Poverty, Inequality, and the Local Natural Resource Curse

The extent to which local communities benefit from commodity booms has been subject to wide but inconclusive investigations. This paper draws from a new district-level database to investigate the local impact on socioeconomic outcomes of mining act...

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Bibliographic Details
Main Authors:	Loayza, Norman, Mier y Teran, Alfredo, Rigolini, Jamele
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ANDEAN REGION BENCHMARK CAPACITY BUILDING CAPACITY BUILDING EFFORTS CARIBBEAN REGION CENTRAL GOVERNMENT COEFFICIENTS COMMUNITIES CONFLICT CONSTITUTIONAL REFORM CROWDING OUT DEBT DECENTRALIZATION DESCRIPTION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRICT DISTRICT GOVERNMENTS DISTRICT LEVEL DISTRICT-LEVEL DISTRICTS ECONOMIC GROWTH ECONOMIC OUTCOMES EXPENDITURE EXPORTS EXTREME POVERTY EXTREME POVERTY LINE FISCAL DISCIPLINE FISCAL NEUTRALITY FOOD NEEDS FUTURE RESEARCH GDP GINI COEFFICIENT HIGHER INEQUALITY HOUSEHOLD CONSUMPTION HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLDS HOUSEHOLDS WITH ELECTRICITY HOUSING HUMAN CAPITAL ILLITERACY IMPACT ON POVERTY INCOME INCOME INEQUALITY INEQUALITY LIVING STANDARDS LOCAL GOVERNMENTS LOCAL REVENUE MINING REGIONS MINISTRY OF ECONOMY MINISTRY OF ENERGY MUNICIPALITIES NATURAL RESOURCES PER CAPITA EXPENDITURES PER CAPITA INCOME POLICY MAKERS POOR POOR DISTRICTS POVERTY ALLEVIATION POVERTY HEADCOUNT INDEXES POVERTY LINE POVERTY MAP POVERTY RATE POVERTY RATES POVERTY REDUCTION PROVINCE PROVINCES PROVINCIAL CAPITAL PROVINCIAL CAPITALS PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC GOOD REVENUE SHARING RURAL RURAL POPULATION SOCIOECONOMIC INDICATORS SPATIAL ANALYSIS SUB-NATIONAL SUB-NATIONAL GOVERNMENTS SUBNATIONAL SUBNATIONAL GOVERNMENTS TAX TAX REVENUES URBAN POPULATION
Online Access:	http://documents.worldbank.org/curated/en/2013/02/17365153/poverty-inequality-local-natural-resource-curse http://hdl.handle.net/10986/13169

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Summary:	The extent to which local communities benefit from commodity booms has been subject to wide but inconclusive investigations. This paper draws from a new district-level database to investigate the local impact on socioeconomic outcomes of mining activity in Peru, which grew almost twentyfold in the last two decades. The authors find evidence that producing districts have better average living standards than otherwise similar districts: larger household consumption, lower poverty rate, and higher literacy. However, the positive impacts from mining decrease significantly with administrative and geographic distance from the mine, while district-level consumption inequality increases in all districts belonging to a producing province. The inequalizing impact of mining activity, both across and within districts, may explain part of the current social discontent with mining activities in the country, even despite its enormous revenues.

Poverty, Inequality, and the Local Natural Resource Curse

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