Advertisement

Natural Resources

  • Jewellord Nem Singh
Chapter
Part of the Palgrave Handbooks in IPE book series (PHIPE)

Abstract

This chapter examines how common international factors, namely the China-induced resource boom, shaped the rise of ‘resource nationalism’ in Latin America. A central feature of resource growth policies is the move to maximize and reinvest natural resource rents to improve productivity and support sectoral development. The chapter argues that governments were more successful at capturing windfall profits but less so in capital reinvestments and promoting structural transformation. Specifically, an emphasis on continuous extraction of resources rather than on enhancing human capital, innovation systems, and the manufacturing sector ultimately characterized this policy shift. Moving forward, the challenge is how to promote structural transformation through industrial policy especially when windfall profits are limited by fluctuating prices and uncertainty in the global resource industry.

Keywords

China Resource-based growth Industrial policy Latin America Mining Oil and gas 

References

  1. Amsden, Alice. 2007. Escape from Empire: The Developing World’s Journey Through Heaven and Hell. Cambridge, MA: MIT Press.Google Scholar
  2. ———. 2001. The Rise of the Rest: Challenges to the West from Late Industrializing Countries. Oxford: Oxford University Press.Google Scholar
  3. Auty, Richard M. 1993. Sustaining Development in Mineral Economies: The Resource Curse Thesis. London: Routledge.Google Scholar
  4. ———., ed. 2001. Resource Abundance and Economic Development. Oxford: Oxford University Press.Google Scholar
  5. Barbier, Edward. 2003. The Role of Natural Resources in Economic Development. Australian Economic Papers 42 (2): 253–C272.Google Scholar
  6. ———. 2005. Natural Resources and Economic Development. Cambridge: Cambridge University Press.Google Scholar
  7. Barham, B., et al. 1994. States, Firms, and Raw Materials: The World Economy and Ecology of Aluminum. Madison: University of Wisconsin Press.Google Scholar
  8. Beblawi, Hazem, and Giacomo Luciani, eds. 2016. The Rentier State. London: Routledge.Google Scholar
  9. BP Statistical Review of World Energy. 2016. Available at http://www.bp.com/statisticalreview. Accessed 28 Aug 2017.
  10. Brautigam, Deborah. 2002. Building Leviathan: Revenue, State Capacity and Governance. IDS Bulletin 33 (3): 10–20.Google Scholar
  11. ———. 2009. The Dragon’s Gift: The Real Story of China in Africa. Oxford: Oxford University Press.Google Scholar
  12. ———. 2013. China and Africa: A Century of Engagement. International Affairs 89 (2): 543–544.Google Scholar
  13. Breslin, Shaun. 2013. China and the Global Political Economy. New York: Palgrave Macmillan.Google Scholar
  14. Brooks, Sarah, and Marcus Kurtz. 2016. Natural Resources and Economic Development in Brazil. In New Order and Progress: Development and Democracy in Brazil, ed. Ben Ross Schneider. Oxford: Oxford University Press.Google Scholar
  15. Bunker, Stephen G. 1985. Underdeveloping the Amazon: Extraction, Unequal Exchange, and the Failure of the Modern State. Urbana: University of Illinois Press.Google Scholar
  16. Campbell, Bonnie, ed. 2009. Mining in Africa: Regulation and Development. London: Pluto Press.Google Scholar
  17. Cardoso, Fernando Henrique, and Enzo Faletto. 1979. Dependency and Development in Latin America. Berkeley/Los Angeles: University of California Press.Google Scholar
  18. Carmody, P. 2013. The Rise of the BRICS in Africa: The Geopolitics of South-South Relations. London: Zed Books.Google Scholar
  19. ———. 2016. The New Scramble for Africa. 2nd ed. Cambridge: Polity Press.Google Scholar
  20. Carmody, P., and P. Kragelund. 2016. Who Is in Charge? State Power and Agency in Sino-African Relations. Cornell International Law Journal 49 (1): 1–23.Google Scholar
  21. Carmody, P., and I. Taylor. 2010. Flexigemony and Force in China’s Resource Diplomacy in Africa: Sudan and Zambia Compared. Geopolitics 15 (3): 496–515.Google Scholar
