IPIS Report: Africa's Natural Resources in a Global Context
Fatal Transactions member IPIS has published a new report titled "Africa's Natural Resources in a Global Context". The report, which concentrates on non-renewable natural resources, aims to disentangle some of the processes that explain the paradox between Africa’s natural wealth and its relatively limited level of economic development.
The report shows that the state of affairs in the resource sectors of most African countries is still to a large extent determined by external factors. Extractive industries in Africa tend to be export-oriented and contribute disappointingly little to local development.
The report is divided into six chapters. The first chapter is dedicated to definitional issues and to the discussion of a number of applications of non-renewable natural resources. The second chapter shows that despite its natural wealth, Africa only plays a marginal role in the global economy, not only in terms of production but also in terms of trade. The third chapter zooms in on Africa’s energy, metallic and non-metallic minerals. It does not only discuss Africa’s production and consumption of these minerals, but it also makes a comparison with other producers and consumers across the globe. Chapter 4 contains a description of the outstanding expansion over the last years in the commodities sector and the mechanisms that explain this exceptional growth. The chapter provides a short assessment of how the financial crisis that arose in the US suddenly harmed the world economy. It also discusses how the global crisis affects the mining sector, specifically in Africa. Chapter 5 tries to answer the question whether we are witnessing a new scramble for Africa’s natural resources. An attempt will be made to portray the actions of some of the main players in Africa at the moment, including the EU, the US, and China. The chapter offers an analysis of some of the special interest groups, their involvement in shaping policy and the influence that the aforementioned countries hold in the mineral sector. Finally, chapter 6 looks at how African governments can develop resource policies that have a positive impact on their national economies.
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