Resource Curse Research Articles

The race for critical minerals in Africa: A blessing or another resource curse?

There is currently an exponential growth in the global demand for critical minerals, particularly lithium, to meet clean energy and decarbonisation objectives. However, sustainable supply of these minerals is at risk due to declining ore grades, available extraction and processing technologies, socio-environmental concerns, and geopolitical challenges. Africa hosts substantial critical minerals resources, and the continent is currently being positioned as a major global player in the critical minerals supply chain. As a result, there is a rush for Africa's critical mineral resources through investment in exploration activities and license acquisition by foreign mining companies. Drawing on the case of lithium mining in Africa, we analysed the urgency claims of critical minerals in the African context and assessed the inherent socio-ecological impacts. We found that the urgency claims of critical minerals largely serve the geostrategic and economic interests of western countries and China. The rush for Africa's critical minerals is producing significant socio-ecological impacts, including driving loss of rich biodiversity, displacement of communities and breeding new forms of illegalities in the resource sector. Based on our findings, we argue that the current race for Africa's critical mineral resources does not serve the interest of Africa and it is likely to create adverse long-term socio-ecological impacts rather than benefits for the continent unless appropriate sustainable measures, including strategic planning, are carefully considered, and fully implemented. Our findings have implications for policies seeking to promote sustainable and responsible mining in Africa, and elsewhere with similar challenges.

A visual exploration of resource curse in East Kalimantan

Kalimantan has emerged as a primary hub for global coal and palm oil production, particularly in East Kalimantan. This visual essay delves into the concept of the resource curse, examining its potential negative impact on local health and communities, given the heavy reliance on coal and palm oil for economic and infrastructure development. Employing Autophotography during fieldwork research in 2023, the essay presents a series of photographs to prompt discussion and reflection on critical engagement with this ongoing discourse. It underscores Autophotography's role as a critical approach to narrating local narratives and knowledge within a defined conceptual framework aimed at disseminating it to a wider audience. This highlights the potential of visual essays in generating and representing knowledge, thus contributing to knowledge production.

Spatial-Temporal Heterogeneity and Decoupling Mechanism of Resource Curse, Environmental Regulation and Resource Industry Transformation in Post-Development Areas: Evidence from Inner Mongolia, China

Resource curse and environmental regulation are the key bottlenecks that hinder the sustainable development of the resource industry. A reasonable assessment of the decoupling relationship between resource supply, environment regulation and resource industry transformation is helpful to promote the decision-making of industrial restructuring in post-development regions. Taking Inner Mongolia Autonomous Region of China as the research object, panel data related to resources, environment and industry from 2010 to 2021 are selected to evaluate the spatial and temporal evolution of regional resource supply security, environmental regulatory pressure and resource industry transformation efficiency, measure the decoupling index among the factors, and use geographic detector technology to identify the constraints affecting factor decoupling. The results show the following: (1) the resource curse effect of Inner Mongolia is not significant, and some resource industries have prominent advantages; (2) the security of resource supply and the transformation efficiency of the resource industry show overall upward trend, the pressure of environmental regulation is basically balanced, and the development level of factors in resource-endowed regions and central cities is relatively high; (3) the spatial and temporal evolution of the decoupling relationship between resource supply, environmental regulation and resource industry transformation is uncertain, and the resilience of regional economic and social governance is poor; (4) resource endowment and resource industry advantages are the key that restricts the decoupling of factors, and the cumulative effect of ecological governance is likely to lead to the randomness of the decoupling of environmental regulation and resource industry transformation. In addition, this study suggests that the post-development areas should pay attention to the classification of resource industry relief, trans-regional economic and social collaborative governance and special resources exploitation.

Africa’s critical minerals can power the global low-carbon transition.

Abstract The global shift towards low-carbon economies and societies is expected to result in a substantial surge in the demand for critical minerals. Endowed with at least a fifth of the world’s reserves in a dozen minerals, Africa can play a pivotal role in facilitating the global transition away from fossil fuels. In this paper, we argue that, for this to happen, Africa needs to act now to convert its natural assets into sustainable comparative advantages for a resource-based industrialisation. This will require proactive measures to ensure strict compliance with the highest standards of governance and transparency, as well as to uphold social values such as safeguarding basic rights of affected individuals and communities and sound environmental management to avoid falling into a new resource curse. This also requires a renewed global raw material diplomacy in which Africa manages the geopolitics of critical minerals, identifying strategic global alliances to unleash economic potential, create local content in the mining sector, develop domestic productive capacity, and foster sustainable development.

