Plundered planet - Natural Resources and Land Use

Collier talks about “resource curses.” How could mismanagement of land and natural resources affect economic development?

Mismanagement of land and natural resources can significantly hamper economic development because it weakens the very foundations on which productive activity relies. When land is over-exploited—through deforestation, soil degradation or poorly regulated extraction—its long-term productive capacity declines, reducing agricultural yields, increasing vulnerability to shocks, and raising the cost of restoring ecosystems. At the same time, weak governance around resource allocation often creates rent-seeking behaviour, corruption, and unequal land access, which distort markets and deter investment. In many developing economies, this leads to an over-reliance on short-term resource revenues rather than diversified, sustainable growth. The result is a cycle where environmental degradation reinforces economic fragility: degraded land reduces incomes, governments become more dependent on unsustainable exploitation, and social tensions increase as communities compete over shrinking resources. Effective resource management, therefore, is not just an environmental issue but a prerequisite for stable, inclusive economic development.

“Mismanagement of land and natural resources can create a ‘resource curse’ by generating short-term rents that discourage diversification, fuel corruption, and concentrate wealth in the hands of a few. Economies may become overly reliant on resource extraction, leaving them vulnerable to price shocks and neglecting investment in human capital, infrastructure, and innovation. Effective resource management — including transparent governance, reinvestment of rents, and sustainable land use — is therefore crucial for turning natural endowments into long-term, inclusive economic development.”

Absolutely! Land and natural resources can be used for sustainable urban development, but it requires careful planning and management to balance growth with environmental protection. Let’s break it down clearly:

1.

Sustainable Land Use

• Compact Cities: Using land efficiently by building vertically (high-rise buildings) instead of spreading outwards reduces urban sprawl.

• Mixed-use Development: Combining residential, commercial, and recreational areas minimizes travel distances, reducing energy use.

• Green Spaces: Parks, urban forests, and green roofs improve air quality, manage stormwater, and enhance residents’ well-being.

2.

Efficient Use of Natural Resources

• Water Management: Using rainwater harvesting, recycling wastewater, and protecting watersheds ensures a sustainable water supply.

• Energy Efficiency: Incorporating renewable energy (solar, wind) and energy-efficient buildings reduces the consumption of fossil fuels.

• Materials: Using locally sourced, recycled, or renewable construction materials reduces the environmental impact.

3.

Protecting Ecosystems

• Avoid building in ecologically sensitive areas such as wetlands, forests, or floodplains.

• Restore degraded land where possible and incorporate urban biodiversity initiatives.

4.

Smart Urban Planning

• Public Transport: Reduces reliance on private vehicles, decreasing pollution and land used for parking.

• Circular Economy: Encouraging waste recycling and resource recovery in cities minimizes the depletion of natural resources.

✅ Key Idea

Sustainable urban development doesn’t mean avoiding land and resources, it means using them wisely—meeting present urban needs while preserving the environment for future generations.

If you want, I can make a diagram showing how land and natural resources can be integrated into a sustainable city, which makes this much easier to visualize. Do you want me to do that?

How to avoid holding of land

To reduce land speculation—where people hold onto land without using it, waiting for prices to rise—you need policies and strategies that encourage productive use and discourage hoarding. Here’s a detailed breakdown:

1.

Tax-Based Measures

• Land Value Tax: Charge owners based on the value of land (not buildings). This encourages selling or developing idle land instead of holding it for speculation.

• Vacancy or Idle Land Tax: Extra tax on undeveloped or unused land in urban areas.

2.

Regulation and Planning

• Development Deadlines: Require landowners to develop land within a certain period or face penalties.

• Zoning Laws: Assign land for specific uses (residential, commercial, industrial) to reduce speculative holding.

• Density Bonuses or Incentives: Encourage higher-density development in underused areas.

3.

Land Redistribution & Public Ownership

• Land Banking: Government buys land and holds it for planned development, selling it only to developers who will build within a set timeframe.

• Redistribution: Allocate underused land to individuals, small developers, or community projects that will actively use it.

4.

Market and Financial Tools

• Limiting Ownership Concentration: Restrict how much land a single person or entity can hold in high-demand areas.

• Transparency in Transactions: Public registries of land ownership can reduce speculation by making the market more visible.

5.

