Sub-Saharan 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
Sub-Saharan Africa (IDA & IBRD countries)
Records
63
Source
Sub-Saharan Africa (IDA & IBRD countries) | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.73000106
1971 1.14384426
1972 0.99977662
1973 1.67530853
1974 2.05540103
1975 0.83466709
1976 0.8388992
1977 0.86856179
1978 0.46825546
1979 1.76287014
1980 3.94642842
1981 1.63247129
1982 1.19708366
1983 1.77454068
1984 0.57525392
1985 1.31944957
1986 1.37184577
1987 1.62728264
1988 2.18288882
1989 1.85612595
1990 1.18018185
1991 1.06060467
1992 0.89352927
1993 0.93338847
1994 1.09941976
1995 0.37213379
1996 0.54372804
1997 0.36182445
1998 0.2610892
1999 0.27321484
2000 0.40812295
2001 0.42468828
2002 0.47715374
2003 0.19220376
2004 0.3156963
2005 0.54354332
2006 0.95472635
2007 1.12219983
2008 1.13725352
2009 0.84641146
2010 1.34460462
2011 1.64144468
2012 1.33251269
2013 1.16010791
2014 0.8391821
2015 0.48398975
2016 0.65758859
2017 0.8380872
2018 0.75013705
2019 0.75084191
2020 0.95168849
2021 3.11416638
2022

Sub-Saharan 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
Sub-Saharan Africa (IDA & IBRD countries)
Records
63
Source