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Extractivism and transition in Africa : opportunities and challenges

Thesis (MPhil) Stellenbosch University, 2014 / ENGLISH ABSTRACT: Existence of natural resources in majority of African countries has been identified to support further
development due to continuously increase in commodity revenues. However, the resource curse
presents critical aspects of resource intensive economies such as short-term benefits of
commodity revenues, limited economic diversification and unstable government. Due to natural
resource abundance in Africa, extractive industries are essential in the domestic economic system,
although, the disadvantages based on the resource curse theory, question the support of
commodity revenues in Africa’s development.
South America views the issues of extractive industries from a different perspective by analysing
the related developmental approaches namely conventional extractivism, neo-extractivism and
post-extractivism. While South American countries are in different transition phases of extractivism,
Africa is dominated solely by conventional extractivism. This results in varying degrees of social
and environmental impacts on the African continent. However, Africa’s transition towards neo- or
post-extractivism will limit the problems of the resource curse and offers a more sustainable
resource management of the extractive industries.
The Environmental Kuznets’ Curve (EKC) supports the principle of developed and recently
industrialised countries by relying on the economic development, which will reduce environmental
degradation automatically by achieving a specific turning point. The three phases of EKC can be
related to different stages of economic development, as well as to the three extractivism
approaches. Therefore, transitions from conventional extractivism to neo-extractivism and finally to
post-extractivism have to occur to stabilise economic development and reduce environmental
degradation.
Within this process of transition towards more sustainable extractivism approaches, the principle of
“Sustainable Structural Transformation” (SST) is applicable. SST was described in the UNCTAD
report (2012) as a tool to reduce environmental impacts while continuing to provide for the demand
of an increasing global population. Neo- and post-extractivism approach supports the concept of
SST, which primarily emphasises more efficient technologies, new economic activities, labour
productivity and regulations. The foundation of SST is based on resource decoupling in order to
separate economic developmental process from natural resource extraction while minimizing
environmental impacts. For the application of SST and thus for the transition of extractivism,
reinvestment is essential to create a diversified economy. While reinvestment can take place in
various forms, the World Bank (2011) identified three types of wealth namely natural, produced
and intangible capital contributing to the total wealth of a country. However, developing countries
prioritise natural wealth in comparison to other forms of wealth; therefore, reinvestment has to take place in other types of wealth namely intangible and produced wealth in order to achieve
sustainable development in Africa.
UNCTAD (2012) considers SST as a framework without an attempt of creating a “one-size-fits-all”
solution. This understanding is crucial for the transition from one phase of extractivism to another.
Depending on the context of a country, tools have to be adapted to support the needed transition.
These existing differences are presented in the case studies of Nigeria and Botswana, which are
two developing countries in Africa but they present different stages of extractivism and resource
management. / AFRIKAANSE OPSOMMING: Daar is vasgestel dat die beskikbaarheid van natuurlike hulpbronne in ’n meerderheid van Afrikalande
verdere ontwikkeling ondersteun deur ’n ononderbroke toename in grondstofinkomstes. Die
hulpbronvloek wys egter kritisie aspekte van hulpbron-intensiewe ekonomieë uit. Van hierdie
aspekte sluit in korttermynvoordele van grondstofinkomstes, beperkte ekonomiese diversifisering
en onstabiele regerings. Weens die oorvloed van natuurlike hulpbronne in Afrika is
ontginningsnywerhede onontbeerlik in die binnelandse ekonomiese stelsel, alhoewel die nadele
wat deur die hulpbronvloekteorie uitgewys word die ondersteuning van grondstofinkomstes in
Afrika se ontwikkeling bevraagteken.
Suid-Amerika beskou die kwessie van ontginningsnywerhede vanuit ’n ander perspektief deur die
verwante ontwikkelingsbenaderings, naamlik konvensionele ontginning, neo-ontginning en
postontginning, te ontleed. Alhoewel Suid-Amerikaanse lande in ander oorgangsperiodes van
ontginning verkeer, word Afrika slegs deur konvensionele ontginning oorheers. Dit lei tot
wisselende grade van sosiale en omgewingsimpakte op die Afrika-kontinent. Afrika se oorgang na
neo- en postontginning sal egter die uitdagings van hulpbronvloek beperk en bied ’n meer
onderhoubare hulpbronbestuur van die ontginningsnywerhede.
Die Omgewing-Kuznetskurwe (OKK) ondersteun die beginsel van ontwikkelde en onlangs
geïndustrialiseerde lande. Hierdie ondersteuning geskied deur staat te maak op die ekonomiese
ontwikkeling wat outomaties omgewingsagteruitgang sal verminder deur ’n spesifieke keerpunt te
bereik. Die drie fases van die OKK kan met verskillende fases van ekonomiese ontwikkeling asook
die drie ontginningsbenaderings verbind word. Om hierdie rede moet oorgange van konvensionele
ontginning na neo-ontginning en uiteindelik postonginning plaasvind om die ekonomiese
ontwikkeling te stabiliseer en die omgewingsagteruitgang te beperk.
Die beginsel van “Onderhoubare Strukturele Transformasie” (OST) is veral toepaslik in die
oorgangsproses na meer onderhoubare ontginningsbenaderings. Die OST is in die verslag van die
Verenigde Nasies se Kongres van Handel en Ontwikkeling (VNKHEO) (2012) beskryf as ’n middel
om omgewingsimpakte te beperk terwyl dit in die behoefte van ’n toenemend groeiende
wêreldbevolking voorsien. Neo- en postontginningsbenaderings ondersteun die OST-konsep wat
veral meer doeltreffende tegnologieë, nuwe ekonomiese aktiwiteite, arbeidsproduktiwiteit en
regulasies benadruk. Vir die toepassing van OST en dus die verandering in ontginning is
herbelegging noodsaaklik om ’n gediversifiseerde ekonomie te bewerkstellig. Alhoewel
herbelegging op verskillende maniere kan plaasvind, het die Wêreldbank (2011) drie tipes rykdom
geïdentifiseer, naamlik natuurlike, vervaardigde en ontasbare kapitaal wat tot die algehele rykdom
van ’n land bydra. Ontwikkelende lande gee voorkeur aan natuurlike rykdom teenoor ander vorme
van rykdom. Om hierdie rede moet herbelegging binne die ander vorme van rykdom plaasvind om onderhoubare ontwikkeling in Afrika teweeg te bring. Hierdie ander vorme van rykdom sluit
ontasbare en vervaardigde rykdom in.
VNKHEO (2012) beskou OST as ’n raamwerk wat nie poog om ’n “one-size-fits-all”-oplossing voort
te bring nie. ’n Oorkoepelende benadering is kardinaal om die verandering in ontginning teweeg te
bring. Afhangende van die konteks van ’n land moet middels aangepas word vir die nodige
ondersteuning van die verandering. Hierdie bestaande verskille word in die gevallestudies van
Nigerië en Botswana uitgewys. Dié twee lande dui op twee verskillende ontginningstadia en
hulpbronbestuur.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/86449
Date04 1900
CreatorsHuber, Maria
ContributorsSwilling, Mark, Stellenbosch University. Faculty of Economic & Management Sciences. School of Public Leadership.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format104 p.
RightsStellenbosch University

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