Resourse Dependence and Sustainable Industrialisation: A Comparative Study

This study analyses the economic structures and resource dependencies of Botswana, Chile, the Democratic Republic of Congo (DRC), Kenya, and Zambia by examining key indicators, including adjusted savings from mineral extraction, manufacturing value added, renewable energy consumption, and mineral rents. Using World Bank data from 1994 to 2021, the study applies descriptive statistics, correlation analysis, one-way ANOVA, and regression analysis to assess differences in resource dependence, industrialisation, and sustainability. The results show that Chile and Zambia have high mineral rents and adjusted savings, reflecting resource dependence, while Kenya and Botswana have minimal dependence on mineral wealth. The Democratic Republic of Congo leads in renewable energy consumption, followed by Zambia, whereas Botswana and Chile lag significantly. The findings highlight the need to balance resource extraction with sustainability, as mineral rents are positively correlated with adjusted savings but negatively correlated with renewable energy consumption. Furthermore, the positive relationship between manufacturing and renewable energy consumption suggests that industrial growth can be aligned with sustainability if appropriate policies are in place. The study also underscores key trends, revealing that whilst higher mineral rents support economic savings, they may discourage investment in renewable energy. Manufacturing value added varies widely across countries, with Chile and the Democratic Republic of Congo possessing stronger industrial bases than Botswana and Zambia. These findings underscore the need for policies that promote industrial diversification, sustainable resource management, and investment in renewable energy. Chile and Zambia should reinvest their mineral wealth in renewable energy, Botswana and Kenya need to accelerate their energy transition, and the DRC should modernise its energy infrastructure to support industrial expansion.

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