia whereby it contributed 8.4% to GDP in 2009/10 and 9.4 % in immediate previous years (Australian Bureau of Statistics, 2012).

The aim of this paper is to examine how the government develops industry policy in the mining sector by comparing between Australia and Canada. Further, the paper will show which country among the two has powerful interest groups in the mining industry. Mining Policies Policies are important documents of aligning a specific sector with the legal, social and economic goals of a country. Policies are critical in informing a sector on how it should be driven and the legislations to be formulated forthwith (Office of the Auditor General, 2003, p. 2).

The underlying argument is that policies shape a sector by creating an enabling environment towards a certain direction or it creates impediments and inhibitors that deter certain actions through normative and substantive statements (Mayer, 2009, p. 373 & 374). In the above breadth, the signal arising is that the formulation process of a policy is integral and requires wide consultation so that an informed document is presented to guide a certain sector of the economy. In the policy formulation process, there are different quarters with different interest.

This means lobbying is the order of the day depending on their interest. However, it is the onus of the government through its relevant ministries and departments to ensure production of policy statements that will stand the test of time as aligned to the overall aspirations of that country and best practices globally (Weller, Morris & Simpson, 2001, p. 46). This can be said of mining industries in Australia and Canada. Comparison of Policy-Making Process in Canada and Australia Policymaking process in Canada is mainly driven by the prime minister, the cabinet and the Privy Council office.

This is tied to the confidence they enjoy in the parliament. In addition to the cabinet, the other important organ is the cabinet secretaries. In Canada, it is the policies that inform the priorities to be undertaken by the government during their tenure. To strengthen the process, in 1996 policy research initiative was approved so as to reinforce the government’ s capacity in identifying, understanding and addressing medium and long- term cross-cutting policy issues (Treasury Board of Canada Secretariat, 2006).

The mining sector employs approximately 340, 000 Canadians and creates an economic foundation for 150 communities. Based on this realisation the government reformulated the 1987 mineral and metal policy in 1994 (Natural Resources Canada, 2011).

References

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Australian Bureau of Statistics (2012). Mining Industry Economic Contribution. Retrieved on 23 September, 2012 from: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1301.0~2012~Main%2 0Features~Mining%20Industry~150.

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Noruwa, I. A & Christopher, O. C. (2012). Derugulation and Privatisation of the Upstream and Downstream Oil and Gas Industry in Nigeria: Curse or Blessing. International Journal of Business Administration Vol. 3, No. 1, pp. 16-20.

Office of the Auditor General, Manitoba (2003). A Guide to Policy Development. Retrieved on 23 September, 2012 from: http://www.oag.mb.ca/wp- content/uploads/2011/06/PolicyDevelopmentGuide.pdf.

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Weber-Fahr, M., Strongman, J., Kunanayagam, R., McMahon, G. & Sheldon, C. (2001). Mining and Poverty Reduction. Retrieved on 23 September, 2012 from: http://www.intussen.info/OldSite/Documenten/Noord/Internationaal/WB/PRSP%20Sourc ebook/20%20Mining%20and%20poverty%20reduction.pdf.

Weller, P., Morris, M. R. & Simpson, D. (2010). Understanding the Formulation and Development of Government Policy in the Context of FOI. Retrieved on 23 September, 2012 from: http://www.ico.gov.uk/upload/documents/library/freedom_of_information/research_and_ reports/ucl_report_government_policy_in_the_context_of_foi.pdf.

Wright, G. & Czelusta, J. (2003). Mineral Resources and Economic Development. A Paper Prepared for the Conference on Sector Reform in Latin America, Stanford Centre for International Development. Retrieved on 23 September, 2012 from: http://www- siepr.stanford.edu/workp/swp04004.pdf.

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