López Ramón and Michael A. Toman
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199298006
- eISBN:
- 9780191603877
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199298009.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire ...
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This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire resources can be wasteful and characterized by rent-seeking and violent conflict. Weak ownership claims are most likely in countries where the rule of law is not well-established. Second, when a country’s political system is unstable or non-representative, the individual’s claim to a resource stock’s future return can be rendered insecure, reducing the payoff to natural resource conservation. Third, when a country’s natural resources are capable of generating significant rents but institutions of democratic governance and the rule of law are not well-established, corruption by government officials responsible for resource management can encourage rent-seeking, dissipating the benefits those resources would otherwise confer. Fourth, the mix of private vs. public good outputs produced by a nation’s natural resources (e.g., forests) can be affected by its political system. When a country’s government does not represent the interests of the entire population, the use of resource stocks to provide public good amenities, as opposed to salable products, may be under-emphasized.Less
This chapter examines evidence on the four ways in which a nation’s political system and its natural resource use are linked. First, when property rights to resources are weak, competition to acquire resources can be wasteful and characterized by rent-seeking and violent conflict. Weak ownership claims are most likely in countries where the rule of law is not well-established. Second, when a country’s political system is unstable or non-representative, the individual’s claim to a resource stock’s future return can be rendered insecure, reducing the payoff to natural resource conservation. Third, when a country’s natural resources are capable of generating significant rents but institutions of democratic governance and the rule of law are not well-established, corruption by government officials responsible for resource management can encourage rent-seeking, dissipating the benefits those resources would otherwise confer. Fourth, the mix of private vs. public good outputs produced by a nation’s natural resources (e.g., forests) can be affected by its political system. When a country’s government does not represent the interests of the entire population, the use of resource stocks to provide public good amenities, as opposed to salable products, may be under-emphasized.
Richard Pomfret
- Published in print:
- 2019
- Published Online:
- May 2019
- ISBN:
- 9780691182216
- eISBN:
- 9780691185408
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691182216.003.0003
- Subject:
- Business and Management, International Business
This chapter examines the characteristics of the natural resources that are important for Central Asia. At independence, cotton was the most important commodity export from Central Asia, but cotton ...
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This chapter examines the characteristics of the natural resources that are important for Central Asia. At independence, cotton was the most important commodity export from Central Asia, but cotton did not share in the commodity boom, never repeating the 1995 peak price of over a dollar per pound. In the twenty-first century, cotton has been displaced by oil and gas and minerals. However, all the governments have shown concern about ongoing dependence on primary product exports, whose importance increased after independence despite plans for economic diversification. The chapter then reviews the resource curse literature that highlights why primary product dependence may be harmful. Resource curse outcomes are not inevitable, but resource-abundant countries do face significant obstacles if they want to avoid such an outcome.Less
This chapter examines the characteristics of the natural resources that are important for Central Asia. At independence, cotton was the most important commodity export from Central Asia, but cotton did not share in the commodity boom, never repeating the 1995 peak price of over a dollar per pound. In the twenty-first century, cotton has been displaced by oil and gas and minerals. However, all the governments have shown concern about ongoing dependence on primary product exports, whose importance increased after independence despite plans for economic diversification. The chapter then reviews the resource curse literature that highlights why primary product dependence may be harmful. Resource curse outcomes are not inevitable, but resource-abundant countries do face significant obstacles if they want to avoid such an outcome.
Raphael Espinoza, Ghada Fayad, and Ananthakrishnan Prasad
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199683796
- eISBN:
- 9780191763373
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683796.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The GCC countries have thus far managed to leverage their large natural resource wealth to achieve economic prosperity and finance social advances, and have also emerged as important sources of funds ...
