Asian-driven resource booms in Africa: Rethinking the impacts on development

Clemens Breisinger () and James Thurlow

No 747, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: "Today's resource boom in Africa, driven by Asian economic growth, offers new opportunities for resource-rich African countries. Contrary to the experience of previous booms, however, most mining profits now accrue to foreign companies, leaving little room for governments to use revenues for pro-poor investments or to mitigate adverse distributional impacts. Taking Zambia as a case study, this paper shows that despite privatization, Dutch disease remains a valid concern and may hamper economic diversification, worsen income distribution, and undermine poverty reduction strategies. Mining royalties must, therefore, be increased and used to finance growth-inducing investments that encourage pro-poor economic diversification, else many African countries will remain caught in a resource trap." from Author's Abstract

Keywords: currencies; economic development; price volatility; privatization; income distribution; Zambia; Africa; Southern Africa; Sub-Saharan Africa; Eastern Africa (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-afr, nep-dev and nep-sea
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:fpr:ifprid:747

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