Do African countries avoid the curse of natural resources on social cohesion?

Abstract

The interest in social cohesion as a key driver of inclusive societies, and the pillar of sustainable economic development is still very much alive. However, the strong socio-cultural heterogeneity between social groups, conflicts, coups and socio-political crisis reinforces evidence of an undermining of social cohesion in Africa. Using system Generalized Method of Moments dynamic techniques, this paper analyses the effects of natural resource dependence on social cohesion and the underlying mechanisms in a sample of 33 African countries over the period 1990–2020. The results show that natural resources are associated negatively with social cohesion in Africa. However, the elasticity associated with point resources is greater and more significant than that for diffuse resources. Results are robust to many robustness checks, such as the alternative strategy, which combines alternative natural resources and social cohesion measures, addition of other control variables and by using outlier analysis. The human capital, institutional quality and inequality are the main channels through which natural resources affect cooperation and respect among different identity-based groups in Africa. Findings suggest further evidence about natural resources effects and provide law enforcement reform to improve human capital, institutional quality and reduce inequality, which is necessary in strengthening social cohesion in Africa. One potential pathway for such policies could focus on expanding opportunities for groups facing barriers that undermine their contribution to society, participation in decision-making and self-esteem. Therefore, African governments should improve the management of natural resources to ensure better implementation of public policies and support capacity-building and infrastructure programmes.