South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source
South Asia (IDA & IBRD) | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.1668602
1971 0.17433422
1972 0.17118161
1973 0.1532783
1974 0.18603417
1975 0.23815856
1976 0.36528917
1977 0.32820931
1978 0.21339403
1979 0.24067163
1980 0.2432833
1981 0.2257531
1982 0.2746686
1983 0.20892843
1984 0.20130702
1985 0.19829015
1986 0.19186356
1987 0.154264
1988 0.20289202
1989 0.25331422
1990 0.24166355
1991 0.18988119
1992 0.24429821
1993 0.2057805
1994 0.16014973
1995 0.16669828
1996 0.17633613
1997 0.16958264
1998 0.27530963
1999 0.20601048
2000 0.19028738
2001 0.20699963
2002 0.2026223
2003 0.18068711
2004 0.23186134
2005 0.64425712
2006 0.7932503
2007 1.35535586
2008 1.76084061
2009 0.74276256
2010 1.22574348
2011 1.14029162
2012 0.60773785
2013 0.6986253
2014 0.42097242
2015 0.22181568
2016 0.27366573
2017 0.35663068
2018 0.33428849
2019 0.50699073
2020 0.52858444
2021 1.02576315
2022

South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source