Resource Rents, Coercion, and Local Development : Evidence from Post-Apartheid South Africa
This paper examines how the dismantling of coercive institutions associated with the end of apartheid in South Africa in 1994 affected the distribution of rents from natural resource exports. It identifies the interplay between coercive institution...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/02/25959143/resource-rents-coercion-local-development-evidence-post-apartheid-south-africa http://hdl.handle.net/10986/23892 |
| Summary: | This paper examines how the dismantling
of coercive institutions associated with the end of
apartheid in South Africa in 1994 affected the distribution
of rents from natural resource exports. It identifies the
interplay between coercive institutions and natural resource
rents as an important driver of local development. Using
data from the 1996 census, the paper documents large income
gaps between communities located just-inside and
just-outside the former self-governing territories set aside
for black inhabitants. Examining relative changes between
1996 and 2011, the paper finds that spatial income
convergence was considerably stronger among marginalized
communities with higher initial exposure to resource rents.
These results accord with standard bargaining theory in
which the dismantling of coercive institutions improves the
negotiating position of unionized workers in the mining industry. |
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