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Article Review - Bush, R. (2007). Wealth and poverty: mining and the curse of resources? In: Poverty and Neoliberalism: Persistence and Reproduction in the Global South. London: Pluto Press. $6.99   Add to cart

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Article Review - Bush, R. (2007). Wealth and poverty: mining and the curse of resources? In: Poverty and Neoliberalism: Persistence and Reproduction in the Global South. London: Pluto Press.

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Article Review - Bush, R. (2007). Wealth and poverty: mining and the curse of resources? In: Poverty and Neoliberalism: Persistence and Reproduction in the Global South. London: Pluto Press.

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  • October 28, 2024
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‭5PIRS011W.2 Rethinking Development‬


‭Bush, R. (2007). Wealth and poverty: mining and the curse of resources? In:‬‭Poverty and‬
‭N eoliberalism: Persistence and Reproduction in the Global South‬‭. London: Pluto Press.‬



‭Despite seeming like a natural endowment guaranteeing economic growth, resources have been‬
‭s een as a curse. As Saad-Filho et al. (2013) note, resource abundance is correlated with poor‬
‭growth and poverty, resulting in a reliance on primary product exports (4). Bush's chapter‬
‭explains the cause of this lack of growth and the overreliance on commodities. Bush's article‬
‭will be summarised within this discussion paper, and its strengths, weaknesses, and‬
‭modern-day applications will be identified. The chapter's strength is its focus on Africa's‬
‭dispossession of resources, which led to not only stigmatised development but also dependence‬
‭on Western capital. Another strength is its focus on the concept of rentiers as a conduit for‬
‭s tigmatising development and facilitating poverty in sub-Saharan Africa through corruption. The‬
‭weakness of the paper is its failure to expand on countries which do not have a resource curse‬
‭despite their resource endowment, such as Botswana. Identifying the modern-day application,‬
‭s een in the 2008 crisis and COVID-19 pandemic. Concluding that, Bush's chapter is still highly‬
‭relevant. It is an essential piece of work to consider when attempting to understand‬
‭development and why resource-possessing sub-saharan nations have not been able to develop.‬


‭The chapter "Wealth and Poverty: Mining and the Curse of Resources?" by Bush explores the‬
‭impact of resource dependency on economic development in African countries, particularly in‬
‭the context of mineral-rich nations. The short-term economic growth in sub-Saharan nations‬
‭whereby high oil and metal prices led to optimism about Africa's economic growth, projecting‬
‭rates around 5.8% being misplaced due to aggressive imperialist interest and the violent‬
‭accumulation of Africa's assets through dispossession (1). Driven by imperialist states and‬
‭international capital corporations, particularly in the context of increased world market prices‬
‭for commodities. Dispossessions undermine development efforts, contradicting the promises of‬
‭growth and benefits to producer states, whereby isolated resource wealth has led to local‬
‭capital accumulation strategies (3), creating and sustaining African elites and, generating‬
‭opposition and contributing to authoritarian politics (3). The text delves into the global power‬


‭1‬

, ‭5PIRS011W.2 Rethinking Development‬


‭dynamics of the United States' assertive pursuit of dominance in West Africa's petroleum‬
‭reserves and the concentration of world production in the hands of a few corporations. Touching‬
‭upon the resource curse and the influence of class and social forces on state development‬
‭policies (3). Diversification challenges arise from the failure to foster independent development‬
‭s trategies, contributing to the entanglement of the "resource curse." The concept of a rentier‬
‭s tate, reliant on external rent, is dissected, with the text suggesting that associated political‬
‭dynamics hinder effective governance. Transparency initiatives like the Extractive Industries‬
‭Transparency Initiative (EITI) are mentioned (27), critiquing their efficacy and emphasizing a‬
‭focus on corruption rather than addressing underlying causes of injustice and inequality. In‬
‭conclusion, the text underscores the variability of Africa's responses to the global mining‬
‭industry, stressing that the benefits derived from resource endowments hinge on global‬
‭commodity prices and local socio-economic forces. (Bush, 2007)‬


‭The chapter’s main argument is that Africa’s possession of resources is more of a curse than a‬
‭blessing, as due to the United States and oil companies possessing African reserves, this‬
‭vicious imperialist drive for resources has stigmatised African development. It illustrates the‬
‭dispossession of sub-Saharan locals due to capital-driven mining corporations (Bush, 2007; 3),‬
‭creating dependency on Western capital. As shown in Table 5.1, ten African countries have‬
‭s eventy per cent of their exports dominated by only one commodity (Bush, 2007; 4). However,‬
‭until the mid-1960s, these minerals for the booming world economy did not benefit Africa‬
‭financially (Bush, 2007; 12). This isolation of wealth (Bush, 2007; 9) illustrates the capture of‬
‭resources by imperialist states and is a nod to dependency theory, whereby the livelihood of‬
‭s ub-saharan locals depends on Western capital. The chapter’s concept of dependency theory‬
‭can be seen in its account of 2002, when the Anglo-American mining company announced its‬
‭intention to leave the copper belt in Zambia, jeopardising half of the country’s foreign exchange‬
‭earnings and at least 11,000 jobs (Bush, 2007; 14). Bush’s chapter gives excellent detail in‬
‭illustrating how the privatisation of natural resources has caused developing nations to be‬
‭dependent on Western capital, aligning with Chant et al.’s account of dependency theory, which‬
‭s tates underdevelopment was caused by the exploitative influence of the industrialised nations,‬



‭2‬

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