Abstract
The extractive sector plays a significant role in the global economic landscape. The sector contributes substantially to countries’ gross domestic products (GDPs) and has the potential to improve the economic outcomes of the geographic spaces in which they are hosted. The extractive sector comprises a country’s natural capital assets, which Barbier (2002) distinguished from physical and human capital resources, which can contribute both positively and negatively to economic opportunities. Despite their functional value, an explicit role for natural resources must be articulated clearly in the context of sustainable economic development, given that the natural resource base is intricately linked to the integrity of the physical environment. Importantly, the environment directly affects human welfare in the short and the long term. Wise and Stylla (2007) identify the economic value of the extractive sector via effective and equitable distribution of revenue flows that can be used to finance as well as improve quality and access to public goods such as education, training, health care and infrastructure. Notwithstanding this, Oppenheimer1 (1999, cited in Gordon and Pestre, 2002: 4) cautions that, Natural resources can be a source of great good… or dreadful ill. The key element is not the resource itself, but how it is exploited.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Ades, A. and R. Di Tella. 1999. ‘Rents, Competition and Corruption’. The American Economic Review 89, no. 4, pp. 982–93.
Andrés, Rodriguez-Pose. 2001. The Role of the ILO in Implementing Local Economic Development Strategies in a Globalized World, Policy Paper, Cooperative Branch, ILO, Geneva.
Auty, R. M. 1993. Sustaining Development in Mineral Economies. London: Routledge.
Auty, R.M. 2001. A Growth Collapse with High Rent Point Resources: Saudi Arabia, in: Auty, R.M. (ed.), Resource Abundance and Economic Development, Oxford University Press, 193–207.
Barbier, Edward B. 2002, The Role of Natural Resources in Economic Development, Australian Economic Papers 42 (2). 253–27.
Bartick, J. T. 2003. ‘Local Economic Development Policies’. Upjohn Institute Working Paper No. 03-91. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.
Beyer, A., Peterson, C. and Sharma, A. 2003. The Role of Participation and Partnerships in Local Economic Development in Africa. New York: Robert Wagner Graduate School of Public Service, New York University.
Billings, Dwight B. 1990. ‘Religion as Opposition: A Gramscian Analysis’. American Journal of Sociology 96, no. 1, pp. 1–31.
Blakely, E. 1994. Planning Local Economic Development. 2nd Edition. Thousand Oaks, CA: Sage
Corden, W.M. and Neary, J.P. 1982 ‘Booming Sector and de-Industrialization in a Small Open Economy’ Economic Journal, 92: 825–848.
Douglas-Hall, Ayana and Michelle Chau. 2007. ‘Parents’ Low Education Leads to Low Income, Despite Full-Time Employment’. New York: National Center for Children in Poverty. http://www.nccp.org/publications/pub_786.html.
Environmental Rights Action/Friends of the Earth, Nigeria. 2008. ‘Host Communities Network’. Environmental Impact newsletter, no. 3. Benin City, Nigeria: Int’l Secretariat. http://www.eraction.org/publications/impact4.pdf.
Flint, C. G. and A. E. Luloff. 2005. ‘Natural Resources-Based Communities, Risk and Disaster: An Intersection of Theories’. Society and Natural Resources 18, pp. 399–412.
Frankel, J. (2011). ‘A Solution to Fiscal Procyclicality: The Structural Budget Institutions Pioneered by Chile’, forthcoming, in Luis Felipe Céspedes, JordiGalí, and Yan Carrière-Swallow (Eds)Fiscal Policy & Macroeconomic Performance; also NBER working paper N.16945.
Frankel, Jeffrey A. 2010. The Natural Resource Curse: A Survey. NBER Working Paper 15386. National Bureau of Economic Research, Cambridge, MA.
Freudenburg, W. R. 1992. ‘Addictive Economies: Extractive Industries and Vulnerable Localities in a Changing World Economy’. Rural Social 57, no. 3, pp. 305–32.
Gaventa, J. 1980. Power and Powerlessness: Quiescence and Rebellion in an Appalachian Valley. Urbana: University of Illinois Press.