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The GCC countries have thus far managed to leverage their large natural resource wealth to achieve economic prosperity and finance social advances, and have also emerged as important sources of funds for the wider region. Nevertheless, much remains to be done, and there are challenges ahead in terms of structural long-term issues (growth, labor markets and immigration, diversification, and market efficiency) and of management of macroeconomic cycles (role of fiscal and monetary policies, performance of banks and financial markets). The book focuses on these two fronts in its core seven chapters, combining data and econometric analysis with theoretical discussions. The book concludes with an analysis of the importance of the GCC to the wider region.Less
The GCC countries have thus far managed to leverage their large natural resource wealth to achieve economic prosperity and finance social advances, and have also emerged as important sources of funds for the wider region. Nevertheless, much remains to be done, and there are challenges ahead in terms of structural long-term issues (growth, labor markets and immigration, diversification, and market efficiency) and of management of macroeconomic cycles (role of fiscal and monetary policies, performance of banks and financial markets). The book focuses on these two fronts in its core seven chapters, combining data and econometric analysis with theoretical discussions. The book concludes with an analysis of the importance of the GCC to the wider region.
Glada Lahn and Paul Stevens
- Published in print:
- 2018
- Published Online:
- November 2018
- ISBN:
- 9780198817369
- eISBN:
- 9780191858871
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198817369.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
In the context of falls in extractive commodities prices since 2011, this chapter examines the history of thinking about the interplay between extractive industries and economic development. Just as ...
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In the context of falls in extractive commodities prices since 2011, this chapter examines the history of thinking about the interplay between extractive industries and economic development. Just as ‘the resource curse’ fails as a generic explanation on account of the huge diversity in country contexts, so does the one-size-fits-all governance solution, which international aid agencies, industry, and banks have promoted in support of ‘extractives-led growth’ since the early 2000s. Asking why the sector has not in many cases yielded more durable economic gains reveals the need for greater attention to a country’s capacity to diversify, options for pacing development, and appropriate performance measures.Less
In the context of falls in extractive commodities prices since 2011, this chapter examines the history of thinking about the interplay between extractive industries and economic development. Just as ‘the resource curse’ fails as a generic explanation on account of the huge diversity in country contexts, so does the one-size-fits-all governance solution, which international aid agencies, industry, and banks have promoted in support of ‘extractives-led growth’ since the early 2000s. Asking why the sector has not in many cases yielded more durable economic gains reveals the need for greater attention to a country’s capacity to diversify, options for pacing development, and appropriate performance measures.
Richard M. Auty
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199580934
- eISBN:
- 9780191723346
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199580934.003.0014
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is ...
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This chapter conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is beneficial. Foreign aid shares with natural resource rent and contrived (i.e., government monopoly) rent the property of being a large revenue stream that is detached from the economic activity that generates it, and elicits political contests for its capture. Rent-driven models suggest such contests have two adverse effects: (i) they deflect government incentives into rent-channelling at the expense of promoting wealth creation; and (ii) the resulting political allocation of the rent distorts the economy and precipitates a growth collapse, which is protracted. In this context, the three principal causes of aid failure identified in the literature (corruption, a poor policy environment and Dutch disease effects) are all symptoms of the destabilizing impact of rent streams on immature political economies. Consequently, the deployment of foreign aid to revive collapsed economies runs the risk of perpetuating rent-seeking and thereby postponing essential economic restructuring. This chapter compares the varied impacts of aid on the development trajectories of Mauritania, Kenya, and Mozambique. It argues that successful aid deployment requires: recognition that aid modalities differentiate aid's effectiveness; stronger public accountability; and the construction of a cohesive pro-reform political constituency. The paper proposes a dual track strategy as a politically practical means of deploying geopolitical rent to restructure distorted economies.Less
This chapter conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is beneficial. Foreign aid shares with natural resource rent and contrived (i.e., government monopoly) rent the property of being a large revenue stream that is detached from the economic activity that generates it, and elicits political contests for its capture. Rent-driven models suggest such contests have two adverse effects: (i) they deflect government incentives into rent-channelling at the expense of promoting wealth creation; and (ii) the resulting political allocation of the rent distorts the economy and precipitates a growth collapse, which is protracted. In this context, the three principal causes of aid failure identified in the literature (corruption, a poor policy environment and Dutch disease effects) are all symptoms of the destabilizing impact of rent streams on immature political economies. Consequently, the deployment of foreign aid to revive collapsed economies runs the risk of perpetuating rent-seeking and thereby postponing essential economic restructuring. This chapter compares the varied impacts of aid on the development trajectories of Mauritania, Kenya, and Mozambique. It argues that successful aid deployment requires: recognition that aid modalities differentiate aid's effectiveness; stronger public accountability; and the construction of a cohesive pro-reform political constituency. The paper proposes a dual track strategy as a politically practical means of deploying geopolitical rent to restructure distorted economies.
