Do mineral riches matter at all for economic development? No, otherwise mineral deficient countries like #Singapore would be begging nations.
On the other hand, many mineral-endowed countries seem cursed to a perpetual state of underdevelopment or continually playing catch-up. Mineral riches also seemingly create lazy thinking, a thinking that fails to take cognisance of global market conditions and responding timely to changes coming over the horizon. It also engenders a thinking that depends solely on a fortuitous piece of natural luck that put a nation on top of mineral abundance.
Economic development is about making the smart choices that will propel the nation along a sustainable growth trajectory. It is also about harnessing comparative advantages, and where none seem to exist, smartly 'creating' these.
Doubtless, mineral endowments offer a comparative advantage in a world that craves and depends on these. But this comparative advantage has to be exploited with smart strategies that are adaptable to changing global conditions. For if there is one lesson from modern economic history, it is that global conditions are always changing. This comparative advantage may not always be the same through the ages, so it is important to discern when it is time to change direction and harness or create new advantages. And mineral endowments are not forever...
Crying over the spilt milk of changing global conditions that mean your minerals may no longer be as valuable as they were yesterday is a sign of lack of forward planning, as are empty barns in times of drought.
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