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By Katja Hujo

An exploration of the results of mineral-led wealth and the possibilities that this creates for monetary and social improvement. The booklet comprises theoretical and coverage analyses in addition to micro point state case reports, together with Norway, Chile, Indonesia, Nigeria and Botswana.

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Additional resources for Mineral Rents and the Financing of Social Policy: Opportunities and Challenges

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2005a. Democracy and Resource Rents. gprg. pdf, accessed on 25 September 2006. —— 2005b. ‘Resource rents, governance and conflict’. Journal of Conflict Resolution, Vol. 49, No. 4, pp. 625–33. Davis, Graham A. and John E. Tilton. 2002. Should Developing Countries Renounce Mining? A Perspective on the Debate. pdf, accessed on 5 October 2006. De Ferranti, David, Guillermo E. Perry, Daniel Lederman and William F. Malony. 2002. From Natural Resources to the Knowledge Economy: Trade and Job Quality. Washington, DC: World Bank.

Gobierno de Chile (Government of Chile). 2007. Estadísticas de las Finanzas Públicas. Ministerio de Hacienda, Dirección de Presupuestos, Santiago de Chile. cl, accessed on 14 November 2007. Gough, Ian and Geof Wood (eds). 2004. Insecurity and Welfare Regimes in Asia, Africa, and Latin America: Social Policy in Development Contexts. Cambridge: Cambridge University Press. 24 Introduction and Overview Hirschman, Albert O. 1989. ‘Koppelungen in der wirtschaftlichen Entwicklung (Linkages in Economic Development, Chapter 9)’.

However, the authors found a negative association between state revenue and the level of mineral export dependence, whereas a positive association between total state revenue and public social expenditure exists. The cluster analysis shows that mineral wealth reinforces existing characteristics of welfare regimes (Gough and Wood 2004), which means that no structural changes in welfare systems such as shifts from state to markets or vice versa take place. Looking at specific case studies, this observation is confirmed in some countries, whereas in others the welfare mix is changed – that is, the balance between state, market or informal social provisioning, with mineral rents playing a significant Katja Hujo 13 role in providing the financial base for these changes, as the cases of Bolivia and Venezuela demonstrate.

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