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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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    References listed on IDEAS

    as
    1. David Y. Albouy, 2012. "The Colonial Origins of Comparative Development: An Empirical Investigation: Comment," American Economic Review, American Economic Association, vol. 102(6), pages 3059-3076, October.
    2. Arezki, Rabah & van der Ploeg, Frederick & Toscani, Frederik, 2019. "The shifting natural wealth of nations: The role of market orientation," Journal of Development Economics, Elsevier, vol. 138(C), pages 228-245.
    3. Conley, Timothy G. & Kelly, Morgan, 2025. "The standard errors of persistence," Journal of International Economics, Elsevier, vol. 153(C).
    4. Rabah Arezki & Raouf Boucekkine & Jeffrey Frankel & Mohammed Laksaci & Rick van Der Ploeg, 2018. "Rethinking the macroeconomics of resource-rich countries," Post-Print hal-01825465, HAL.
    5. Leruth, Luc & Mazarei, Adnan & Regibeau, Pierre & Renneboog, Luc, 2022. "Green Energy Depends on Critical Minerals. Who Controls the Supply Chains?," Other publications TiSEM 61051d4e-26c6-4cbd-b039-4, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

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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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