Government digital transformation, resource curse and green total factor energy efficiency in Chinese cities

In the age of digitalization, Government Digital Transformation (GDD) stands out as a critical gauge of a nation's modernization drive. It reflects the extent of modernization within the governance framework and acts as a central catalyst for improving governance efficiency and the overall modernity of the system. Against this backdrop, this study empirically investigates the impact of GDD on green total factor energy efficiency (GTFEE) from 2011 to 2020, focusing on prefecture-level cities in China. Using a two-way fixed-effects model, we analyze how GDD influences GTFEE. Additionally, we explore the mediating effect and threshold models to elucidate the mechanisms underlying the resource curse (RC). The findings of the study are as follows: first, GDD has a promoting effect on GTFEE; second, the promoting effect of GDD on GTFEE is more obvious in southern cities and fourth-tier cities; third, the RC plays a mediating effect in the relationship between GDD and GTFEE, specifically, GDD promotes GTFEE by suppressing the RC effect and then promotes GTFEE; fourth, the present study also identifies a RC threshold effect; when RC < 0.5127, the energy efficiency promotion effect of GDD is relatively limited, while when RC ≥ 0.5127, the promotion effect of GDD on GTFEE is significantly enhanced. These findings are of great value for understanding and optimizing the strategic significance of GDD in enhancing GTFEE. They provide a scientific basis and directional guidance for formulating and implementing related policies.

Impact of natural resource dependence on green technology development: Role of digital governance in mitigating resource-curse using big data

The pursuit of a green economy as a strategy to counteract the “resource curse' phenomenon represents a burgeoning paradigm shift. A sophisticated digital governance infrastructure is vital, serving as an integral mechanism for ensuring transparency, enhancing data efficacy, and fostering public involvement—all crucial components of sustainable environmental stewardship. In light of this context, our analysis examines the interplay between natural resource dependence and green technological innovation, as well as delineating the potential pathways interlinking the two, through an empirical assessment using provincial data from China spanning the years 2011–2021. Employing advanced techniques in big data text mining, we have devised a government digital transformation index calibrated to elucidate the impacts of digitalization on the twin variables of natural resource reliance and the propagation of green technologies. Our findings indicate a marked deleterious influence of natural resource dependence on the evolution of green technological initiatives at the regional level, a trend most pronounced in China's central and western provinces as well as in locales with comparatively low economic development metrics. Furthermore, our research ascertains that the impeding force of natural resource dependence on green technology ascension is primarily exercised through diminished regional research and development capabilities, stagnation of industrial structure progression, and limited openness to external economic integration. Finally, the study posits that the implementation of digital governance measures holds the capability to substantially mitigate the restrictive impact of natural resource dependence on green technology advancement. This underscores the imperative for a digital governance architecture that actively neutralizes and meticulously monitors the adverse outcomes associated with resource consumption.

Expression of concern: Resource curse hypothesis and economic growth: A global analysis using bootstrapped panel quantile regression analysis [Resources Policy, Volume 85, Part A, August 2023, 103790]

Expression of concern: Resource curse hypothesis and economic growth: A global analysis using bootstrapped panel quantile regression analysis [Resources Policy, Volume 85, Part A, August 2023, 103790]

How do fintech, digitalization, green technologies influence sustainable environment in CIVETS nations? An evidence from CUP FM and CUP BC approaches.

The natural resource curse highlights the paradox that nations with enormous reserves endure slower economic expansion than those with limited resources. On the other hand, fintech is revolutionizing the business community while setting the basis for long-lasting growth in CIVETS nations. The ongoing analysis analyzes the topic of ample natural resources promoting economic expansion. The ongoing analysis illuminates the case for CIVETS nations by applying the novel panel data models, the CUPFM and CUPBC tests, through which the analysis authenticates those natural resources augment carbon dioxide emissions. The analysis has taken the period 2000 to 2022. Policy practitioners discover the linkage very inspiring. Natural resources expedite an increment in carbon dioxide emissions in the selected panel. In addition, digitalization and fintech abate the emissions, whereas green technologies must be promoted in these nations for environmentally friendly development. Regarding the outcomes, think tanks should formulate policies encouraging sustainable environment. It incorporates the sustainable usage of natural resources and financing in and boosting fintech. Furthermore, it is mandatory to encourage digitalization and green technologies in the observed nations.

