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Natural Resources and Political Patronage in Africa: An Ethnicity Level Analysis

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  • Nemera Mamo

    (Department of Economics, University of Sussex
    SOAS, University of London)

  • Sambit Bhattacharyya

    (Department of Economics, University of Sussex)

Abstract

We investigate the effect of resource discoveries on ethnicity level political patronage in Africa using a large geospatial dataset of 254 ethnic groups in 15 countries over the period 1960 to 2004. We find that the first (or single first) resource discovery in a virgin ethnic homeland increases the share of cabinet posts of that ethnicity. The effect is induced by both expectations and rent. Overall the effect is mainly driven by major mineral discoveries as opposed to oil and gas. The discovery shocks do not trigger monopoly or dominant access to power, autonomy, separatism, and exclusion. Our analysis reveals that point source resource (mineral) rents are far more important political currency than diffuse agricultural commodity rents. Furthermore, by ranking ministries into Top and Bottom levels we find some evidence of window dressing politics. Our results survive a battery of robustness tests and controls.

Suggested Citation

  • Nemera Mamo & Sambit Bhattacharyya, 2018. "Natural Resources and Political Patronage in Africa: An Ethnicity Level Analysis," Working Paper Series 0418, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:0418
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    File URL: https://www.sussex.ac.uk/economics/documents/wps-04-2018.pdf
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    Cited by:

    1. Nicolas Berman & Mathieu Couttenier & Victoire Girard, 2023. "Mineral Resources and the Salience of Ethnic Identities," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1705-1737.
    2. Victoire Girard & Nicolas Berman & Mathieu Couttenier, 2020. "Natural resources and the salience of ethnic identities," NOVAFRICA Working Paper Series wp2007, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.

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    More about this item

    Keywords

    Resource discovery; Political Patronage; Africa;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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