Ryan Saylor
- Published in print:
- 2014
- Published Online:
- May 2014
- ISBN:
- 9780199364954
- eISBN:
- 9780199364978
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199364954.003.0009
- Subject:
- Political Science, Comparative Politics
This chapter reviews how commodity booms and coalitional politics produced marked state building divergence among six Latin American and African countries. Coalitional politics determined whether ...
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This chapter reviews how commodity booms and coalitional politics produced marked state building divergence among six Latin American and African countries. Coalitional politics determined whether natural resource wealth was a blessing or curse. This finding recasts the conventional wisdom on the “resource curse,” which views certain types of commodities as inherently perilous. This book indicates that, even in the context of weak institutions, certain types of political coalitions can help countries avert the pitfalls associated with resource wealth and instead harness it for developmental gains. Coalition building strategies, not commodity type, may be why a resource “curse” takes hold in some countries but not others. The book concludes by describing how these findings have practical implications for the management of natural resource wealth in the developing world.Less
This chapter reviews how commodity booms and coalitional politics produced marked state building divergence among six Latin American and African countries. Coalitional politics determined whether natural resource wealth was a blessing or curse. This finding recasts the conventional wisdom on the “resource curse,” which views certain types of commodities as inherently perilous. This book indicates that, even in the context of weak institutions, certain types of political coalitions can help countries avert the pitfalls associated with resource wealth and instead harness it for developmental gains. Coalition building strategies, not commodity type, may be why a resource “curse” takes hold in some countries but not others. The book concludes by describing how these findings have practical implications for the management of natural resource wealth in the developing world.
Amany El-Anshasy, Kamiar Mohaddes, and Jeffrey B. Nugent
- Published in print:
- 2019
- Published Online:
- July 2019
- ISBN:
- 9780198822226
- eISBN:
- 9780191861208
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198822226.003.0003
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter examines the long-run effects of oil revenue and its volatility on economic growth, as well as the role of institutions in this relationship. We collect annual and monthly data on 17 ...
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This chapter examines the long-run effects of oil revenue and its volatility on economic growth, as well as the role of institutions in this relationship. We collect annual and monthly data on 17 major oil producers between 1961 and 2013, and use the panel autoregressive distributed lag (ARDL) approach as well as its cross-sectionally augmented version (CS-ARDL) for estimation. Therefore, in contrast to earlier literature on the resource curse, we take into account all three key features of the panel: dynamics, heterogeneity, and cross-sectional dependence. The results suggest that: (i) oil revenue volatility has a significant negative effect on output growth; (ii) a higher growth rate of oil revenue significantly raises economic growth; and (iii) better fiscal policy can offset some of the negative effects of oil revenue volatility. We therefore argue that volatility in oil revenues combined with poor governmental responses to this volatility drives the resource curse paradox.Less
This chapter examines the long-run effects of oil revenue and its volatility on economic growth, as well as the role of institutions in this relationship. We collect annual and monthly data on 17 major oil producers between 1961 and 2013, and use the panel autoregressive distributed lag (ARDL) approach as well as its cross-sectionally augmented version (CS-ARDL) for estimation. Therefore, in contrast to earlier literature on the resource curse, we take into account all three key features of the panel: dynamics, heterogeneity, and cross-sectional dependence. The results suggest that: (i) oil revenue volatility has a significant negative effect on output growth; (ii) a higher growth rate of oil revenue significantly raises economic growth; and (iii) better fiscal policy can offset some of the negative effects of oil revenue volatility. We therefore argue that volatility in oil revenues combined with poor governmental responses to this volatility drives the resource curse paradox.
Ryan Saylor
- Published in print:
- 2014
- Published Online:
- May 2014
- ISBN:
- 9780199364954
- eISBN:
- 9780199364978
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199364954.001.0001
- Subject:
- Political Science, Comparative Politics
This book argues that commodity booms and coalitional politics are central to understanding the state building variation within and across Latin America and Africa. It shows how resource booms can ...
