Natural Resources and Affluence

This lecture explores the relationship between natural resource abundance and high income, showing that the two are not necessarily correlated. It delves into the impact of natural resource rents on GDP, the challenges of tax avoidance in the mining sector, and the consequences of profit shifting by multinational enterprises. The instructor discusses how tax heavens attract sales and presents a fictitious example to illustrate profit shifting. Moreover, the lecture highlights the dependency of many African countries on mining and the significant role of Africa in global mineral production. The session concludes by emphasizing the complexities of international trade in natural resources.