It is widely believed that natural mineral resources are desirable. However there is growing evidence that this may not always be the case. Indeed, it seems that natural assets can distort the economy to such a degree that the benefit actually becomes a curse. In Sustaining Development in Mineral Economies, Richard Auty highlights these drawbacks and the devastating effect they can have on developing economies. With reference to six ore-exporters (viz. Peru, Bolivia, Chile, Jamaica, Zambia and Papua New Guinea) he outlines how things can go badly wrong. He particularly stresses the need to avoid `Dutch Disease' whereby competitiveness is drained out of the agriculture and manufacturing sectors so that in the long term growth falters.
This highlights the drawbacks of possessing natural mineral resources. These can quickly become a curse on the ore-exporting economies of developing countries leading to drainage of resources and the faltering of long term growth
Since the 1960s the per capita incomes of the resource-poor countries have grown significantly faster than those of the resource-abundant countries. In fact, in recent years economic growth has been inversely proportional to the share of natural resource rents in GDP, so that the small mineral-driven economies have performed least well and the oil-driven economies worst of all. Yet the mineral-driven resource-rich economies have high growth potential because the mineral exportsboost their capacity to invest and to import."Resource Abundance and Economic Development" explains the disappointing performance of resource-abundant countries by extending the growth accounting framework to include natural and social capital. The resulting synthesis identifies two contrasting development trajectories: the competitive industrialization of the resource-poor countries and the staple trap of many resource-abundant countries. The resource-poor countries are less prone to policy failure than the resource-abundant countriesbecause social pressures force the political state to align its interests with the majority poor and follow relatively prudent policies. Resource-abundant countries are more likely to engender political states in which vested interests vie to capture resource surpluses (rents) at the expense of policycoherence. A longer dependence on primary product exports also delays industrialization, heightens income inequality, and retards skill accumulation. Fears of 'Dutch disease' encourage efforts to force industrialization through trade policy to protect infant industry. The resulting slow-maturing manufacturing sector demands transfers from the primary sector that outstrip the natural resource rents and sap the competitiveness of the economy.The chapters in this collection draw upon historical analysis and models to show that a growth collapse is not the inevitable outcome of resource abundance and that policy counts. Malaysia, a rare example of successful resource-abundant development, is contrasted with Ghana, Bolivia, Saudi Arabia, Mexico, and Argentina, which all experienced a growth collapse. The book also explores policies for reviving collapsed economies with reference to Costa Rica, South Africa, Russia and Central Asia. Itdemonstrates the importance of initial conditions to successful economic reform.
Mining is a transformative activity which has numerous economic, social and environmental impacts. These impacts can be both positive and adverse, enhancing as well as disrupting economies, ecosystems and communities. The extractive industries have been criticised heavily for their adverse impacts and involvement in significant social and environmental scandals. More recently, these industries have sought to respond to negative perceptions and have embraced the core principles of sustainability. This sector could be regarded as a leader in sustainability initiatives, evident from the various developments and frameworks in mining and sustainability that have emerged over time. This book reviews current topical issues in mining and sustainable development. It addresses the changing role of minerals in society, the social acceptance of mining, due diligence in the mining industry, critical and contemporary debates such as mining and indigenous peoples and transit worker accommodation, corporate sustainability matters such as sustainability reporting and taxation, and sustainability solutions through an emphasis on renewable energy and shared-used infrastructure. Written by experts from Australia, Europe and North America, but including examples from both developed and developing countries, the chapters provide a contemporary understanding of sustainability opportunities and challenges in the mining industry. The book will be of interest to practitioners, government and civil society as well as scholars and students with interests in mining and sustainable development.
Sustainable practices within the mining and energy sectors are assuming greater significance due to uncertainty and change within the global economy and safety, security, and health concerns. This book examines sustainability issues facing the mining and energy sectors by addressing six major themes: Mining and Mineral Processing; Metallurgy and Recycling; Environment; Energy; Socioeconomic and Regulatory; and Sustainable Materials and Fleets. Emphasizing an integrated transdisciplinary approach, it deliberates on optimizing mining productivity and energy efficiency and discusses integrated waste management practices. It discusses risk management, cost cutting, and integration of sustainable practices for long-term business value. It gives a comprehensive outlook for sustainable mineral futures from academic and industry perspectives covering mine to mill optimization, waste, risk and water management, improved efficiencies in mining tools and equipment, and performance indicators for sustainable developments. It covers how innovation and research underpin management of natural resources including sustainable carbon management. •Focuses on mining and mineral processing, metallurgy and recycling, the environment, energy, socioeconomic and regulatory issues, and sustainable materials and fleets. •Describes metallurgy and recycling and uses economic, environmental and social parameter analyses to identify areas for improvement in iron, steel, aluminium, lead, zinc, copper, and gold production. •Discusses current research on mining, performance indicators for sustainable development, sustainability in mining equipment, risk and safety management, and renewable energy resources •Covers alternative and conventional energy sources for the mineral sector as well water treatment and remediation and energy sustainability in mining. •Provides an overview of sustainable carbon management. •Offers an interdisciplinary approach with international focus.
This is the first book of peer-reviewed, edited papers that examines the minerals industry in relation to sustainable development. The book takes a proactive, positivist, and solution-oriented approach, while not shying away from the fundamental problems.
This book examines the paradox that resource-rich countries often struggle to manage their resources in a way that will help their economies thrive. It looks at how a country's political regime and quality of governance can determine the degree to which it benefits - or suffers - from having natural resources, shifting away from the traditional focus on economic growth data to study the complex implications of these resources for human well-being and sustainable development. To this end, Acar examines a panel of countries in terms of the effects of their natural resources on human development and genuine saving, which is a sustainability indicator that takes into account the welfare of future generations by incorporating the changes in different kinds of capital. Acar finds that the exportation of agricultural raw materials is associated with significant deterioration in human development, while extractive resource exports, such as energy and minerals, have negative implications for genuine savings. Next, the book compares the development path of Norway before and after discovering oil, contrasting it with Sweden's development. The two countries, which followed almost identical paths until the 1970s, diverged significantly in terms of per capita income after Norway found oil.
An examination of the factors that influence economic growth and sustainable development in countries with a significant natural resource sector. It looks at how to make the primary sector sufficiently productive to provide for investment in both itself and other sectors of the economy.
