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New book lays out path for green growth from extractive industry in low-income countries

A new open-access book titled Resources Matter: Ending Poverty while Protecting Nature, by Tony Addison and Alan Roe, has been published by Oxford University Press. The book provides critical insights into the complex relationship between natural resource extraction and sustainable development.

Available to read and download from Oxford University Press and various open-access platforms, the book addresses one of the most pressing issues for the Global South: the balance between leveraging natural resources for needed economic growth and ensuring environmental sustainability. 

Resource rich countries in the Global South rely heavily on the extractive industries—such as mining and fossil fuels—for revenue. The book explores how these sectors can either contribute to or hinder economic development. While natural resources have the potential to promote high living standards and alleviate poverty, their extraction often leads to significant environmental challenges, including increased carbon emissions and the destruction of biodiversity.

Challenging the resource curse 
The authors challenge the notion of the "resource curse," which suggests that resource wealth inevitably results in negative economic outcomes. Instead, they argue that with the right policies and coordinated efforts between governments, the private sector, and civil society, natural resources can significantly benefit local communities and contribute to broader economic goals.

The book highlights the opportunities that the transition to a net-zero carbon economy presents for lower-income countries richly endowed with natural resources. By harnessing critical minerals required for renewable technologies, these nations could pursue economic diversification while addressing pressing social issues, such as poverty and energy access.

Balancing climate goals and economic growth 

The book outlines essential strategies for success, including:

• Transforming governmental attitudes towards extractive industries to embrace long-term economic planning
• Implementing comprehensive governance reforms to facilitate sustainable management of natural resources
• Encouraging corporate responsibility among multinational companies investing in resource-rich countries

With tailored recommendations for policymakers, the book advocates for a balanced approach that recognizes the dual objectives of reducing carbon emissions and enhancing economic prospects for resource-dependent nations. It also emphasizes the importance of international cooperation and financial support to help lower-income countries navigate the challenges of sustainable development.

Resources Matter makes a crucial contribution to the global conversation on economic growth, environmental stewardship, and the future of resource management in the context of climate change. The editors invite readers to engage in this vital discussion and consider the profound implications of how we manage our natural resources for generations to come.

About the Editors

Tony Addison is a Non-Resident Research Fellow at UNU-WIDER. He was formerly a professor of economics at the University of Copenhagen Development Economics Research Group (DERG) and chief economist and deputy director of UNU-WIDER. 

Alan Roe is a Non-Resident Research Fellow at UNU-WIDER and Honorary Professorial Fellow at the University of Warwick. He has worked for more than 50 years as an academic economist and as a policy advisor. 

The book is a culmination of the long-running UNU-WIDER Extractives for Development project, which is part of the institute’s programme on domestic revenue mobilization (DRM), funded by the Norwegian Agency for Development Cooperation (Norad).