IDA total | 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
IDA total
Records
63
Source
IDA total | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.28646835
1971 0.83429904
1972 0.971924
1973 1.94356686
1974 1.81496751
1975 0.73254086
1976 0.77653447
1977 0.76342184
1978 0.51436258
1979 0.7599097
1980 0.79276862
1981 0.35009294
1982 0.278577
1983 0.3954118
1984 0.48196556
1985 0.46849264
1986 0.5081424
1987 0.62243321
1988 1.06901446
1989 1.07642381
1990 0.68400204
1991 0.46766646
1992 0.51069536
1993 0.40028563
1994 0.4370011
1995 0.25784136
1996 0.21002682
1997 0.14550112
1998 0.10727927
1999 0.12803834
2000 0.16205856
2001 0.14102671
2002 0.17872612
2003 0.1507577
2004 0.24723446
2005 0.33051898
2006 0.67949338
2007 0.67799928
2008 0.6912828
2009 0.65487282
2010 1.01102643
2011 1.48367749
2012 1.21531971
2013 0.95946935
2014 0.72250446
2015 0.49733993
2016 0.63135694
2017 0.83787602
2018 0.82822752
2019 0.57380678
2020 0.74269699
2021 2.2477999
2022

IDA total | 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
IDA total
Records
63
Source