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