Influence of Communal Resource Extraction on Economic Development
Abstract
This research interrogates how communal resource extraction contributes to economic
development. The study calls into question the conventional wisdom that resource
abundance and extraction lead to development. Departing from previous studies which
concentrated on state-led resource exploitation, it examined how communal exploitation
of red-sand has impacted on employment, income levels and demand for local
non-tradable goods in Laikipia North. It also assessed the regulatory framework that
controls extraction, income redistribution and ecological impacts. The study also sought
to identify the challenges and opportunities in balancing economic and ecological
priorities in extraction of communal resources. Primary data was collected from
randomly sampled households while participants in FGD and Key informant interviews
were purposively sampled. Findings indicate failure of forward and backward economic
linkages to generate development. Findings also point to existence of a gated enclave
dominated by a class of the propertied, bureaucrats and local politicians who control
extraction business through influence and ownership of construction companies. Further,
the resource-exploiting agent has failed to offset ecological costs incurred in the run to
satiate a growing demand for red-sand. Evidence suggests failure to channel resource
rents into alternative income generating investments. It also shows missing infrastructural
linkages with resource extraction. Lack of a coherent exploitation framework poses a
challenge to harmonized economic development. The study finds the absolute scarcity of
sand in the contiguous counties and its concentration in Laikipia North coupled with an
assured market as a great opportunity which can be tapped to develop the sub-county.
Publisher
University of Nairobi
Subject
Communal Resource ExtractionRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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