Middle East & North Africa (IDA & IBRD countries) | 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
Middle East & North Africa (IDA & IBRD countries)
Records
63
Source
Middle East & North Africa (IDA & IBRD countries) | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.09925145
1971 0.07016687
1972 0.04822881
1973 0.11292591
1974 1.11882892
1975 0.88654196
1976 0.28468139
1977 0.64102765
1978 0.12151646
1979 0.14649879
1980 0.17652197
1981 0.22348803
1982 0.15562275
1983 0.1284504
1984 0.07548656
1985 0.09817577
1986 0.04320551
1987 0.023956
1988 0.24258517
1989 0.08690918
1990 0.04224455
1991 0.02801349
1992 0.03159553
1993 0.04500404
1994 0.07643247
1995 0.09011543
1996 0.04842242
1997 0.04852431
1998 0.04920871
1999 0.03662544
2000 0.0329548
2001 0.0245361
2002 0.02521396
2003 0.02336328
2004 0.09663803
2005 0.17629566
2006 0.31777234
2007 0.47272155
2008 1.08848761
2009 0.71623387
2010 0.74944492
2011 1.08198719
2012 0.80781466
2013 0.71078626
2014 0.51181116
2015 0.36037966
2016 0.39427129
2017 0.49021711
2018 0.43384749
2019 0.19626726
2020 0.29226864
2021 0.85396501
2022

Middle East & North Africa (IDA & IBRD countries) | 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
Middle East & North Africa (IDA & IBRD countries)
Records
63
Source