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This book argues that commodity booms and coalitional politics are central to understanding the state building variation within and across Latin America and Africa. It shows how resource booms can trigger the provision of new public goods and institutional strengthening and thus help countries expand their state capacity. But these possibilities hinge on coalitional politics, as seen through six cases. Countries ruled by export-oriented coalitions (Argentina, Chile, and Mauritius) expanded their state capacity as a direct result of commodity booms. But countries in which exporters were politically marginalized (Colombia, Ghana, and Nigeria) missed analogous state building opportunities because ruling coalitions preyed upon export wealth, rather than promoting export interests via state building. The coalitional basis of these divergent outcomes suggests that, contrary to the prevailing belief in a resource curse, natural resource wealth does not necessarily dispose countries to low state capacity. Instead, export-oriented coalitions can harness boom times for developmental gains, even in the context of weak institutions. This finding warrants reappraising some widespread presumptions about the relationship between resource wealth and state building, as well as the public policies that are commonly proposed for developing countries to manage their natural resource wealth.Less
This book argues that commodity booms and coalitional politics are central to understanding the state building variation within and across Latin America and Africa. It shows how resource booms can trigger the provision of new public goods and institutional strengthening and thus help countries expand their state capacity. But these possibilities hinge on coalitional politics, as seen through six cases. Countries ruled by export-oriented coalitions (Argentina, Chile, and Mauritius) expanded their state capacity as a direct result of commodity booms. But countries in which exporters were politically marginalized (Colombia, Ghana, and Nigeria) missed analogous state building opportunities because ruling coalitions preyed upon export wealth, rather than promoting export interests via state building. The coalitional basis of these divergent outcomes suggests that, contrary to the prevailing belief in a resource curse, natural resource wealth does not necessarily dispose countries to low state capacity. Instead, export-oriented coalitions can harness boom times for developmental gains, even in the context of weak institutions. This finding warrants reappraising some widespread presumptions about the relationship between resource wealth and state building, as well as the public policies that are commonly proposed for developing countries to manage their natural resource wealth.
Gustavo A. Flores-Macias
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199891658
- eISBN:
- 9780199933402
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199891658.001.0001
- Subject:
- Political Science, Political Economy
Between 1998 and 2010, an unprecedented wave of left-of-center candidates reached power in Latin America. In spite of a shared concern for social inequality and opposition to the Washington ...
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Between 1998 and 2010, an unprecedented wave of left-of-center candidates reached power in Latin America. In spite of a shared concern for social inequality and opposition to the Washington Consensus, their governments pursued dramatically different economic policies. Why did some governments reverse neoliberal economic policies amid the supremacy of market orthodoxy? Why did others embrace market orthodoxy after denouncing it for decades from the opposition? Why were nationalizations, price controls, and trade barriers implemented in Argentina, Bolivia, Ecuador, and Venezuela, but not in Brazil, Chile, Nicaragua, and Uruguay? More generally, what are the conditions that make the initiation and maintenance of economic reforms likely? In answering these questions, this book conducts a theoretical and empirical study of economic reforms in Latin America. It takes stock of the left’s economic transformations in the region and challenges widely held views that resource dependence, economic crises, or strong executives are responsible for them. Instead, it argues that party systems are crucial in explaining reform: when institutionalized, party systems are likely to preserve the prevailing market orthodoxy; when in disarray, they are conducive to drastic economic changes. Marshalling evidence drawn from ten countries and case studies of the governments of Ricardo Lagos in Chile, Lula in Brazil, and Hugo Chávez in Venezuela, this study not only sheds light on one of the most puzzling aspects of contemporary Latin America, but also advances our general understanding of the left as a political ideology, economic reforms, and party systems beyond the region.Less
Between 1998 and 2010, an unprecedented wave of left-of-center candidates reached power in Latin America. In spite of a shared concern for social inequality and opposition to the Washington Consensus, their governments pursued dramatically different economic policies. Why did some governments reverse neoliberal economic policies amid the supremacy of market orthodoxy? Why did others embrace market orthodoxy after denouncing it for decades from the opposition? Why were nationalizations, price controls, and trade barriers implemented in Argentina, Bolivia, Ecuador, and Venezuela, but not in Brazil, Chile, Nicaragua, and Uruguay? More generally, what are the conditions that make the initiation and maintenance of economic reforms likely? In answering these questions, this book conducts a theoretical and empirical study of economic reforms in Latin America. It takes stock of the left’s economic transformations in the region and challenges widely held views that resource dependence, economic crises, or strong executives are responsible for them. Instead, it argues that party systems are crucial in explaining reform: when institutionalized, party systems are likely to preserve the prevailing market orthodoxy; when in disarray, they are conducive to drastic economic changes. Marshalling evidence drawn from ten countries and case studies of the governments of Ricardo Lagos in Chile, Lula in Brazil, and Hugo Chávez in Venezuela, this study not only sheds light on one of the most puzzling aspects of contemporary Latin America, but also advances our general understanding of the left as a political ideology, economic reforms, and party systems beyond the region.