Incentives for Productive Use

• Subsidies or Grants: Provide financial support for development projects, urban agriculture, or affordable housing on idle land.

• Fast-Track Approvals: Give priority permits to projects that make productive use of land quickly.

✅ Key Idea

The goal is to make holding land without using it expensive or unattractive, while rewarding development and productive use. This reduces speculation and ensures land contributes to housing, infrastructure, or economic growth rather than just waiting for prices to rise.

If you want, I can make a simple flowchart showing “from speculation → policy solutions → productive use” to make it easier to visualize. This is often used in urban planning presentations. Do you want me to make it?

How to increase house building by removing regulations

What is zoning

Zoning is a core land-use planning tool through which governments regulate how different areas of land can be used, whether for housing, commercial activity, industry, or environmental protection. By setting rules on permitted uses, building heights, densities, and environmental standards, zoning helps create an orderly spatial structure that prevents harmful conflicts—such as heavy industry locating next to residential neighbourhoods. Its importance lies in how it shapes the long-term functioning of cities: effective zoning supports efficient infrastructure planning, stabilises property markets, protects sensitive ecosystems, and ensures that growth occurs in a way that aligns with social and environmental priorities. Without it, urban development becomes fragmented and inefficient, leading to congestion, higher public costs, and a poorer quality of life.

1.

Identify Restrictive Regulations

• Zoning restrictions: Limits on density (how many homes per plot), building height, or permitted uses.

• Subdivision rules: Requirements for lot sizes, road widths, or infrastructure that slow down development.

• Permit approvals: Long, costly, or complex building permit processes.

2.

Simplify or Remove Barriers

• Allow higher density: Change zoning to allow apartment blocks or townhouses instead of only single-family homes.

• Relax minimum lot sizes: Smaller lots let more houses fit in the same area.

• Streamline approvals: Fast-track building permits for residential projects.

3.

Reduce Costs for Developers

• Lower development fees: Reduce charges for permits, impact fees, or infrastructure contributions.

• Flexible building standards: Allow alternative construction methods (prefabricated homes, modular units) without compromising safety.

4.

Encourage Underused Land Development

• Remove restrictions on vacant or underused land in urban areas.

• Offer incentives to build on idle plots, e.g., tax reductions or subsidies.

5.

Complementary Measures

• Infrastructure readiness: Ensure roads, water, electricity, and sanitation are in place for new housing.

• Affordable housing incentives: Offer density bonuses or tax incentives for developers who include affordable homes.

Can land or mineral wealth be used to promote sustainable urban or rural development? How?

Land and mineral wealth can support sustainable urban and rural development when the revenues they generate are managed transparently and reinvested strategically. In resource-rich regions, mining royalties or land-value gains can fund infrastructure such as transport, renewable energy, and affordable housing, helping cities grow in a planned and equitable way. In rural areas, revenues can support agricultural diversification, irrigation systems, and ecosystem restoration, reducing dependence on extractive activities. At the same time, effective land-use planning—such as zoning, conservation areas, and community land rights—ensures that extraction does not degrade ecosystems or displace vulnerable groups. Countries that channel resource wealth into human capital, public services, and long-term funds avoid the “resource curse” and create stable foundations for inclusive growth. Ultimately, land and mineral wealth promote sustainable development only when extraction is balanced with environmental protection and when economic gains are reinvested to benefit both present and future generations.

How might resource exploitation (like mining or logging) create trade-offs between growth and environmental sustainability?

“Resource exploitation such as mining or logging can drive short-term economic growth by generating income, employment, and investment opportunities. However, it often comes at the cost of environmental degradation, loss of biodiversity, and long-term health and social impacts, creating a trade-off between immediate prosperity and sustainability. The challenge for policymakers is to balance these competing goals through regulation, sustainable practices, and reinvestment in human and natural capital so that growth does not undermine the ecological foundations needed for long-term development.”

Could property rights reform help countries avoid the “plunder” of land and natural assets?

“Property rights reform can help countries avoid the ‘plunder’ of land and natural assets by clarifying ownership, reducing disputes, and creating incentives for responsible use. Secure and transferable rights encourage investment, sustainable management, and long-term planning, while weak or unclear rights often lead to over-exploitation, corruption, and short-term extraction. Combined with transparent governance and enforcement, property rights are therefore a crucial tool for turning natural resources into a foundation for inclusive and sustainable development.”