Resource‐based sustainable development: an alternative approach to industrialisation in South Africa

Abstract

This paper explores the possibility of a resource‐based approach to industrialisation in South Africa. While mineral endowments are generally regarded as a “curse” for long‐term growth, the experiences of highly‐industrialised economies such as Sweden, Finland and the United States suggest that promoting clusters of ‘sidestream’ and ‘downstream’ activities can assist in achieving national development goals in terms of economic diversification and increasing the well‐being of the population. Given the high‐tech nature of mining‐ and minerals‐processing activities, such a sector offers numerous possibilities for catalysing sustainable development and facilitating South Africa's gradual transition to a knowledge‐based economy.

Keywords:

• resource‐based development
• industrialisation strategies
• mining clusters
• South Africa