Charles Cater
- Published in print:
- 2014
- Published Online:
- April 2014
- ISBN:
- 9780199671656
- eISBN:
- 9780191751127
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199671656.003.0024
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Transparency-based policies are currently the principal approach to mitigating the resource curse in developing countries, particularly with respect to corruption and conflict. Policy making often ...
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Transparency-based policies are currently the principal approach to mitigating the resource curse in developing countries, particularly with respect to corruption and conflict. Policy making often reflects conventional assumptions about the nature of the problem: the traditional financial opacity of the extractive industries enables illicit appropriation of resource rents, while correlations between natural resource dependency and intrastate conflict are explained through reference to combatant financing mechanisms. Accordingly, transparency has been widely adopted as an integral policy component, whether through financial regulation, commodity tracking, or resource interdiction. Policy making has also been influenced by political and economic interests among states, international organizations, and transnational corporations. The available evidence suggests there is sufficient reason to critically re-examine the assumption that increased economic transparency necessarily translates into enhanced political accountability in developing countries. The mixed track record of transparency-based policies suggests alternative and complementary approaches to escape the resource curse should also be considered.Less
Transparency-based policies are currently the principal approach to mitigating the resource curse in developing countries, particularly with respect to corruption and conflict. Policy making often reflects conventional assumptions about the nature of the problem: the traditional financial opacity of the extractive industries enables illicit appropriation of resource rents, while correlations between natural resource dependency and intrastate conflict are explained through reference to combatant financing mechanisms. Accordingly, transparency has been widely adopted as an integral policy component, whether through financial regulation, commodity tracking, or resource interdiction. Policy making has also been influenced by political and economic interests among states, international organizations, and transnational corporations. The available evidence suggests there is sufficient reason to critically re-examine the assumption that increased economic transparency necessarily translates into enhanced political accountability in developing countries. The mixed track record of transparency-based policies suggests alternative and complementary approaches to escape the resource curse should also be considered.
Anthony Bebbington, Abdul-Gafaru Abdulai, Denise Humphreys Bebbington, Marja Hinfelaar, Cynthia A. Sanborn, Jessica Achberger, Celina Grisi Huber, Verónica Hurtado, Tania Ramírez, and Scott D. Odell
- Published in print:
- 2018
- Published Online:
- July 2018
- ISBN:
- 9780198820932
- eISBN:
- 9780191860478
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198820932.003.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter develops a conceptual framework for understanding the politics of extractive industry governance. Building from the work of Karl, Ross, Watts, and others, and their efforts to understand ...
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This chapter develops a conceptual framework for understanding the politics of extractive industry governance. Building from the work of Karl, Ross, Watts, and others, and their efforts to understand the political drivers and consequences of the resource curse, the chapter proposes an approach that also engages with political settlements theory, addressing the political implications of the materiality of natural resources and the politics of ideas surrounding resource governance. The chapter then introduces a programme of cross-country, comparative research designed to address the relationships among political settlements, extractive industry, and patterns of development; describes the questions that guided this research; and presents the methods used.Less
This chapter develops a conceptual framework for understanding the politics of extractive industry governance. Building from the work of Karl, Ross, Watts, and others, and their efforts to understand the political drivers and consequences of the resource curse, the chapter proposes an approach that also engages with political settlements theory, addressing the political implications of the materiality of natural resources and the politics of ideas surrounding resource governance. The chapter then introduces a programme of cross-country, comparative research designed to address the relationships among political settlements, extractive industry, and patterns of development; describes the questions that guided this research; and presents the methods used.
