Extractive resources for development: Trade, fiscal and industrial considerations

To be truly transformative, opportunities from the high growth rates have to be translated into employment creation, improved productivity and industrialization. For Africa, the capacity to mobilise domestic revenue and to stimulate industrial development from extractive resources is viewed as essential to economic priorities. Domestic industries should be linked to regional and global value chains. The most effective approach is to combine industrial strengths, deepen interconnectedness and develop competitive and functioning markets. The role of development partners in supporting African initiatives can only be modest: key impetus and drive should come from Africans themselves, and resource-rich countries have potentially greater means to reform their economies. Read Discussion Paper 156 Photo: John Hogg / World Bank