  22. Castillo, Mario, and Antonio Martins. 2016. Premature Deindustrialization in Latin America, CEPAL Serie Desarollo Productivo No. 205. Santiago de Chile: ECLAC Publications.Google Scholar
  23. Cheng, Leonard. 2016. Three Questions on China’s “Belt and Road Initiative”. China Economic Review 40: 309–313.Google Scholar
  24. Collier, Paul, and Anke Hoeffler. 2004. Greed and Grievance in Civil War. Oxford Economic Papers 56: 563–C95.Google Scholar
  25. Devlin, Robert, and Graciella Moguillansky. 2012. What’s ‘New’ in the New Industrial Policy of Latin America, World Bank Policy Research Paper 6191, No. 38. Washington, DC: World Bank Publications.Google Scholar
  26. Di John, Jonathan. 2011. Is There Really a Resource Curse? A Critical Survey of Theory and Evidence. Global Governance 17 (2): 167–184.Google Scholar
  27. Easterly, William, and Ross Levine. 2003. Tropics, Germs and Crops: How Endowments Influence Economic Development. Journal of Monetary Economics 50: 3–C39.Google Scholar
  28. Economic Commission for Latin America and the Caribbean (ECLAC). 2013. Natural Resources: Status and Trends Towards a Regional Development Agenda in Latin America and the Caribbean. Santiago de Chile: ECLAC Publications.Google Scholar
  29. Economic Commission for Latin America and the Caribbean. 2016. Foreign Direct Investment in Latin America and the Caribbean. Santiago de Chile: ECLAC Publication.Google Scholar
  30. Gallagher, Kevin. 2016. The China Triangle: Latin America’s China Boom and the Fate of the Washington Consensus. New York: Oxford University Press.Google Scholar
  31. Gallagher, Kevin, and Roberto Porzecanski. 2010. The Dragon in the Room: China and the Future of Latin American Industrialization. Stanford: Stanford University Press.Google Scholar
  32. Gallagher, Kevin, Armos Irwin, and Katherin Koleski. 2012. The New Banks in Town: Chinese Finance in Latin America, Inter-American Dialogue Report. Available online at http://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=662CD3079064A639AABE147F67D98596?doi=10.1.1.357.3572&rep=rep1&type=pdf.
  33. Haslam, Paul, and Pablo Heidrich, eds. 2016. The Political Economy of Resources and Development: From Neoliberalism to Resource Nationalism. London: Routledge.Google Scholar
  34. Huang, Yiping. 2016. Understanding China’s Belt and Road Initiative: Motivation, Framework and Assessment. China Economic Review 40: 314–321.Google Scholar
  35. Hung, Ho-Fung. 2013. China: Saviour or Challenger of the Dollar Hegemony? Development and Change 44 (6): 1341–1361.Google Scholar
  36. ———. 2008. Rise of China and the Global Overaccumulation Crisis. Review of International Political Economy 15 (2): 149–179.Google Scholar
  37. Jenkins, Rhys. 2016. Is Chinese Competition De-industrializing Brazil? Latin American Perspectives 42 (6): 42–63.Google Scholar
  38. Jenkins, Rhys, and Enrique Dussel Peters, eds. 2009. China and Latin America: Economic Relations in the Twenty-First Century. Bonn: German Development Institute.Google Scholar
  39. Jenkins, Rhys, Enrique Dussel Peters, and Mauricio Mesquita Moreira. 2008. The Impact of China on Latin America and the Caribbean. World Development 36 (2): 235–253.Google Scholar
  40. Jones Luong, Pauline, and Erika Weinthal. 2010. Oil Is Not a Curse: Ownership Structure and Institutions in Soviet Successor States. Cambridge: Cambridge University Press.Google Scholar
  41. Kurtz, Marcus. 2013. Latin American State-Building in Comparative Perspective: Social Foundations of Institutional Order. Cambridge: Cambridge University Press.Google Scholar
  42. Lima de Oliveira, Renato. 2016. Resource-led Industrial Development in the Oil and Gas Supply Chain: The Case of Brazil. MIT-IPC Working Paper 16–002. Available at http://ipc.mit.edu/sites/default/files/ documents/16-002.pdf. Accessed 28 Aug 2017.
  43. Menaldo, Victor. 2015. The New Political Economy of Natural Resources in Latin America. Latin American Politics and Society 57 (1): 163–173.Google Scholar
  44. ———. 2016. The Institutions Curse: Natural Resources, Politics, and Development. Cambridge: Cambridge University Press.Google Scholar