The Curse of Natural Resources Paradox of Abundance: the Case of Venezuela

In the middle of the 20th century, interest in the study of growth arose and the development of the world's economies, especially those on the African continent. The independence of African people after the second world war showed how lack of industrialization and high dependency of natural resources brought a very low economic growth in most of these countries. Although the abundance of natural resources can mean wealth and prosperity to a nation, inefficient exploitation of these resources makes this event a curse and not a blessing. For this reason, the theory of the curse of natural resources appears, which explains the fact that countries rich in these resources are much more vulnerable to low rates of growth and development. In this sense, the present study examines how it materializes this economic phenomenon in Venezuela Finally, it will be shown how institutional weakness and inefficient exploitation of comparative advantage of the territory have become the biggest obstacles to get rid of the curse of natural resources.

The Resurgence of Military Coups in West-Africa States: The Case of Niger Republic and Its Implications on Peace, Security and Transnational Activities in Nigeria

Niger Republic is a country rich in mineral resources (uranium) with astounding and complex relationship with the West, a strategic country provided with supports and collaboration with the West (United States of America) when it comes to fight against terrorism in Africa. Relatively enjoying a stable civilian government before the seemingly unexpected military coup struck and pull out the roots of civilian government and short-lived the democratic government in power. This study aims at; identifying and examining the factors responsible for military coups in West Africa States and Niger republic in 2023, examining the interventions and reactions of Nigerian Government and Economic Community of West Africa States (ECOWAS) and other international organizations towards the Military Coup in Niger Republic, identifying and assessing the implications of the Niger coup on Nigeria national peace, security and socio-economic development as a neighboring State and Economic Community of West Africa States (ECOWAS) in general. In this study, the Resource Curse Theory was used as the theoretical framework of analysis. The data used in this study are primarily and secondarily sourced. The interview was tailored towards eliciting information from key informants, including historians, political scientists, peace and conflict experts, international relations experts, diplomats, staff of foreign affairs ministry and other stakeholders. Secondary data were sourced from publications, editorials, articles, textbooks, journals, newspapers, internet materials in relations to the subject matter. The research work established the fact that security and welfare of the people which is the primary purpose and responsibility of the government has not been adequately attended to due to leadership failure and indiscipline among the political class. However, because of the far-reaching implications of the coup for national life and ECOWAS States at large, the study therefore, recommended, among other things, that all parties involved must embrace peace and come together in order to resolve the matter in a manner that will further promote peace and development in the sub-region.

Natural resources, economic complexity and growth nexus: Role of digital governance in addressing the resource curse

The nexus between natural resources and economic growth can be significantly influenced by digital governance. Effective digital governance enhances transparency and efficiency in managing natural resources, reducing the risks of mismanagement and corruption. This can lead to more sustainable economic growth and support economic diversification. Understanding these dynamics is essential for policymakers and researchers aiming for inclusive growth in resource-dependent economies. Therefore, this study explores the relationship between natural resources, economic complexity and economic growth of BRICS countries from 2003 to 2022. It also explores the moderating role of digital governance in realizing the relationship between resources and growth. The research utilizes the Method of Moments Quantile Regression, which accounts for non-linearity and addresses concerns related to slope heterogeneity. The findings reveal that natural resource rents adversely affect economic growth, with a significantly negative impact at the lowest quantiles, while digital governance fosters economic growth at the middle to highest quantiles. The moderating effects of natural resources and digital governance suggest that digital governance helps break the cycle of the resource curse. Countries can enhance the marginal contribution of resources towards growth by increasing the digitalization of their systems and processes. Additionally, economic complexity contributes to higher economic growth, with its impact gradually increasing from lower to upper quantiles. Policymakers should consider digital governance as an effective tool for sustainable development.

Role of mineral-based industrialization in promoting economic growth: Implications for achieving environmental sustainability through financial management

Industrialization based on mineral resources has historically been pivotal in driving many countries' economic development and growth. This study emphasizes the need to understand the intricate link between mineral-driven economic development and ecological responsibility. The present study utilized annual data from 1990 to 2022 and employed the Johanson approach to experimentally evaluate the impact of mineral-based industrialization on economic growth in the context of Canada. Johnson Cointegration analysis and the dynamic error corrections model confirmed long-run and short-run relationships among economic growth, and other independent variables (financial management, technological innovation, energy use, mineral rent, abundance of natural resources). In the long run abundance of natural resources shows a negative impact on economic growth by (−0.02) highlighting the validation of the environmental resource curse hypothesis. The coefficient of financial management indicates 1% increase in financial management will result in an improvement in economic growth of 0.11%. Mineral rent shows a positive and significant relationship with economic growth. Moreover, estimates of technological advancement show that a 1% increase in technological advancement will result in economic growth of 1.12%. The study further suggests that policymakers should diversify the economy by investing in the non-mineral sector and promoting innovation to reduce reliance on resource-dependent revenue. Lastly, funds must be allocated to educational and training initiatives to provide local laborers with the cutting-edge expertise required for mineral processing.

