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Continuities and Change in IPE at the Start of the Twenty-first Century Read chapter Read first chapter

2019 | OriginalPaper | Chapter

33. Natural Resources

Author : Jewellord Nem Singh

Published in: The Palgrave Handbook of Contemporary International Political Economy

Publisher: Palgrave Macmillan UK

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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.

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Footnotes
1
If we exclude the Chinese deals, capital raised in mining actually declined by 16% in 2016—an outcome of the grinding recovery in major markets of Europe, North America, and Australia.
 
2
It should be noted that all loans and credits are given at commercial rates, and therefore, China’s policy banks behave in a fairly similar manner to other development finance institutions, such as the World Bank’s International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank, and other export-import banks (Brautigam 2009; Gallagher 2016; Gallagher et al. 2012).
 
3
Furthermore, China likewise has an immense competitive advantage over how to price its manufacturing products and its economies of scale, which contributes to the inability of Latin American exports to compete with China. Thanks to Alvin Camba for pointing this out.
 
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Metadata
Title
Natural Resources
Author
Jewellord Nem Singh
Copyright Year
2019
Book
The Palgrave Handbook of Contemporary International Political Economy

Print ISBN: 978-1-137-45442-3

Electronic ISBN: 978-1-137-45443-0

Copyright Year: 2019

DOI
https://doi.org/10.1057/978-1-137-45443-0_33