A key challenge facing many resource-rich countries is how to mobilize and effectively use volatile revenues from resource extraction, while addressing social and environmental externalities of mining activities.
Questions about the ultimate size of mineral and energy resource endowments and the degree of fiscal prudence which should be exercised by countries engaged in resource extraction have become central for many developing countries during the recent resource boom.
This paper explores the high dependency of a number of countries of the Southern African Development Community (SADC) on mineral resources, and the relative lack of expected social benefits from the extractive industries sector in these countries.