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Extractive industries: recognizing and managing the risks in resource-dependent economies

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Listed:
  • Tony Addison
  • Alan R. Roe

Abstract

This paper analyses the risks facing resource-dependent countries. These include: (i) economic mismanagement (the 'resource curse'); (ii) political mismanagement; (iii) environmental damage (climate change and the destruction of natural capital). It distinguishes 'risk' (which can be addressed probabilistically) from 'uncertainty' (infrequent unpredictable events). Mozambique, with its large natural gas resource, provides examples of all the component risks and uncertainties.

Suggested Citation

  • Tony Addison & Alan R. Roe, 2024. "Extractive industries: recognizing and managing the risks in resource-dependent economies," WIDER Working Paper Series wp-2024-27, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2024-27
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2024-27-extractive-industries-risks-resource-dependent-economies.pdf
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    References listed on IDEAS

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    1. Steve Kayizzi-Mugerwa, 2020. "Uganda's nascent oil sector: Revenue generation, investor-stakeholder alignment, and public policy," WIDER Working Paper Series wp-2020-175, World Institute for Development Economic Research (UNU-WIDER).
    2. Panizza, Ugo & Fatás, Antonio & Ghosh, Atish R. & ,, 2019. "The Motives to Borrow," CEPR Discussion Papers 13735, C.E.P.R. Discussion Papers.
    3. Cullen S. Hendrix & Marcus Noland, 2014. "Confronting the Curse: The Economics and Geopolitics of Natural Resource Governance," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6765, January.
    4. Etienne Romsom & Kathryn McPhail, 2020. "The energy transition in Asia: The role of liquefied natural gas and implications for East African producers," WIDER Working Paper Series wp-2020-80, World Institute for Development Economic Research (UNU-WIDER).
    5. Félix Mambo & Yonesse Paris & Vincenzo Salvucci & Ricardo Santos, 2018. "Simulating the effect on households' real consumption and poverty of the increase in prices that followed the 2015-16 economic crisis in Mozambique," WIDER Working Paper Series wp-2018-61, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Africa; Extractive industries; Debt crisis; Mining; Natural gas; Oil;
    All these keywords.

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