Countries that are dependent on mineral resources often struggle to maximise the benefits from their minerals because regulations are not in place to make sure that benefits flow equitably to citizens. In countries where governments lack full control of their territory or adequate systems to monitor mining activities, illegal exploitation of these resources and mineral smuggling have the potential to exacerbate conflict.
For many countries rich in oil, gas and minerals, development remains an elusive goal. The rich get richer, the poor stay poor, inequality rises, economies stagnate, corruption flourishes and conflict deepens.
An abridged version of the paper is available at VoxEU.org