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
2.81638801 1970
1.67064742 1971
1.50614227 1972
2.57804882 1973
3.05593953 1974
1.12914398 1975
1.34142305 1976
1.18370081 1977
0.70604277 1978
3.11998625 1979
6.81929148 1980
3.66679362 1981
2.56469336 1982
3.20447141 1983
0.87811491 1984
2.3505665 1985
2.04161685 1986
2.39341764 1987
3.13675792 1988
2.47097463 1989
1.52951326 1990
1.34357293 1991
1.1307257 1992
1.23528246 1993
1.49251671 1994
0.55426637 1995
0.9250344 1996
0.58277451 1997
0.41671599 1998
0.30640117 1999
0.48307249 2000
0.51030936 2001
0.61161013 2002
0.23262262 2003
0.40916387 2004
0.70702983 2005
1.33222692 2006
1.53163848 2007
1.57982243 2008
1.00027347 2009
1.73744178 2010
2.03979771 2011
1.61457532 2012
1.56074653 2013
1.11837718 2014
0.55455455 2015
0.75720608 2016
0.95922682 2017
0.87868488 2018
0.99538005 2019
1.26706154 2020
4.20539228 2021
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