Natural Resources and Pro-Poor Growth

The Economics and Politics

image of Natural Resources and Pro-Poor Growth

This publication demonstrates that natural resources can contribute to growth, employment, exports and fiscal revenues in low-income countries, where natural capital constitutes a quarter of total wealth. It highlights the importance of policies encouraging the sustainable management of these resources. Moreover, it emphasises the need to address the political challenges of natural-resource management for long-term pro-poor economic growth. Part I provides an overview of the economics and politics of natural resources. It describes the unique features of natural resources and resulting management challenges, the role of sustainable natural resource management in supporting pro-poor growth, and the politics and governance of natural resources. It then offers recommendations for policy makers on how to support the approaches advocated in the paper. Part II examines these issues with respect to seven specific natural-resource sectors: fisheries, forests, wildlife and ecotourism, soil productivity, water security, minerals and renewable energy.

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Minerals and Pro-Poor Growth

Rising demand for mineral resources from fast-growing markets in Asia has contributed to a surge in mineral prices over the past five years. This is particularly true of metals such as aluminium, nickel, copper and zinc. The boom in mineral commodity prices has highlighted the impact of mineral exploitation on development processes. Yet mineral markets are volatile and the contribution of mining activities to positive long-term development outcomes, such as the attainment of the MDGs and sustainable development, during this period of opportunity has never been under closer scrutiny.

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