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Resource-based African Development Strategy - Partnership to Cut ...

Resource-based African Development Strategy - Partnership to Cut ...

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The resource curse can be avoided!“Deepening” the resource sec<strong>to</strong>r linkages: development ofthe resource inputs & outputs industries is criticalFinland: 1970 on primarycommodities (pc- mining & forestry)inverted U-curve, Finland: but e.g. shifts Forestrygrewcapital curve goods (mf-resources (machinery) inputs exports &andoutputs/beneficiation).value-added exports<strong>to</strong> 1998manufacturing(wood manufactures,Chile: 1970 on manufacturingpulp/paper)p/pape U-curve (ISI), but shifts <strong>to</strong> 1998primary commodities (mining &agriculture) curve, after opening upits economy (coup) in the 70’s.RADSFinland managed <strong>to</strong> shift from a 1970 resources (pc) trajec<strong>to</strong>ry <strong>to</strong> a 1998manufactures (mf) trajec<strong>to</strong>ry, through the development of its resources inputs(machinery) and outputs (value-addition) sec<strong>to</strong>rs (source Palma, G. 2004)<strong>Resource</strong>-<strong>based</strong> <strong>African</strong> <strong>Development</strong> <strong>Strategy</strong>

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