Heavily indebted poor countries (HIPC) | 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
Heavily indebted poor countries (HIPC)
Records
63
Source
Heavily indebted poor countries (HIPC) | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 3.65126461
1971 2.19580015
1972 1.95107196
1973 3.6293979
1974 3.91799977
1975 1.39919268
1976 1.4749637
1977 1.4402825
1978 0.80515722
1979 1.27558195
1980 1.45294404
1981 0.78266593
1982 0.57791463
1983 0.67673229
1984 0.93414257
1985 0.81034401
1986 0.81586583
1987 0.94003914
1988 1.70615136
1989 1.87552213
1990 1.26727848
1991 0.49119711
1992 0.5420423
1993 0.48672829
1994 0.68109059
1995 0.40546623
1996 0.46953752
1997 0.38986587
1998 0.28215411
1999 0.24589024
2000 0.31286682
2001 0.3475451
2002 0.39145333
2003 0.26998101
2004 0.43234508
2005 0.70856768
2006 1.54392565
2007 1.57871432
2008 1.45745777
2009 1.30740456
2010 2.0662292
2011 2.89887323
2012 2.51054487
2013 2.00054495
2014 1.55667938
2015 0.93284556
2016 1.07822187
2017 1.44943342
2018 1.44732582
2019 0.99727598
2020 1.37463411
2021 5.08961311
2022

Heavily indebted poor countries (HIPC) | 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
Heavily indebted poor countries (HIPC)
Records
63
Source