Leif Wenar
- Published in print:
- 2018
- Published Online:
- September 2018
- ISBN:
- 9780190905651
- eISBN:
- 9780190905682
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190905651.003.0002
- Subject:
- Philosophy, Political Philosophy
Article 1 of both of the major human rights covenants declares that the people of each country “shall freely dispose of their natural wealth and resources.” This chapter considers what conditions ...
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Article 1 of both of the major human rights covenants declares that the people of each country “shall freely dispose of their natural wealth and resources.” This chapter considers what conditions would have to hold for the people of a country to exercise this right—and why public accountability over natural resources is the only realistic solution to the “resource curse,” which makes resource-rich countries more prone to authoritarianism, civil conflict, and large-scale corruption. It also discusses why cosmopolitans, who have often been highly critical of prerogatives of state sovereignty, have good reason to endorse popular sovereignty over natural resources. Those who hope for more cosmopolitan institutions should see strengthening popular resource sovereignty as the most responsible path to achieving their own goals.Less
Article 1 of both of the major human rights covenants declares that the people of each country “shall freely dispose of their natural wealth and resources.” This chapter considers what conditions would have to hold for the people of a country to exercise this right—and why public accountability over natural resources is the only realistic solution to the “resource curse,” which makes resource-rich countries more prone to authoritarianism, civil conflict, and large-scale corruption. It also discusses why cosmopolitans, who have often been highly critical of prerogatives of state sovereignty, have good reason to endorse popular sovereignty over natural resources. Those who hope for more cosmopolitan institutions should see strengthening popular resource sovereignty as the most responsible path to achieving their own goals.
Michael Herb
- Published in print:
- 2014
- Published Online:
- August 2016
- ISBN:
- 9780801453366
- eISBN:
- 9780801454691
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801453366.003.0001
- Subject:
- Political Science, Middle Eastern Politics
This book examines the divergent paths followed by Kuwait and the United Arab Emirates (UAE): whereas the UAE, led by Dubai, has diversified its economy beyond oil, the Kuwaiti economy remains almost ...
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This book examines the divergent paths followed by Kuwait and the United Arab Emirates (UAE): whereas the UAE, led by Dubai, has diversified its economy beyond oil, the Kuwaiti economy remains almost entirely dependent on oil. It analyzes the distinctive politics and economics of the Gulf monarchies by focusing on how the often-competing interests of rulers, capitalists, citizens, and expatriates take shape in Gulf states with more or less political participation and in those with more or less oil rent per capita. It describes two groups of Gulf rentiers: extreme rentiers (Kuwait, UAE, and Qatar) and middling rentiers (Saudi Arabia, Oman, and Bahrain). It also considers the Kuwaiti National Assembly and how it gives the citizen majority a voice in determining economic policy. Finally, it compares the Dubai model and the Kuwait model of economic development and their influence in the Gulf. In the remainder of this chapter, the literature on the resource curse is discussed, with particular emphasis on how it deals with class politics in really rich rentiers.Less
This book examines the divergent paths followed by Kuwait and the United Arab Emirates (UAE): whereas the UAE, led by Dubai, has diversified its economy beyond oil, the Kuwaiti economy remains almost entirely dependent on oil. It analyzes the distinctive politics and economics of the Gulf monarchies by focusing on how the often-competing interests of rulers, capitalists, citizens, and expatriates take shape in Gulf states with more or less political participation and in those with more or less oil rent per capita. It describes two groups of Gulf rentiers: extreme rentiers (Kuwait, UAE, and Qatar) and middling rentiers (Saudi Arabia, Oman, and Bahrain). It also considers the Kuwaiti National Assembly and how it gives the citizen majority a voice in determining economic policy. Finally, it compares the Dubai model and the Kuwait model of economic development and their influence in the Gulf. In the remainder of this chapter, the literature on the resource curse is discussed, with particular emphasis on how it deals with class politics in really rich rentiers.