Geary, Caitlin. 2011. ‘Sustainable Connections: Linking Sustainability and Economic Development Strategies’. City Practice Brief. Washington, D.C.: National League of Cities. http://www.nlc.org/File%20.Library/Find%20City%20Solutions/Research%20Innovation/Sustainability/sustainable-connectionslinking-sustainability-and-economic-development-strategies-cpb-jun11.pdf.
Godio, Marie Joyce. 2012. ‘Transforming Extractive Industries in the Philippines: Locating Spaces for People’s Participation in Mining Policies’. Geneva: UNRISD. http://www.unrisd.org/80256B3C005BE6B5/%28httpNews%29/E60DD0711B8264FDC1257A0F004BB3D1?OpenDocument.
Goodland, Robert. 2006. How to Achieve Poverty Reduction and Sustainable Development. Sourcebook: Policy Options for the World Bank Group in Extractive Industries. Independent Extractive Industries Review for International Finance Corporation and the World Bank Group.
Gordon, K. and F. Pestre. 2002. Moving Toward Healthier Governance In Host Countries—The Contribution of Extractive Industries. Foreign Direct Investment and the Environment, Paris, OECD.
Gylfason, T. 2000. ‘Natural Resources, Education, and Economic Development’. European Economic Review 45: 847–59.
Heilbrun, J. 2003. Baumol’s Cost Disease. A Handbook of Cultural Economics. Cheltenham, UK: Edward Elgar.
Humphrey, C. R., G. Berardi, M. S. Carroll, S. Fairfax, L. Fortmann, C. Geisler, T. G. Johnson, J. Kusel, R. G. Lee, S. Macinko, N. L. Peluso, M. D. Schulman and P. C. West. 1993. ‘Theories in the Study of Natural-Resource Dependent Communities and Persistent Rural Poverty in the United States’. In G. Summers(ed.), Persistent Poverty in Rural America, pp. 136–72. Boulder, CO: Westview Press.
Jacks, D.S., O’Rourke, K.H. and Williamson, J.G. 2009. Commodity Price Volatility and World Market Integration Since 1700. In National Bureau of Economic Research Working Paper Series. 2009. No. 14748.
Kadir, A.M. and Sookram, S. 2007. Poverty and Household Welfare in Trinidad and Tobago: Evidence from the Survey of Living Conditions (SLC) 2005. SALISES Publications, Working Papers.
Krannich, R. S. and A.E. Luloff. 1991. ‘Problems of Resource Dependency in U.S. Rural Communities’, In A. W. Gilg, D. Briggs, R. Dilley, O. Fyruseth, and G. McDonald (Eds), Progress in Rural Policy and Planning, Volume 1. London: Belhaven Press, pp. 5–18.
Latimer, Melissa and Carson Mencken. 2001. ‘Socioeconomic Trends in Mining Dependent Counties in Appalachia’. West Virginia University, Regional Research Institute, Morgantown, WV.
Leveille, E. (2009) ‘Natural Resources: unavoidable curse or manageable asset?’ Journal of Politics & International Affairs, 108–125.
Mehlum, H., K. Moene and R. Torvik. 2006. ‘Institutions and the Resource Curse’. The Economic Journal 116, no. 508, pp. 1–20.
Mensah, James Kwame, Kwame Ameyaw Domfeh, Albert Ahenkan, and Justice Nyigmah Bawole. 2013. ‘Policy and Institutional Perspectives on Local Economic Development in Africa: The Ghananian Perspective’. Journal of African Studies and Development 5, no. 7, pp. 163–70.
Nankani, Gobind. 2009. Natural Resources Need Not be a Curse’ in the Global Development Network Newsletter, no. VI.
Oil & Gas IQ. 2010. ‘Norway: A Local Content Success Story’. http://www.oilandgasiq.com/article.cfm?externalid=2137.
