Mainstreaming Mineral Wealth in Growth and Poverty Reduction Strategies

Abstract

Many studies claim that mineral resources impact negatively on economic growth particularly in developing countries. This paper briefly reviews this argument (the natural resources curse hypothesis) and subjects it to examination. The paper argues that poor performance is not an inherent characteristic of minerals‐driven economies. It considers mineral endowments a capital that can spur growth and reduce poverty in developing countries if deployed under appropriate conditions. The paper identifies the benefit streams of mining and the challenges for their equitable creation, investment, distribution and management. It articulates the conditions, success factors and strategies to maximizing the contribution of the minerals sector to growth and development in Africa. The entry points include creating a conducive and competitive policy, legal and regulatory environment and frameworks for business development; improving governance and management systems anchored on strong and capable institutions; opening up ...