Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries

Massimo Morelli and Dominic Rohner

No 698, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University

Abstract: This handbook chapter studies how natural resource wealth can in many contexts fuel armed conflict. Starting from a simple theoretical model, we stress the role of geography and power mismatch in the so called "natural resource curse". Drawing on recent empirical evidence, the importance of resource abundance, asymmetry and capital-intensiveness is highlighted, alongside local grievances and international interventions. We propose a series of evidence-driven policy conclusions, ranging from "smart green transition" and democratic institution building over labor-market intervention to a series of specific policies requiring international coordination. Keywords: Natural Resources, Mining, Conflict, commitment problems, power mismatch JEL Classification: D74,Q34

Date: 2023
New Economics Papers: this item is included in nep-dev, nep-ene and nep-env
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