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Beware of the mine! the political economy of mines in Northern Mozambique
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We examine the e ect of natural resources on the social and political fabric of lowincome
communities. We combine geospatial data on mining activity with household
surveys we conducted in Northern Mozambique. We nd that mines decrease the level
of trust, especially in neighbors, local and national leaders. In the same direction,
households living in mining areas contribute less to public goods. A signi cant negative
e ect on participation to local community groups only emerges when using matching
methods. On the political side, mineral endowments lead to institutional degradation in
the form of lower level of democratic decision-making in the community, lower preference
for democratic decisions by the households and increased corruption in the allocation
of public funds, which suggest rent-seeking behavior of both the political elite and the
population. We also document weak evidence of violence within and around mining
areas. These results unveil the presence of both social and political mechanisms behind
the natural resource curse and call for carefully monitoring the ongoing expansion of
the extractive industries in Africa.
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political economy Natural resources Resource curse Mines trust Rent-seeking Mozambique Africa