『(Abstract)
Sustainable development requires that consumption by present
generations should not be at the expense of future generations.
For mineral economies this means substituting an alternative income
source for the depleting mineral asset and curbing environmental
degradation. But Dutch disease (the negative symbiosis between
the mining and other tradable sectors which mutes both the rate
and efficiency of economic growth) can subvert both sustainability
goals. First, Dutch disease weakens the non-mining tradables sector
so that it cannot propel the economy should mining be marginalized.
Second, Dutch disease retards economic growth so that investment
in environmental management and clean technology is slow and environmental
damage is the greater. Sustainable development must therefore
overcome Dutch disease and this requires a pragmatic orthodox
macroeconomic policy. The latter mutes the damaging impact of
fluctuating ore revenues and spurs competitive diversification
and economic growth so that new investment and the rapid adoption
of environmentally sensitive technology is facilitated.』
(Introduction)
Mineral exporters' economies underperform
Diverging economic performances 1970-90
Convergence on doctrinaire macro orthodoxy
Chile's reversion to pragmatic orthodoxy
Peru's lapse into structuralist policies
Environmental degradation
The problem
Mine ownership and environmental response
Environmental management prospects
The environmental trade off
Conclusions