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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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Politics of Natural Resources

“As we progressively understood the causes of environmental degradation, we saw the need for good governance. Indeed, the state of any country’s environment is a reflection of the kind of governance in place, and without good governance there can be no peace. Many countries, which have poor governance systems, are also likely to have conflicts and poor laws protecting the environment.” Wangari Maathai, President, Greenbelt Movement, Kenya; Nobel Prize Winner.

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