Permanent Sovereignty over Natural Resources

Permanent sovereignty over natural resources establishes that peoples and nations have the right to control, use and dispose of their natural wealth and resources. This right must be exercised for national development and the well-being of the people, rather than solely for the benefit of outside powers or private investors.

Recognition and purpose

The principle received authoritative expression in UN General Assembly Resolution 1803 (XVII), adopted in 1962. It links control over natural resources with self-determination and the economic independence of peoples and nations.

• It concerns natural wealth and resources, including land, forests, minerals and other resources that support a country's development.
• The principle recognises the rights of peoples and nations, so governmental control is to serve public well-being rather than constitute an unrestricted entitlement of rulers.

What resource sovereignty permits

The principle supports national authority to decide how resources are explored, developed and used, and on what terms foreign participation is permitted. It provides a basis for regulating foreign investment and asserting public control over resource exploitation.

• A country may determine the conditions under which foreign capital participates in developing its natural resources.
• Nationalisation or expropriation must be based on public utility, security or the national interest; Resolution 1803 also provides for appropriate compensation in accordance with applicable national law and international law.
• Agreements freely entered into concerning foreign investment must be observed in good faith, so resource sovereignty does not simply erase international commitments.

Environmental responsibilities and limits

Resource sovereignty is not an unlimited licence to cause environmental damage. Principle 2 of the Rio Declaration recognises the sovereign right to exploit resources pursuant to national environmental and developmental policies, alongside responsibility to prevent environmental harm outside national jurisdiction.

• States must ensure that activities within their jurisdiction or control do not damage the environment of other states or areas beyond national jurisdiction.
• Article 3 of the Convention on Biological Diversity reflects this combination of sovereign resource rights and responsibility for environmental harm.
• For conservation, the principle therefore combines national decision-making over resources with international environmental responsibilities.