More on Property Rights Insecurity and Short-Termism
AP has an interesting article that complements my earlier analysis:
A debilitating dispute at Anglo-Russian joint venture TNK-BP, in large part resolved, has also stoked concerns. The company reassigned 148 technical specialists from the country earlier this year amid visa difficulties and litigation.
In July, chief operating officer Tim Summers said the Russian shareholders’ desire to cut capital expenditure by $900 million in 2008 could wipe up to 1 million tons to 5 million tons from the company’s output over the next 12 months.
Further evidence that the Russian partners in BP-TNK are highly desirous of getting cash out now.
The article also points out that the nearly confiscatory tax regime also depresses the incentive to invest.
