This article examines the nature and significance of the power imbalance between developing countries and transnational corporations (TNCs) in the natural resource sector. It situates this power imbalance within the context of global economic realities, including the high profitability of extractive TNCs; rampant poverty in developing countries; dependence of many developing countries on the extractive sector for economic sustenance; and lack of regulatory expertise on the part of developing countries.
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