Paltseva, Elena and Jesper Roine. 2011. ‘Resource Curse: What Do We Know About It?’ Policy Brief Series. Forum for Research on Eastern Europe and Emerging Economies. https://freepolicybriefs.files.wordpress.com/2011/11/free_policy_brief_paltseva_roine.pdf
Parker, A. R., J. Van Alstine, M. Gitsham and R. Dakin. 2008. Managing Risk and Maintaining License to Operate: Participatory Planning and Monitoring in the Extractive Industries. Washington D.C.: The World Bank Group.
Peek, P., Fenard, J., Gantes, P. and Theiler, C. (2008a). Skills Shortages in the Global Oil and Gas Industry: How to Close the Gap. Part I. Centre De Recherches Entreprises et Societes. CRES.
Rodríguez-Pose, A. 2001. The Role of the ILO in Implementing Local Economic Development Strategies in a Globalized World. London: London School of Economics.
Rodriguez-Pose, A. and Tijmstra, S. (2009). On the Emergence and Significance of Local Economic Development Strategies. CAF Working Paper, CAF. 7.
Rogerson, C. M. 2009. ‘Strategic Review of Local Economic Development in South Africa’. Final Report Submitted to Minister Sicelo Shiceka, (dplg), Commissioned by the dplg and AHI, Supported by the Strengthening Local Governance Programme of GTZ.
Sachs, J. D., and A. M. Warner. 1995. ‘Natural Resource Abundance and Economic Growth’. NBER Working Paper No. 5398.
Sachs, J. D., and A. M. Warner. 1995a/1997. ‘Natural Resource Abundance and Economic Growth’. Working Paper 5398. Cambridge, MA: National Bureau of Economic Research and Harvard University.
Sigma, Claudine, and Leonardo Garcia. 2012. Extractive Industries: Optimizing Value Retention in Host Countries. UNCTAD/SUC/2012/1. Geneva: UNCTAD.
Sparviero S., Preston P. (2010), ‘Creatività and the Positive Reading of Baumol Cost Disease.’ The Service Industries Journal 30, 1903–1917.
Stevens, P. (2003). Resource Impact: Curse or Blessing?—A Literature Survey. Journal of Energy Literature Survey Article, Volume IX Number 1.
Swinburn, Gwen, Soraya Goga, and Fergus Murphy. 2006. ‘Local Economic Development: A Primer Developing and Implementing Local Economic Development Strategies and Action Plans’. Washington, D.C.: World Bank.
UNDP (United Nations Development Programme). 2012. ‘Strategy Note. UNDP’s Strategy for Supporting Sustainable and Equitable Management of the Extractive Sector for Human Development’. UNDP Extractive Industries. New York: UNDP.
UN-Habitat. 2013. ‘Local Economic Development in Practice: A Toolkit for LED Practitioners’. Nairobi, Kenya: United Nations Human Settlements Programme (UN-Habitat).
Van Empel, C. 2007. LED Story Ghana: Rooting Public-Private Dialogue. Geneva: ILO.
Vázquez-Barquero, A. 1999. Development, Networking and Innovation: Lessons on Development. Pirámide, Madrid.
Verner, Dorte 2004. ‘Education and Its Poverty-Reducing Effects: The Case of Paraíba, Brazil’. World Bank Policy Research Working Paper 3321. Washington, D.C.: World Bank.
Wise, Holly, and Sokol Shtylla. 2007b. ‘The Role of the Extractive Sector in Expanding Economic Opportunity’. Corporate Social Responsibility Initiative Report No. 18 Harvard University: Economic Opportunity Series.
Young, Alwyn. 2014. ‘Structural Transformation, the Mismeasurement of Productivity Growth, and the Cost Disease of Services’. American Economic Review 104, no. 11.
Editor information
Editors and Affiliations
Copyright information
© 2016 Roger Hosein, Rebecca Gookool and Akeeta Ali
About this chapter
Cite this chapter
Hosein, R., Gookool, R., Ali, A. (2016). The Imperative of a Local Economic Development Approach in the Context of the Dutch Disease. In: Schoburgh, E.D., Martin, J., Gatchair, S. (eds) Developmental Local Governance. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137558367_9
Download citation
DOI: https://doi.org/10.1057/9781137558367_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-55843-8
Online ISBN: 978-1-137-55836-7
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)