Raphael Espinoza, Ghada Fayad, and Ananthakrishnan Prasad
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199683796
- eISBN:
- 9780191763373
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683796.003.0002
- Subject:
- Economics and Finance, Macro- and Monetary Economics
GDP growth in the GCC has been considerably higher than in advanced economies and other oil exporters outside the region since 1986. The chapter shows that the GCC countries have swiftly accumulated ...
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GDP growth in the GCC has been considerably higher than in advanced economies and other oil exporters outside the region since 1986. The chapter shows that the GCC countries have swiftly accumulated large stocks of physical capital but the population increase and the shift away from oil meant that capital intensity remained roughly constant or even decreased. A growth accounting exercise also suggests that total factor productivity growth has been disappointing. One potential explanation is that the kind of capital that has been accumulated in the region (aircraft, computer equipment, electrical equipment) is not fully productive because the labor force is not educated enough. The paper also discusses the lessons from the empirical growth literature for the GCC. The poor quality of institutions and the large size of government consumption, both of which are possible symptoms of a resource curse, could explain the disappointing TFP growth.Less
GDP growth in the GCC has been considerably higher than in advanced economies and other oil exporters outside the region since 1986. The chapter shows that the GCC countries have swiftly accumulated large stocks of physical capital but the population increase and the shift away from oil meant that capital intensity remained roughly constant or even decreased. A growth accounting exercise also suggests that total factor productivity growth has been disappointing. One potential explanation is that the kind of capital that has been accumulated in the region (aircraft, computer equipment, electrical equipment) is not fully productive because the labor force is not educated enough. The paper also discusses the lessons from the empirical growth literature for the GCC. The poor quality of institutions and the large size of government consumption, both of which are possible symptoms of a resource curse, could explain the disappointing TFP growth.
Philippe Le Billon
- Published in print:
- 2014
- Published Online:
- December 2014
- ISBN:
- 9780199333462
- eISBN:
- 9780190235673
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199333462.003.0001
- Subject:
- Political Science, Conflict Politics and Policy
This chapter presents the major arguments, approach and structure of the book.
This chapter presents the major arguments, approach and structure of the book.
Stephen Emerson and Hussein Solomon
- Published in print:
- 2018
- Published Online:
- September 2018
- ISBN:
- 9781526122735
- eISBN:
- 9781526136190
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9781526122735.003.0008
- Subject:
- Political Science, International Relations and Politics
Resource conflict and environmental degradation are in reality two-sides of the same security challenge coin. Both address the issue of natural resource abundance and scarcity and how societies deal ...
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Resource conflict and environmental degradation are in reality two-sides of the same security challenge coin. Both address the issue of natural resource abundance and scarcity and how societies deal with these challenges and their implications, but from vastly different perspectives. While the first addresses access and control over existing natural resources in terms of resource competition, the second addresses the environmental impact of declining or the misuse of resources. Regardless of the perspective, however, both present a serious threat to African peace and stability through their ability to generate and sustain violent conflict, fuel corruption or undermine governance. Moreover, some of these types of conflicts are the most difficult to resolve given the life or death nature of the stakes involved for individuals and entire communities.Less
Resource conflict and environmental degradation are in reality two-sides of the same security challenge coin. Both address the issue of natural resource abundance and scarcity and how societies deal with these challenges and their implications, but from vastly different perspectives. While the first addresses access and control over existing natural resources in terms of resource competition, the second addresses the environmental impact of declining or the misuse of resources. Regardless of the perspective, however, both present a serious threat to African peace and stability through their ability to generate and sustain violent conflict, fuel corruption or undermine governance. Moreover, some of these types of conflicts are the most difficult to resolve given the life or death nature of the stakes involved for individuals and entire communities.
Sarah M. Brooks and Marcus J. Kurtz
- Published in print:
- 2016
- Published Online:
- June 2016
- ISBN:
- 9780190462888
- eISBN:
- 9780190492885
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190462888.003.0002
- Subject:
- Political Science, Comparative Politics, Political Economy
Brazil stands out as an emblematic exception to the "curse" of natural resources (especially oil)-in both its political and economic variants. Despite a history of abundance of, and reliance upon, ...
