There has been considerable research over the years regarding the relationship between
natural resource abundance and economic growth, yet much less is known about the link
between natural resource abundance and prevalence of poverty. This thesis examines the
question of whether mineral resource rents have helped to reduce poverty rates in countries with
an extensive mineral base in a cross country case study analysis involving Botswana, Nigeria,
Zambia, Bolivia, Chile, and Venezuela. The link between mineral rents and poverty is studied in
the context of four major mechanisms; (1) the redistribution of resources across sectors of the
economy (‘Dutch Disease’), (2) the distribution of rents between the domestic country with the
natural resources and foreign extraction firms, (3) the allocation of resources among citizens, and
(4) the reallocation of rents over time (for precautionary saving). While none of the countries
have achieved substantial economic diversification, Chile emerges as the best performer in this
case study. Chile has utilized its extensive mineral base to achieve strong economic growth as
well as significant poverty reduction. Facilitating an encouraging private investment climate or a
mix of public and private ownership that does not sacrifice productivity and efficiency seems to
work in appropriating a stable and fair share of mineral rents. Rents that are prudently invested
in the domestic economy, in foreign assets for precautionary saving, and in targeted policies
designed to redistribute resources more equally among citizens can significantly reduce poverty,
and increase social and economic development.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:NSHD.ca#10222/14226 |
| Date | 29 August 2011 |
| Creators | Ormonde, Pamela |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
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