Africa Eastern and Southern | Mineral rents (% of GDP)
Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source
Africa Eastern and Southern | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 2.81638801
1971 1.67064742
1972 1.50614227
1973 2.57804882
1974 3.05593953
1975 1.12914398
1976 1.34142305
1977 1.18370081
1978 0.70604277
1979 3.11998625
1980 6.81929148
1981 3.66679362
1982 2.56469336
1983 3.20447141
1984 0.87811491
1985 2.3505665
1986 2.04161685
1987 2.39341764
1988 3.13675792
1989 2.47097463
1990 1.52951326
1991 1.34357293
1992 1.1307257
1993 1.23528246
1994 1.49251671
1995 0.55426637
1996 0.9250344
1997 0.58277451
1998 0.41671599
1999 0.30640117
2000 0.48307249
2001 0.51030936
2002 0.61161013
2003 0.23262262
2004 0.40916387
2005 0.70702983
2006 1.33222692
2007 1.53163848
2008 1.57982243
2009 1.00027347
2010 1.73744178
2011 2.03979771
2012 1.61457532
2013 1.56074653
2014 1.11837718
2015 0.55455455
2016 0.75720608
2017 0.95922682
2018 0.87868488
2019 0.99538005
2020 1.26706154
2021 4.20539228
2022
Africa Eastern and Southern | Mineral rents (% of GDP)
Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source