Social policy and state revenues in mineral-rich contexts

Hinojosa-Valencia, Leonith; Bebbington, Anthony and Barrientos, Armando (2012). Social policy and state revenues in mineral-rich contexts. In: Hujo, Katja ed. Mineral rents and the financing of social policy. Opportunities and challenges. Social Policy in a Development Context. Basingstoke: Palgrave Macmillan, pp. 91–121.

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Abstract

This paper challenges the determinism of the resource curse hypothesis. It suggests that concerns about perverse effects of mineral rents on social development can be addressed by assessing the implications of growth and development strategies based on the expansion of mineral sectors for social welfare, and the extent to which the exploitation of mineral resources has produced the expected effects on government revenue and expenditure. This approach narrows the field of study to MDCs only, and aims to reveal the extent to which the level of mineral export dependence influences social policy making. With that purpose, this paper provides a cross-country analysis of the linkages between state revenue and social policy in contexts of mineral wealth, and presents an approach to identify those linkages and the effects of a mineral-led development strategy on welfare regimes.

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