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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Namibian-De Beers, State-Firm Relations: Cooperation and Conflict
Authors:Kempton, Daniel R.ISNI
Du Preez, Roni L.ISNI
Year:1997
Periodical:Journal of Southern African Studies
Volume:23
Issue:4
Pages:585-613
Language:English
Geographic term:Namibia
Subjects:mining policy
diamond mining
mining companies
External link:https://www.jstor.org/stable/2637428
Abstract:This article argues that State-firm relations are an increasingly important fact of international relations. Using a version of the obsolescing bargain model, it examines he relations between Namibia and the South African diamond mining company De Beers, particularly the bargaining that has occurred since Namibian independence in 1990. The authors conclude that Namibian independence altered both the bargaining power and interests of the two sides. Independence gave Namibia the ability to create more effective legislation and economic structures to limit and guide its domestic diamond industry. At the same time changes in the international diamond world, particularly the growing challenge from Russia, weakened De Beers' bargaining power and increased its need to solidify its African base. Once SWAPO became the government, its interests also changed. Before independence SWAPO viewed the mining of its diamonds as an unmitigated form of exploitation by De Beers. After independence it needed De Beers' technology, investments and access to international markets to provide the State with export revenues and its people with salaries. The changes in bargaining power and interests have brought about numerous changes in Namibian-De Beers relations. While the 1994 Namibian-De Beers agreement provided the most visible evidence of this change, the terms of the relationship have continued to evolve. Notes, ref., sum.
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