From resource curse to green growth: Exploring the role of energy utilization and natural resource abundance in economic development

From resource curse to green growth: Exploring the role of energy utilization and natural resource abundance in economic development

Do financial institutions and financial markets evenly influence natural resource and growth nexus in the caucasus and central Asia

Economic sustainability is among the utmost policy concerns for global economies, particularly for Caucasus and Central Asia (CCA) countries, which are confronting inhibitory economic growth due to the resource curse paradox. Financial development (FD) and its disaggregating factors, i.e., financial institutions (FI) and financial markets (FM), may distinctly contribute to economic growth. Therefore, this study scrutinizes the impact of FD, FM, FI, and natural resources (NR) on economic growth by utilizing the data from 1991 to 2022. This study employs the panel-correlated standard error (PCSE) approach to estimate the parameters. The overall results show that FD significantly promotes economic growth. The FD-related sub-components exert variant effects; FM encourages while FI impedes economic growth. In CAA countries, the insignificant coefficients of NR reveal that NR does not contribute to economic growth. In addition, the integrating terms of NR*FD, NR*FM, and NR*FI exhibit positive effects on economic growth by 0.024%, 0.016%, and 0.025%. It illustrates that countries with solid financial structures have enormous potential to reap the maximum benefits from abundant resources through efficient financial resource management. Moreover, the authentication of the estimated outcomes is confirmed through robustness analysis, and all the model variables have bidirectional causality.

Mitigating resource curse impact through implementing circular economy effective strategies

The main goal of the study is to investigate and to evaluate the selected indicators of the circular economy with a relation to the international trade in order to create the effective tools and policies in the circular economy system. This is supported by the three research questions comprising the issues of the circular economy regarding the import and the export of the resources. Firstly, the intra-union and extra-union import of the materials and their impact along with the resource curse effects. The relations between the both import types and the circular material use rate are confirmed through a majority of the appropriate research hypotheses. Secondly, the resource curse negative impacts caused by the import and the export of the circular economy materials. The international trade brings the resources movements that would be not possible without it. Almost all the assigned research hypotheses confirm that the mentioned impacts are mitigated by these movements. Thirdly, the influence of the import and the export of the materials on the circular material use rate regarding the waste sort recycling rates. An influence of the international trade is occurred in the recovery rate that represents an outcome of recycling rate. Each research hypothesis is assigned to the particular explored indicator. Altogether, there are the 21 indicators examined in the regression analysis. Many relations regarding the statistical significance of the regressor are found. The testing phase follows after the regression model outcome. The discussion section demonstrates the implications arising from the analytical outcomes with a potential of altering the current policies in the circular economy system and the creation of the new ones in order to more efficiently use the available resources. The study outcome represents a valuable platform for potential construction of the effective policies and strategies necessary for implementing transition of the economies within the circular economy framework.

Asymmetric influence of fintech, oil prices, and precious metals on green growth of emerging seven countries

The resources and financial technology can be a powerful driver of sustainable economic growth and financial stability in emerging countries. Understanding the pivotal role behind gold, oil, and fintech in achieving green growth, this study intends to establish a cross-section association for Emerging (E-7) countries: Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. The annual data of gold, silver, oil, fintech, and green growth from 1991 to 2022 has been used for empirical analysis. Method of Moment Quantile Regression (MMQR) has been employed to scrutinize the impact of said variables at several quantities of green growth. All variables are measured at the same unit using their respective local currency rates. The outcomes revealed that oil, gold, and silver prices influence the green growth of the E-7 economies. However, this negative impact validates the resource curse phenomenon for the sampled countries. Manifestly, fintech improves the conventional mode of the economic cycle in emerging countries and encourages green growth. The bidirectional causality is also observed between minerals, financial technology, and green growth. The study furnishes notable policies regarding mineral resource dependency as sustainable economic development is desirable for emerging nations.

