Extractive Economies and Sustainable Development: An analysis of infrastructure, health and social development

Abstract

Extractive economies can use the natural resource dividend for infrastructure and sustainable development. However, the reality of achieving this is far more complex than one might expect. This paper aims to present some fresh analysis of data of extractive economies to answer three main questions: a. how are extractive economies performing with regard to providing basic services such as health, education, water and sanitation; b. are there patterns of success; and c. what are the implications for policy and action especially in the context of the proposed sustainable development goals. The first issue of course is to define the category extractive economy. Using a new methodology, this paper focuses on the top 40 oil economies, top 41 gas economies and 56 mineral economies. Because some countries do have all three or two of these three natural resources, the overall dataset is of 91 countries covering both developed and developing economies and in all continents. Data pertaining to years 2002 to 2012 is analysed here. While some results are perhaps as may be expected, there are several disturbing findings as well. Extractive economies are among some of the poorly performing countries on indicators highly relevant to prosed SDGs on poverty, health, water and sanitation, and energy. This highlights the need for a strategic focus and developing appropriate mechanisms to use the natural resource dividend to make lasting transformation of social and economic well-being.