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- W2468049506 abstract "Economic growth depends on the availability of natural resources, the accumulation of physical and human capital, efficiency in resource allocation, and the acquisition and application of modern technology. A crucial question then is how the institutional and policy environment should be organised to facilitate the accumulation of production factors and their efficient allocation, as well as the introduction of enhanced technologies. In this paper we will discuss this issue for the case of a natural resource abundant economy, where the economic structure and the implied incentives create special problems. We will in particular look at the character and role of institutions and interest groups that emerge in such a setting. One would presume that countries with an abundance of natural resources would stand a better chance of developing than resource-poor countries. However, recent experiences in less developed countries paradoxically show the reverse. Sachs and Warner (1995) show that countries with a high share of natural resources in their exports in 1971 grew slower than the average between 1971 and 1989. Likewise, Auty (1998) shows that between 1960 and 1990, resource-deficient developing countries grew two to three times faster than resource-rich ones. Development was particularly bad in small countries that based their development on hard minerals (such as copper). This group actually saw per capita incomes decline by 0.2% per year. The poor results remain even if one controls for trends in commodity prices. Why do we get these results?" @default.
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- W2468049506 date "2001-01-01" @default.
- W2468049506 modified "2023-09-27" @default.
- W2468049506 title "Policy-Making in Resource-Rich Countries Lessons from Zambia" @default.
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