Economic nationalism?

Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania

Thabit Jacob, Padil Salimo, Rasmus Hundsbæk Pedersen, Lars Buur, José Macuane

Research output: Contribution to conferenceConference abstract for conferenceResearch

Abstract

Recent gas finds in Mozambique and Tanzania and the subsequent state-centric model of domestic gas utilization have created opportunities for new sources of revenue and power generation, as well as reigniting the debate on economic nationalism. Although both countries have recently adopted reforms by separating the commercial and regulatory functions in the gas sector and share the state-centric approach to natural gas production, economic nationalism in the gas sector is driven by different circumstances in the two countries. The big questions are how domestic gas utilization differs in Mozambique and Tanzania, and what this says about economic nationalism. To highlight the differences in economic nationalism in the two countries, we contrast how the political elites in Mozambique and Tanzania exploit natural gas to create new spaces for capturing rents and generating power. In Mozambique, the gas that is retained for the domestic market rather than being exported has emerged as a key feature of new gas deals. We argue that in Mozambique the recently adopted regulatory frameworks have enabled the ruling elites to create new spaces for capturing rents and thus ensuring regime survival. In Tanzania, conversely, a combination of economic nationalism and previous bad experiences with independent power producers in the gas sector seems to have enabled the government to adopt a more active state-led approach towards domestic gas, with a focus on power production in order to boost energy security.
Original languageEnglish
Publication date10 Sep 2019
Publication statusPublished - 10 Sep 2019
EventFrom Politics to Power? Rethinking the Politics of Development ESID Conference: The Politics of Governing Natural Resources I - Manchester University, Renold hall, Manchester, United Kingdom
Duration: 9 Sep 201911 Sep 2019
http://www.effective-states.org/conference-2019/

Conference

ConferenceFrom Politics to Power? Rethinking the Politics of Development ESID Conference
LocationManchester University, Renold hall
CountryUnited Kingdom
CityManchester
Period09/09/201911/09/2019
Internet address

Keywords

  • Economic nationalism
  • Tanzania
  • Mozambique
  • Gas

Cite this

Jacob, T., Salimo, P., Pedersen, R. H., Buur, L., & Macuane, J. (2019). Economic nationalism? Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania . Abstract from From Politics to Power? Rethinking the Politics of Development ESID Conference, Manchester, United Kingdom.
Jacob, Thabit ; Salimo, Padil ; Pedersen, Rasmus Hundsbæk ; Buur, Lars ; Macuane, José. / Economic nationalism? Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania . Abstract from From Politics to Power? Rethinking the Politics of Development ESID Conference, Manchester, United Kingdom.
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abstract = "Recent gas finds in Mozambique and Tanzania and the subsequent state-centric model of domestic gas utilization have created opportunities for new sources of revenue and power generation, as well as reigniting the debate on economic nationalism. Although both countries have recently adopted reforms by separating the commercial and regulatory functions in the gas sector and share the state-centric approach to natural gas production, economic nationalism in the gas sector is driven by different circumstances in the two countries. The big questions are how domestic gas utilization differs in Mozambique and Tanzania, and what this says about economic nationalism. To highlight the differences in economic nationalism in the two countries, we contrast how the political elites in Mozambique and Tanzania exploit natural gas to create new spaces for capturing rents and generating power. In Mozambique, the gas that is retained for the domestic market rather than being exported has emerged as a key feature of new gas deals. We argue that in Mozambique the recently adopted regulatory frameworks have enabled the ruling elites to create new spaces for capturing rents and thus ensuring regime survival. In Tanzania, conversely, a combination of economic nationalism and previous bad experiences with independent power producers in the gas sector seems to have enabled the government to adopt a more active state-led approach towards domestic gas, with a focus on power production in order to boost energy security.",
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Jacob, T, Salimo, P, Pedersen, RH, Buur, L & Macuane, J 2019, 'Economic nationalism? Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania ' From Politics to Power? Rethinking the Politics of Development ESID Conference, Manchester, United Kingdom, 09/09/2019 - 11/09/2019, .

Economic nationalism? Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania . / Jacob, Thabit; Salimo, Padil; Pedersen, Rasmus Hundsbæk; Buur, Lars; Macuane, José.

2019. Abstract from From Politics to Power? Rethinking the Politics of Development ESID Conference, Manchester, United Kingdom.

Research output: Contribution to conferenceConference abstract for conferenceResearch

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Jacob T, Salimo P, Pedersen RH, Buur L, Macuane J. Economic nationalism? Domestic gas, rent capture and power generation: a comparative analysis of Mozambique and Tanzania . 2019. Abstract from From Politics to Power? Rethinking the Politics of Development ESID Conference, Manchester, United Kingdom.