Title: A Thoroughly Modern Resource Curse? The New Natural Resource Policy Agenda and the Mining Revival in Peru
Author/Institution: Anthony Bebbington et al. – Institute of Development Studies (IDS Working Paper)
Publication Year: 2008
The IDS Working Paper (2008) sheds light on how Peru’s recent mining boom, despite adherence to the so-called “new natural resource policy agenda” (which includes fiscal discipline, decentralization, citizen participation, and public–private collaboration), has failed to deliver meaningful poverty reduction. Anchored in careful analysis of revenue flows—especially via the canon Minero—the study shows that soaring mineral revenues have largely been dissipated at the subnational level through inefficient public expenditure, weak local institutions, and poorly coordinated spending.
A deep dive into regional dynamics exposes the emergence of new political actors—local governments, mining companies, and social movements—clashing over the allocation of resource revenues. The original intent of the new policy agenda, which aimed to channel benefits via local democratic governance, has instead created complex conflicts, reinforcing a modern version of the resource curse. The localized fragmentation of authority and absence of technical capacity compound conflict rather than resolve it.
Instead of framing it as a simple paradox, Arellano-Yanguas shows how resource nationalism without strong governance can turn into a driver of conflict rather than development. Reforms that focus narrowly on taxation or ownership often fail if they do not strengthen local institutions and transparent revenue-sharing systems. This warning resonates with current developments: Ghana’s mining law reform is attempting to avoid exactly this trap by tying license stability to performance and mandating direct community revenue flows. Meanwhile, the DRC’s shift toward a quota-based cobalt regime reflects an effort to modernize policy while still ensuring national control—yet its success will depend on whether new rules are enforced fairly, and benefits reach local populations.
Issue Profile – Peru’s Resource Boom and the Evolution of the “Resource Curse”
Lead Actor: Government of Peru; local and regional authorities; mining corporations
Focus: Impact of Peru’s 2000s mining revival and resource governance reforms on poverty reduction, decentralization, and community stability
Update (2008): Despite higher mineral rents and new policies, resource wealth did not translate into effective poverty alleviation. Weak institutions limited local capacity, and lack of accountability mechanisms allowed revenues to fuel social conflicts and poor public investment outcomes.
Strategic Significance: Demonstrates that without robust governance frameworks and credible fiscal inclusion, mineral booms can deepen inequality and trigger local unrest—transforming resource abundance into a modern version of the “resource curse.”