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The Critical Minerals Curse

Author

Listed:
  • Rabah Arezki
  • Frederick van der Ploeg
  • Rick van der Ploeg

Abstract

Economic super-powers are racing to control critical minerals in developing economies fueling conflict, environmental damage and poverty. In this paper, we first explore what could well constitute a new “critical minerals curse”. We then highlight the dualism of institutions required for developing countries to navigate the phenomenon. Specifically, we argue that the difficulty for developing countries rich in minerals lies in the balancing act between these two different types of institutions, namely outward- and inward-facing institutions.

Suggested Citation

  • Rabah Arezki & Frederick van der Ploeg & Rick van der Ploeg, 2025. "The Critical Minerals Curse," CESifo Working Paper Series 11966, CESifo.
    • Handle: RePEc:ces:ceswps:_11966
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp11966.pdf
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    Keywords

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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F10 - International Economics - - Trade - - - General
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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