Commodity Rich but Income Poor Countries

Hira Shahnawaz Akhtar

Published onAugust 21, 2012

Updated on May 13, 2021

In a world where settlements are formed around discovery of natural resources, conventional wisdom dictates that high economic rents – in the form of high commodity prices – would be earned by commodity rich countries. The land of UAE was formed around the mineral discoveries in the area, and Dubai became one of the business capitals of the world.

However, this is not always the case. Recent discovery of natural resources in Ghana, Mozambique, Uganda, and Tanzania has raised questions about whether this will bring economic prosperity to these economies. Many would expect these African nations to embark on a path to development, but much research has established that commodity rich countries tend to grow more slowly...

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Hira Shahnawaz Akhtar

Hira is a financial analyst whose expertise lies in commodity and other financial markets. Hira is currently an independent financial consultant and is working with many international firms like American Arab Solutions (AAS). She has previously served as a Senior Research Analyst at Alternate Research (Pvt.) Ltd. as the Team Leader for the International Equities Research. She has also worked as an equities analyst of Pakistani E&P stocks at Invest Capital Markets. She has experience in business development and conducting feasibility studies in commodity markets, specifically in sugar, palm oil and canola oilseeds. She has cleared all three levels of her CFA (Chartered Financial Analyst) and has an undergraduate degree in Finance.

Commodity Rich but Income Poor Countries

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