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- Horizontal Linkages (Beyond Extractives)
- Assessing the Potential to Create Increased Economic Links
Assessing the Potential to Create Increased Economic Links
At a Glance
- Policies to promote horizontal linkages should be based on an assessment of the skills and technology developed for the mining and/or oil and gas sector.
- This involves assessing the depth of backward and forward linkages; assessing nonextractive economic sectors that could benefit; and understanding which capabilities and assets could be most easily transferred to other sectors.
Case Studies
- Chile Horizontal Linkages: Using Taxation to Foster Horizontal Linkages (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development)
- South Africa Horizontal Linkages - Building Expertise by Overcoming Country-Specific Constraints (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development)
Key Resources
Topic Briefing
Policies to promote horizontal linkages need to start with an assessment of the current capabilities of extractive industries and their value chains. As Hausmann put it: “The probability that a country will develop the capability to be good at producing one good is related to its installed capability in the production of other similar, or nearby, goods for which the currently existing productive capabilities can be easily adapted.”[1]