Incentivising Local Economic Development in the Extractive Industries Sector through Transaction Chain Analysis

Briefing papers
January 2007
Michael Warner

Transaction Chain Analysis is the investigation, vertically down the chain of obligations and incentives, which links together trade rules, national and local economic policy, investment agreements, joint venture agreements, and international and local procurement contracts. The proposition is that surgical interventions in this chain in relation to policy reform, competitive bidding (including pre-qualification thresholds, tender procedures, post award discussions) and contracts terms, can provide incentives that broaden and enhance local content in ways that both align with local economic development policy, and encourage competitive differentiation by operators and contractors.

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