natural resources

The Cost of Independence

Topics: Governance, Informal Economy
Countries: Kosovo

Has Kosovo's first year of independence truly been "totally successful," as Prime Minister Hasim Thaci asserts?

Nearly half of all Kosovars live in poverty, and there are only enough jobs for one out every two people.

Kosovo's economy is heavily dependent on remittances from abroad and foreign aid, two income sources expected to decline given the global financial crisis. And the foreign investment promised by the government has yet to materialize.

There remains untapped potential in the mining industry. Geologists recently discovered vast amounts of high-quality lignite coal (up to 15 billion tons) and considerable nickel, lead, zinc and bauxite deposits, and traces of gold.

But you have to wonder who would want to invest in any industry in a country ranked in the top fifth of the world’s most corrupt countries by Transparency International. Then there's the the threat of the mob. The UN mission in Kosovo estimates organized crime to account for some 15-20 percent of Kosovo's economy.

"For 10 years we linked every problem to status," said Shpend Ahmeti, director of the Institute for Advanced Studies in Pristina, referring to Kosovo's struggle to separate from Serbia. "We thought independence was going to simplify things. It has not. Independence has removed a mental block among Kosovars. Now, in every poll, the priority is not status, but jobs. We've moved from survival, to development and prosperity as a great need we don't yet have."

Biting the Hand that Feeds You

Countries: Senegal

This week's New York Times article Europe Takes Africa's Fish and Migrants Follow raises a perplexing problem:

A vast flotilla of industrial trawlers from the European Union, China, Russia and elsewhere, together with an abundance of local boats, have so thoroughly scoured northwest Africa’s ocean floor that major fish populations are collapsing.

That has crippled coastal economies and added to the surge of illegal migrants who brave the high seas in wooden pirogues hoping to reach Europe. While reasons for immigration are as varied as fish species, Europe’s lure has clearly intensified as northwest Africa’s fish population has dwindled.

Last year roughly 31,000 Africans tried to reach the Canary Islands, a prime transit point to Europe, in more than 900 boats. About 6,000 died or disappeared, according to one estimate cited by the United Nations.

The question then arises: who bears the brunt of responsibility for these dwindling fish populations and the subsequent affect on local fishers? The foreign boats which deplete the waters and the foreign consumers which demand them to do so? The local governments, who strapped for cash, make decisions to sell resources needed by their people to fill the government coffers and/or fund state programs?

From the Archives

The Malaysian Miracle

Previously filed under: Asia, Global Economy
Economic growth in Malaysia shows that a strategy of bringing the bottom up can lead to success.

From the Archives

Knowledge for Natural Resources

Countries: China
Previously filed under: Asia, Technology
China and Africa are forging links using Africa's resources, but is it an even deal?

From the Archives

Property Rights and the Resource Curse

Previously filed under: Africa, Global Economy
Many countries with the most abundant reserves of natural resources also have citizens with the lowest standards of living.

From the Archives

African Ecologists Unite for the Environment

Previously filed under: Africa, Environment
Scientists in Africa are joining together to fight the effects of climate change, pests and unsustainable development.

Stories We're Watching

'Quiet Corruption' Hurting Africa's Poor

San Francisco Chronicle - Mon, 03/15/2010 - 09:22
A World Bank report says teachers and other public servants who don't show up for work are fueling "quiet corruption" throughout Africa that is disproportionately hurting the continent's poor.

Industrial Output Up; Hopes For Factories Grow

NPR - Mon, 03/15/2010 - 08:45
Industrial production edged up 0.1 percent in February, beating expectations and marking the eighth straight monthly increase.

Cash For Work and Planning for the Future

Mercy Corps Blog - Sun, 03/14/2010 - 23:23
Two Mercy Corps workers talk with 62-year-old Rosemarie Joseph in her makeshift tent at the Lycée Jean-Marie Vincent displacement camp in Port-au-Prince.

Price Gap Spices Sugar Fight

Wall Street Journal - Tue, 03/16/2010 - 21:09
The battle over U.S. sugar quotas is flaring once more as the gap between domestic and much-lower global prices reaches its widest level in at least a decade.

Ushahidi - Africa’s Gift to Silicon Valley

International Herald Tribune - Sun, 03/14/2010 - 12:08
A small Kenyan-born Web site is bringing crowdsourcing to disaster relief and other humanitarian causes.

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