Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome

The theory of an Intrusive Rentier Syndrome is a recent attempt in Canada to explain long-term decline in hinterland communities and regions dependent on mining and other primary industries. The theory claims that, in the resource region’s small or medium-sized communities with a large mine and othe...

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Main Author: David Leadbeater
Format: Article
Language:English
Published: Association Recherche & Régulation 2022-01-01
Series:Revue de la Régulation
Subjects:
Online Access:https://journals.openedition.org/regulation/20637
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author David Leadbeater
author_facet David Leadbeater
author_sort David Leadbeater
collection DOAJ
description The theory of an Intrusive Rentier Syndrome is a recent attempt in Canada to explain long-term decline in hinterland communities and regions dependent on mining and other primary industries. The theory claims that, in the resource region’s small or medium-sized communities with a large mine and other capital-intensive industry, unionized workers are able to gain a portion of resource rents and set a high-wage norm in the communities; the high-wage norm is a major obstacle to entrepreneurship and diversification. This critical examination of the theory focuses on the theory’s flawed views of the relationship among resource wages, resource rents, and community wages, the role of local demand, and the issue of low education. The analysis is centred on hardrock mining communities with special attention to Northern Ontario, the largest metal mining region in Canada. From the critique of the Intrusive Rentier Syndrome theory is proposed an alternative political economy of labour market “adjustment” in hinterland regions, one based on Marx’s labour reserve concept.
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spelling doaj-art-f3d84af7afa841489a10493f12a1fb082025-01-30T14:26:44ZengAssociation Recherche & RégulationRevue de la Régulation1957-77962022-01-0131210.4000/regulation.20637Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier SyndromeDavid LeadbeaterThe theory of an Intrusive Rentier Syndrome is a recent attempt in Canada to explain long-term decline in hinterland communities and regions dependent on mining and other primary industries. The theory claims that, in the resource region’s small or medium-sized communities with a large mine and other capital-intensive industry, unionized workers are able to gain a portion of resource rents and set a high-wage norm in the communities; the high-wage norm is a major obstacle to entrepreneurship and diversification. This critical examination of the theory focuses on the theory’s flawed views of the relationship among resource wages, resource rents, and community wages, the role of local demand, and the issue of low education. The analysis is centred on hardrock mining communities with special attention to Northern Ontario, the largest metal mining region in Canada. From the critique of the Intrusive Rentier Syndrome theory is proposed an alternative political economy of labour market “adjustment” in hinterland regions, one based on Marx’s labour reserve concept.https://journals.openedition.org/regulation/20637mining communitieshinterland community developmentIntrusive Rentier SyndromemetropolitanismNorthern Ontario
spellingShingle David Leadbeater
Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
Revue de la Régulation
mining communities
hinterland community development
Intrusive Rentier Syndrome
metropolitanism
Northern Ontario
title Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
title_full Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
title_fullStr Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
title_full_unstemmed Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
title_short Hinterland decline, resource rents, and resource wages: A critique of the theory of an Intrusive Rentier Syndrome
title_sort hinterland decline resource rents and resource wages a critique of the theory of an intrusive rentier syndrome
topic mining communities
hinterland community development
Intrusive Rentier Syndrome
metropolitanism
Northern Ontario
url https://journals.openedition.org/regulation/20637
work_keys_str_mv AT davidleadbeater hinterlanddeclineresourcerentsandresourcewagesacritiqueofthetheoryofanintrusiverentiersyndrome