2 ms·
See "The Resource Curse" in Economics which predicts that when mining and other extractive industries are important to a countries GDP it will heavily predispos
by ZeroGravitas 3y ago
See "The Resource Curse" in Economics which predicts that when mining and other extractive industries are important to a countries GDP it will heavily predispose a country to "corruption and underinvestment in infrastructure".
https://www.sciencedirect.com/science/article/abs/pii/S0301420713000755 https://www.sciencedirect.com/science/article/abs/pii/S03014...
> It is found that South Africa has experienced many of the symptoms outlined in the resource curse literature including relatively slow GDP growth, gross inequalities, entrenched poverty and the creation of a rentier state. Overall, it is concluded that South Africa has failed to benefit from natural resource wealth and can be classified as a resource cursed state. Not only has mineral wealth failed to benefit much of South Africa's population, sections of society have actually been harmed through the process of mineral extraction