The essential advantage of the mineral economies lies in their possession of a resource that is readily converted into a large financial flow, much of it in the form of foreign exchange. However, the mineral economies must contend with the fundamental fact that their mineral wealth is exhaustible. Thus, mineral economies tend to be especially characterized by technological and wage dualism; they are prone to neglect their non-mineral sectors; their export earnings are often marked by instability; and they are subject to strong inflationary pressures. Further, to maximize their benefits they must exact the economic rents inherent in the production and sale of their mineral resources, thus requiring to pay special attention to mineral taxation, participation in the mining industry, and negotiations with foreign mining companies. Finally, the mineral economies need to adopt a strategy which, through an efficient sequencing and sectoral distribution of investments, will create a diversified and growing economy before their mineral rents wither away. These problems and objectives, the paper concludes, require a wide array of policy changes that are largely institutional in nature.
Stored only when both papers are in the corpus — 95 citations exist upstream.
Imported from OpenAlex (CC0) — nothing here is generated.