Ross - How Mineral-Rich States Can Reduce Inequality.pdf
What should governments in mineral-rich states do about the gap between rich and poor populations (vertical inequality), and the gap between mineral-rich and mineral-poor regions (horizontal inequality)? This chapter looks at how mineral wealth can affect vertical and horizontal inequality, and what governments can do about it. It also explores the advantages and disadvantages of the decentralization of mineral revenues, and offers a series of guidelines for states that seek to better manage the distributional problems caused by mineral booms.
This article was originally published as Chapter 9 in Humphreys, Sachs, Stiglitz (eds.), Escaping the Resource Curse, Columbia University Press and Revenue Watch Institute, 2007.
