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South Africa's Resource Curse

Moeletsi Mbeki writes in the New Statesman:

At least a quarter of the South African population receives social grants that would not be possible if South Africa were not mineral-rich. Without mineral wealth to redistribute, the government would have to work harder and be more creative to find solutions to unemployment and poverty.Resource wealth makes it possible for the government not to have to put an effort into redeveloping the economy to create more jobs, and instead it sustains the unemployed and their dependants with social grants.

via African Path

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