Identifying the path choice of digital economy to crack the “resource curse" in China from the perspective of configuration

Against the backdrop of the “green economy", economic growth and environmental protection are perceived as interdependent and inseparable entities. The digital economy, as a novel economic paradigm, plays a crucial role in unraveling the “resource curse" of excessive resource consumption under traditional development models. This study employs the fuzzy set qualitative comparative analysis (fsQCA) method investigate the configuration effects of technical, organizational, and environmental factors on addressing the “resource curse" across 30 provinces (autonomous regions, municipalities) in China. It also examines the interactive matching relationships among different factors and the heterogeneity of the digital economy in mitigating the “resource curse". It is significantly established that breaking the “resource curse" does not have a single necessary condition, and the environmental factors emerge as pivotal elements for each province in this process. Considering the role of digital economy, there are four distinct configuration paths for the digital economy to mitigate the “resource curse", each exhibiting significant regional and industrial dependence heterogeneity. This research approach integrates the digital economy with traditional resource economies, aiming to explore new development patterns and theoretical frameworks. It also seeks to provide policymakers with practical strategies to guide economic and social transition towards a modernized path characterized by green, circular, and efficient development with the aid of the digital tools.

How export and import concentration influence natural resources and green growth nexus in OECD countries

Green growth (GG) is a multifaceted phenomenon that maintains environmental sustainability with economic growth; however, the resource curse paradox inhibits economic growth. Therefore, it is indispensable to explore the promoting factors of GG, comprising export diversification (EXD), import diversification (IMPD), and natural resources (NR) for 33 selected OECD economies from 2010 to 2022. The system generalized moment method (System-GMM) is employed for empirical investigation, elucidating that EXD associates negatively with GG. However, IMPD significantly encourages the GG by unveiling the positive relationship. NR negatively associated with GG and confirms the resource curse hypothesis. The integrative impact of EXD and IMPD mitigates the resource curse, driving GG by 0.012% and 0.018%, respectively, implying that diversified trade structures in imports and exports convert the resource curse problem into a blessing. Besides, the alternative panel estimator affirms the empirical outcome endorsed by the system-GMM model. Among all variables, EXD, IMPD, and NR reveal the bi-directional causality, while remaining show the unidirectional association. The findings recommend valuable policy ramifications to policymakers of OECD countries in attaining green and low-carbon economies.

Deciphering the resource wealth enigma: Unraveling the interplay of institutional quality, economic diversity, and R&D in mitigating the resource curse

The study explores the multipart dynamics of resource wealth, institutional quality, economic diversity, R&D outputs and their interplay with “resources curse” by analyzing data from 2008 to 2019 for 18 G member countries. The study discovers that natural resource abundance can be a double-edged sword, potentially restricting R&D operations and offering the financial ability to fund these ventures. It clarifies that the “curse” depends on a wide range of economic, institutional, and sociopolitical conditions rather than an inevitable result. The strength of the institutions and economic diversity stand out as important mitigating factors among these elements. The study emphasizes how crucial institutional stability and openness are to protecting R&D projects from the resource curse's damaging effects. It encourages them to create a varied economic basis that fosters innovation and protects against resource-based vulnerabilities. The study also highlights how green, sustainable R&D activities can promote economic growth and environmental protection. It envisions a balanced growth trajectory in which natural resource riches are deliberately used to build a sustainable, innovation-driven future. The study promotes proactive policy initiatives and global collaboration among G20 economies to turn the resource curse into a driver for innovation and sustainable economic growth. This study provides valuable insights for policymakers, academics, and practitioners by demonstrating the nuanced relationship between natural resource richness and R&D activity in G20 economies. It adds to the conversation about sustainable economic development by challenging the international community to reconsider the myth of resource plenty and how it affects creativity.

Revisiting the relationship between natural resources and environmental quality— can ICT break the “resource curse” in the environment?

Despite the prevalence of discussions on the “resource curse”, the impact of natural resources on environmental quality for better or for worse has not been clearly answered, this study aims to answer the question by introducing the role of Information and Communication Technologies (ICT). To that end, by using the Instrumental Variable Generalized Method of Moments (IV GMM) estimator and a sample of 102 developing and emerging economies from 2006 to 2016, this paper studies the impact of ICT on the relationship between natural resources and environmental quality. Specially, the Environmental Performance Index (EPI) captures the environmental quality. The results show that natural resources have a significant negative effect on EPI, specially, EPI decreases by one unit with a 1% increase in natural resource rents. ICT significantly mitigates this adverse effect, and marginal effects analysis further confirms its positive moderate effects. The results proved to be robust by Lewbel 2SLS and Driscoll-Kraay techniques or other robust tests. It is noteworthy that the adverse effect of natural resources on EPI is greater and the mitigating effect of ICT is more pronounced in low-income countries and lower-middle income countries. Overall, these results remind resource-based countries to vigorously develop ICT, and apply intelligent exploration, digital monitoring, or other digital technologies to realize the high-efficiency use of natural resources, reducing environmental pollution and ecological damage.