Abstract
Countries that rely on natural resource rents (that is, the revenue generated from the sale of natural resources) may suffer from a variety of social problems. This exploratory study reviews the natural resource extraction literature to derive a ‘natural resource rents–homicide’ hypothesis. Data for 173 countries for the years 2000 to 2012 are examined to determine if there is a correlation between natural resource rents and homicide rates. Multilevel growth models suggest that natural resource rents are positively correlated with homicide rates within countries (level 1) but not between them (level 2). Importantly, the correlation between natural resource rents and homicide is strongest when natural resource rents are lagged. We conclude by suggesting that increasing natural resource rents may be counterproductive over the long run and sow the seeds for a future increase in homicide.
Highlights
Recent studies have found that excessive dependence on natural resource extraction revenue tends to be associated with elevated levels of crime in local settings
As an extension of this position we argued that a reliance on natural resource rents (NRR) may disrupt and disorganize social life and lead to higher levels of homicide
The relationship between NRR and homicide does not appear between countries and highextraction countries do not, on average, tend to have higher homicide rates
Summary
Recent studies have found that excessive dependence on natural resource extraction revenue tends to be associated with elevated levels of crime in local settings (for example, Archbold et al, 2014; Carrington et al, 2011; Price et al, 2014; Ruddell, 2011; Ruddell et al, 2014). Jacquet (2014: 8321) describes four general types of problem that occur from an over-reliance on NRR: ‘(1) rapid industrialization and loss of governance, (2) uneven distribution of costs and benefits, (3) conflict, and (4) social-psychological stress and disruption.’ These potential adverse outcomes have led a variety of sociologists and development scholars to investigate the relationship between high NRR economies and wellbeing in the case of timber (Fisher, 2001; Wunder, 2001), oil (Obi, 2010), coal (Perdue and Pavela, 2012) and mineral mining (Pegg, 2006). Together these wellbeing studies suggest that a variety of social problems, including homicide, are likely to occur when governments and policy-makers pursue high NRR to boost economic growth
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