  45. Moore, Jason. 2010a. ‘Amsterdam Is Standing on Norway’. Part I: The Alchemy of Capital, Empire, and Nature in the Diaspora of Silver, 1545–1648. Journal of Agrarian Change 10 (1): 33–68.Google Scholar
  46. ———. 2010b. ‘Amsterdam is Standing on Norway’. Part II: The Global North Atlantic in the Ecological Revolution of the Long Seventeenth Century. Journal of Agrarian Change 10 (2): 188–227.Google Scholar
  47. Nem Singh, Jewellord. 2010. Reconstituting the Neostructuralist State: The Political Economy of Continuity and Change in Chilean Mining Policy. Third World Quarterly 31 (8): 1–C20.Google Scholar
  48. ———. 2014. Towards Post-Neoliberal Resource Politics? The International Political Economy of Oil and Copper in Brazil and Chile. New Political Economy 19 (3): 329–C358.Google Scholar
  49. ———. 2015. Investing Fossil Fuel-based Revenues into Renewable Energy. Working Paper Commissioned for the UNDP and Climate Parliament, Brussels.Google Scholar
  50. Nem Singh, Jewellord, and France Bourgouin. 2013. Introduction: Resource Governance at a Time of Plenty. In Resource Governance and Developmental States in the Global South: Critical International Political Economy Perspectives, ed. Jewellord Nem Singh and France Bourgouin, 1–C18. Basingstoke: Palgrave Macmillan.Google Scholar
  51. Nem Singh, Jewellord, and Geoffrey Chen. 2018. State-Owned Enterprises and the Political Economy of State-State Relations in the Developing World. Third World Quarterly 39 (6): 1077–1097.Google Scholar
  52. Nem Singh, Jewellord, and Jesse Ovadia. 2018. The Theory and Practice of Building Developmental States in the Global South. Third World Quarterly 39 (6): 1033–1055.Google Scholar
  53. Nolan, Peter. 2014. Chinese Firms, Global Firms: Industrial Policy in the Age of Globalization. Abingdon, Oxon: Routledge.Google Scholar
  54. Orihuela, José Carlos. 2013. How Do “Mineral-States” Learn? Path-Dependence, Networks, and Policy Change in the Development of Economic Institutions. World Development 43: 138–148.Google Scholar
  55. Petras, J.F., and H. Veltmeyer. 2014. Extractive Imperialism in the Americas: Capitalism’s New Frontier. Leiden: Brill.Google Scholar
  56. Priest, Tyler. 2016. Petrobras in the History of Offshore Oil. In New Order and Progress: Development and Democracy in Brazil, ed. Ben Ross Schneider, 53–77. Oxford: Oxford University Press.Google Scholar
  57. Ramírez-Cendrero, Juan, and María Paz. 2017. Oil Fiscal Regimes and National Oil Companies: A Comparison Between Pemex and Petrobras. Energy Policy 101: 473–483.Google Scholar
  58. Ray, Rebecca, and Kevin Gallagher. 2017. China-Latin America Economic Bulletin. Discussion Paper 2015–9. Global https://open.bu.edu/bitstream/handle/2144/27508/Economic-Bulletin.16-17-Bulletin.Draft_.pdf?sequence=1&isAllowed=y
  59. Sachs, Jeffrey, and Andrew Warner. 1999. The Big Push, Natural Resource Booms and Growth. Journal of Development Economics 59 (1): 43–76.Google Scholar
  60. Victor, David, David Hults, and Mark Thurber, eds. 2011. Oil and Governance: State-Owned Enterprises and the World Energy Supply. Cambridge: Cambridge University Press.Google Scholar
  61. Wallerstein, Immanuel. 1974. The Modern World System I. New York: Academic Press.Google Scholar
  62. Wilson, Jeffrey. 2015. Understanding Resource Nationalism: Economic Dynamics and Political Institutions. Contemporary Politics 21 (4): 399–416.Google Scholar
  63. Wise, Carol. 2018. China’s Spin on Governing Its Relationship with South America. In Handbook of South American Governance, ed. Pia Riggirozzi and Christopher Wylde. London: Routledge Chapter 16.Google Scholar
  64. Wright, Gavin, and Jesse Czelusta. 2007. Resource-Based Growth Past and Present. In Neither Curse nor Destiny: Natural Resources and Development, ed. Daniel Lederman and William Maloney, 183–212. Stanford: Stanford University Press and World Bank Publication.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Jewellord Nem Singh
    • 1
  1. 1.Leiden UniversityLeidenThe Netherlands

Personalised recommendations