Advocates of natural resource extraction in developing countries commonly list five benefits: economic growth, employment, infrastructure, community investments, and government revenue.
Our conclusion is unambiguous: the overwhelming benefit is government revenues. Here’s a roundup of why…
One of Mozambique’s top economists, Firmino Mucavele, has warned that, despite the rapid development of the mining industry, Mozambique will go nowhere if it does not build up its agriculture. Cited by Radio Mozambique, Mucavele, who was recently distinguished by NEPAD (New Partnership for Africa’s Development) for his work on agricultural development, warned that you can’t eat minerals – minerals run out, and the resources derived from mining do not guarantee food security.
According to Mucavele, “70 to 80 per cent of the investment in mineral resources is foreign and only 20 per cent of the returns stay in Mozambique”.