Least developed countries: UN classification | 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
Least developed countries: UN classification
Records
63
Source
Least developed countries: UN classification | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 2.83264107
1971 1.70089275
1972 1.73401714
1973 3.31378293
1974 3.04346505
1975 0.9686452
1976 1.34676343
1977 1.28053754
1978 0.58497959
1979 1.07239973
1980 0.99919086
1981 0.53498227
1982 0.36049034
1983 0.46364564
1984 0.72060614
1985 0.60806343
1986 0.72905968
1987 0.83070859
1988 1.47175571
1989 1.51524404
1990 0.94957324
1991 0.29466045
1992 0.32783342
1993 0.23427725
1994 0.2293504
1995 0.14615499
1996 0.17124199
1997 0.15443323
1998 0.15037415
1999 0.1328471
2000 0.15292182
2001 0.19554081
2002 0.21908622
2003 0.16829613
2004 0.29505603
2005 0.50177666
2006 1.10649963
2007 1.0955505
2008 0.96267431
2009 0.84754354
2010 1.31373799
2011 1.70955365
2012 1.46418442
2013 1.26411822
2014 0.93166549
2015 0.57842106
2016 0.67814394
2017 0.91419239
2018 0.95156999
2019 0.59658879
2020 0.82890424
2021 3.08079705
2022

Least developed countries: UN classification | 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
Least developed countries: UN classification
Records
63
Source