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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Soil Productivity and Pro-Poor Growth

This chapter and the next, on water security and pro-poor growth, are fundamentally different from the others in that they do not concern natural resources which can provide direct sources of income, but rather resources that underpin the production of a wide range of agricultural and industrial goods and services. The contribution of soil and water resources to pro-poor growth is indirect. It can only be derived from the importance of the many sectors that rely directly on soil and water productivity as inputs, in particular into agriculture.

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