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The Political Economy of Mining regulations 2015: Spatial Inequality and Resource Curse in Two New States, India

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  • Chakraborty, Lekha S
  • Garg, Shatakshi

Abstract

It is striking why the resource-rich States in India are income poor. This calls for analyzing the fiscal policy practices in the resource-rich new States, particularly the fiscal space created by the mining proceeds; and in turn what the fiscal space is used for. Inquiring the “use of mining fiscal space” has high policy relevance in India, against the backdrop of recent Mines and Minerals Development and Regulation (MMDR) Amendment Bill, 2015. Such policy imperatives are comparable to the global initiatives like “oil-to-cash policy”. This paper explores the plausible impacts of MMDR 2015 (9B), which stipulates a portion of mining royalty and auction proceeds to redress the resource curse. Though nebulous estimates from the coal auction proceeds are on board, ambiguity remains how the newly generated fiscal space would resolve spatial inequalities.

Suggested Citation

  • Chakraborty, Lekha S & Garg, Shatakshi, 2015. "The Political Economy of Mining regulations 2015: Spatial Inequality and Resource Curse in Two New States, India," MPRA Paper 67428, University Library of Munich, Germany, revised Oct 2015.
    • Handle: RePEc:pra:mprapa:67428
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    References listed on IDEAS

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    3. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    4. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
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    7. Chakraborty, Lekha, 2014. "Revival of mining sector in India: Analysing legislations and royality regime," Working Papers 14/129, National Institute of Public Finance and Policy.
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    Cited by:

    1. Krishnan, Pramila & Dhillon, Amrita & Patnam, Manasa & Perroni, Carlo, 2016. "Electoral Accountability and the Natural Resource Curse: Theory and Evidence from India," CEPR Discussion Papers 11377, C.E.P.R. Discussion Papers.
    2. Amrita Dhillon & Pramila Krishnan & Manasa Patnam & Carlo Perroni, 2020. "Secession with Natural Resources," The Economic Journal, Royal Economic Society, vol. 130(631), pages 2207-2248.
    3. Dhillon, Amrita & Krishnan, Pramila & Patnam, Manasa & Perroni, Carlo, 2016. "The Natural Resource Curse Revisited:Theory and Evidence from India," CAGE Online Working Paper Series 268, Competitive Advantage in the Global Economy (CAGE).

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    More about this item

    Keywords

    Political economy; Regulations; Mining; Industrial Policy; Fiscal Space; Inequality; Human Development;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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