The uniqueness of uranium: The Problematics of Statecraft in Niger

Abstract

How does the nature of uranium affect the ability of developing states to leverage it for the purposes of economic development? Two potential explanations for Niger’s inability to gain from its uranium deposits—first, the resource curse, and second, Niger’s asymmetric bargaining power with Areva—have dominated conventional wisdom. However, we contend that these explanations are incomplete because of the difficulties specific to uranium as a commodity. Instead, we highlight five principal challenges—strict international regulations, non-transparent uranium pricing markets, limited supply and demand, constrained global supply chains, and the lack of domestic usage—to explore why uranium per se, above and beyond the resource curse and asymmetric bargaining, presents unique challenges for developing countries to leverage for economic development. To show this phenomenon, we draw on our 2016 fieldwork interviewing members of the Nigerien government and those in the Nigerien uranium sector to demonstrate the challenges of translating its vast uranium deposits into sustained economic growth.