By Glenn-Marie Lange (auth.), Rashid M. Hassan, Eric D. Mungatana (eds.)
Leaving apart human and social capital for a destiny quantity, the publication may be seen as a very important first step in constructing symptoms for overall wealth within the international locations lined by way of the case stories, which come with Kenya, Uganda, Tanzania, Ethiopia, Mozambique and South Africa. those case stories scan with enforcing the SEAA in sub-Saharan countries recognized to be afflicted by the ‘resource curse’: their wealth in assets and commodities has allowed inflows of liquidity, but this money has no longer funded the most important advancements in infrastructure or schooling. What’s extra, resource-driven economies are hugely at risk of commodity rate mutability. the hot measures of wealth deployed right here provide extra desire for the long run in those nations than they themselves might as soon as have allowed for.
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Extra resources for Implementing Environmental Accounts: Case Studies from Eastern and Southern Africa
In all years, diamond rent is positive and a large component of total mining rent. In some years, diamond rent even surpasses total rent. This occurs in years when rents for other minerals (not reported here) are negative, that is, mining companies do not earn enough to cover their full capital costs including a normal profit. Pilchard generated the most rent at the beginning of Namibian independence but was eventually surpassed by hake. This is not surprising since Namibia already had an established pilchard fishery prior to independence and only achieved control over the other fisheries over the past decade.
The preliminary asset value for ecosystems— based solely on wildlife values for tourism and subsistence use—was estimated for 2003 at N$1,267 million in current prices; in 1995 constant prices, N$639 million, or N$332 per capita, about 1% of total wealth. Preliminary work based on the asset value of the Okavango Delta in Botswana indicates that ecosystem assets contribute significantly to Botswana’s total wealth (Turpie et al. 2006). While the measure of total wealth presented here is an important step towards a comprehensive measure of wealth, human capital continues to present a major challenge, especially in countries like Namibia, which are struggling with the HIV/ AIDS pandemic.
Rent recovery improved significantly after independence, from an average of 17% before 1990 to 39% after 1990. In the past, taxes designed to recover rent were only levied on diamond mining; taxes paid by other mining operations fall within the range of normal corporate taxes on income. However, in the past few years, the government has introduced a tax on other minerals, 2–3% depending on the type of mineral. Whether this degree of rent recovery is sufficient is difficult to determine. When rent is so volatile, it is not feasible to attempt full rent recovery, and government must be careful not to set taxes so high as to discourage investment.