Natural Resource Abundance and High Income

This lecture by the instructor explores the lack of correlation between natural resource abundance and high income, using data on GNI per capita and total natural resources rents. It discusses the impact of large-scale tax avoidance on resource-exporting countries, highlighting the harmful effects on tax revenues. The lecture also presents a fictitious example illustrating profit shifting in multinational enterprises. Furthermore, it delves into the dependence of many African countries on mining, emphasizing the importance of the mining sector in their economies. Lastly, it touches upon the 'curse of natural resources' phenomenon, showcasing the challenges faced by resource-rich countries in managing their wealth and maintaining stability.