The Dual Dependency of Natural-Resource-Rich Labor Markets in Contemporary Society

Abstract

This article presents an integrative theoretical framework of subnational natural resource dependence. I argue that rural natural resource dependence represents a special case of the core-periphery relationship, where rural, resource-rich labor markets form a dual dependency on both the global capitalist economy and the local natural environment. This occurs because the contradiction between spatially fixed natural resources and the mobility of capital prompts both external interests and local power elites to use their power to pressure rural labor markets in directions outside their best interest and to exploit rural labor. I argue that both extractive (e.g., mining, timber, agriculture) and nonextractive (e.g., tourism, real estate) forms of natural resource development share this contradiction. Although pushing different uses of the resource base, extractive and nonextractive development do not fundamentally vary in their exploitative relationship with rural labor markets.