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Asian-driven resource booms in Africa: Rethinking the impacts on development

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Author Info

  • Breisinger, Clemens
  • Thurlow, James

Abstract

"Today's resource boom in Africa, driven by Asian economic growth, offers new opportunities for resource-rich African countries. Contrary to the experience of previous booms, however, most mining profits now accrue to foreign companies, leaving little room for governments to use revenues for pro-poor investments or to mitigate adverse distributional impacts. Taking Zambia as a case study, this paper shows that despite privatization, Dutch disease remains a valid concern and may hamper economic diversification, worsen income distribution, and undermine poverty reduction strategies. Mining royalties must, therefore, be increased and used to finance growth-inducing investments that encourage pro-poor economic diversification, else many African countries will remain caught in a resource trap." from Author's Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 747.

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Date of creation: 2008
Date of revision:
Handle: RePEc:fpr:ifprid:747

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Related research

Keywords: Dutch disease; Resource booms; Privatization; Income distribution;

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Cited by:
  1. Thurlow, James & Zhu, Tingju & Diao, Xinshen, 2009. "The impact of climate variability and change on economic growth and poverty in Zambia:," IFPRI discussion papers 890, International Food Policy Research Institute (IFPRI).
  2. Howie, Peter & Atakhanova, Zauresh, 2014. "Resource boom and inequality: Kazakhstan as a case study," Resources Policy, Elsevier, vol. 39(C), pages 71-79.
  3. Marchand, Joseph, 2014. "The Distributional Impacts of an Energy Boom in Western Canada," CLSSRN working papers clsrn_admin-2014-28, Vancouver School of Economics, revised 16 Jun 2014.
  4. Lee Robinson & Alice Nicole Sindzingre, 2012. "China’s Ambiguous Impacts on Commodity-Dependent Countries: the Example of Sub-Saharan Africa (with a Focus on Zambia)," EconomiX Working Papers 2012-39, University of Paris West - Nanterre la Défense, EconomiX.

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