What conditions may foster an industrial development strategy based on extractive industries?

Abstract

Our work provides a selective survey of the literature on the relation between natural resources and industrialization, with a focus on extractive industries. The paper consists of three sections. First, it discusses the main problems identified by the scholars in relation to the abundance of natural resources. Second, it addresses two dimensions of the nexus between natural resources and industrial development: a fiscal one and a productive one. Third, it critically examines the two dimensions in order to find the conditions needed to set up a strategy of industrial development applicable to the extractive industries. Then, it briefly discusses some relevant issues partially neglected in early literature, and then suggests insights for further research.

Ecological distribution conflicts (EDCs) over mineral extraction in India: An overview

“…In addition, being at the centre of powerful interests, extractive actors are often closely linked with the local political landscape and are known for interfering in it, for example by silencing critical voices or forming mafias (Acosta, 2013;Svampa, 2013). This typically explains the unequal distribution of costs and benefits, including health risks, environmental impacts and monetary benefits (Mancini andPaz, 2016 Murguía andBöhling, 2013;Maconachie, 2016). Bunker (1985, p. 24) introduced the concept of "extreme peripheries" to describe "those [regions] whose economic ties to the world [or national] system are based almost exclusively on the exchange of extracted commodities".…”

Natural resource funds for innovation in emerging countries: an assessment of the Chilean experience

“…The experience of currently developed countries such as Australia, Finland, Norway or Sweden demonstrates how revenues from natural resources can be used to foster innovation and drive economic diversification (Blomström and Kokko, 2007; Ville and Wicken, 2013). While they may act as a “curse” on economic development (Robinson et al , 2006), revenues from natural resources can also spur more sustainable development trajectories in emerging countries (Botlhole et al , 2012; Mancini and Paz, 2016). However, the existing literature stresses that institutional quality is a sine qua non condition for preventing the misuse of natural resources and transforming them into a catalyst for socioeconomic development (Larsen, 2006; Mehlum et al , 2006; Robinson et al , 2006).…”

Liquefied Natural Gas: Redefining Nature, Restructuring Geopolitics, Returning to the Periphery?

“…At the local level, raw materials extraction is generally regarded as an uncertain and unstable basis for economic development (Freudenburg 1992;Freudenburg and Wilson 2002;Wilson 2001;Krannich et al 2014;Jacquet and Kay 2014;Kinchy et al 2014;Mancini and Paz 2016). Dramatic price fluctuations in markets for raw materials, falling demand for raw materials during economic downturns, difficulties in reducing extractive production because of huge sunk costs in mines, wells, and infrastructure, and the reluctance of governments in extractive states to reduce exports because of dependence on export revenues, combine to drive and exacerbate boom and bust cycles of demand for natural resources (Bunker 1985;Bunker and Ciccantell 2005;Freudenburg 1992;Freudenburg and Wilson 2002;Wilson 2001Wilson , 2004.…”