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 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.”

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

“Land and mineral wealth can promote sustainable urban or rural development if managed strategically. Revenues from resources can be reinvested in infrastructure, education, and healthcare, supporting human capital and economic diversification. Transparent governance, long-term planning, and environmental safeguards are crucial to ensure that exploitation does not generate inequality, environmental degradation, or dependence on volatile markets. In this way, natural endowments can become catalysts for inclusive and resilient development rather than sources of a ‘resource curse.’”

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.”