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Brazil stands out as an emblematic exception to the "curse" of natural resources (especially oil)-in both its political and economic variants. Despite a history of abundance of, and reliance upon, immense mineral wealth, it has for more than a half century undergone a surprisingly robust and broad-based industrial expansion, while in the contemporary era even improving sharply its ability to discover, extract, and commercialize petroleum products. This exceptional conjuncture is examined in the context of two legacies of Brazil's developmental state, namely, investments in human capital and industrial capacity. State-led industrialization, whatever its other fiscal and macroeconomic consequences, provided a foundation for the transformation of oil into a developmental blessing, rather than a curse.Less
Brazil stands out as an emblematic exception to the "curse" of natural resources (especially oil)-in both its political and economic variants. Despite a history of abundance of, and reliance upon, immense mineral wealth, it has for more than a half century undergone a surprisingly robust and broad-based industrial expansion, while in the contemporary era even improving sharply its ability to discover, extract, and commercialize petroleum products. This exceptional conjuncture is examined in the context of two legacies of Brazil's developmental state, namely, investments in human capital and industrial capacity. State-led industrialization, whatever its other fiscal and macroeconomic consequences, provided a foundation for the transformation of oil into a developmental blessing, rather than a curse.
Jérémie Gilbert
- Published in print:
- 2018
- Published Online:
- November 2018
- ISBN:
- 9780198795667
- eISBN:
- 9780191836978
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198795667.003.0001
- Subject:
- Law, Public International Law, Human Rights and Immigration
The chapter explains the relationship between the issue of natural resources management and international human rights law (IHRL), and places it into context with regards to the book. It examines how ...
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The chapter explains the relationship between the issue of natural resources management and international human rights law (IHRL), and places it into context with regards to the book. It examines how the management of natural resources is linked to broad issues of economic development, peace, and security, as well as the political, economic, social, and cultural rights of individuals and communities. The introduction also establishes the analytical framework of the book by adopting a rights-based approach to natural resources management and its regulation, and how these activities related to the structural allocation of wealth and power. Overall, it looks at the interaction between IHRL and natural resources based on six main concerns: sovereignty, property, governance, access to sources of livelihood/food production, cultural and natural heritage, and conservation.Less
The chapter explains the relationship between the issue of natural resources management and international human rights law (IHRL), and places it into context with regards to the book. It examines how the management of natural resources is linked to broad issues of economic development, peace, and security, as well as the political, economic, social, and cultural rights of individuals and communities. The introduction also establishes the analytical framework of the book by adopting a rights-based approach to natural resources management and its regulation, and how these activities related to the structural allocation of wealth and power. Overall, it looks at the interaction between IHRL and natural resources based on six main concerns: sovereignty, property, governance, access to sources of livelihood/food production, cultural and natural heritage, and conservation.
Gustavo Flores-Macías
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199891658
- eISBN:
- 9780199933402
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199891658.003.0004
- Subject:
- Political Science, Political Economy
Chapter 4 discusses the role of the party system in explaining statist economic reforms in Venezuela during Hugo Chávez’s presidency. It argues that the disarray of the party system during the late ...
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Chapter 4 discusses the role of the party system in explaining statist economic reforms in Venezuela during Hugo Chávez’s presidency. It argues that the disarray of the party system during the late 1980s and early 1990s favored the rise of outsider, anti-system candidates and steered decision making away from Congress, which undermined the opposition’s ability to shape the president’s economic reforms. Once these reforms were undertaken, oil revenues allowed Chávez to sustain statist policies over time. Although sudden economic crises were absent in the years leading to Chávez’s election in 1998, the gradual deterioration of economic conditions contributed to the weakening of the party system. Other factors, including organized labor, the depth of neoliberal reforms, and the weakness that characterized the executive at the time Chávez reached power did not play a significant role in explaining statist reforms in Venezuela.Less
Chapter 4 discusses the role of the party system in explaining statist economic reforms in Venezuela during Hugo Chávez’s presidency. It argues that the disarray of the party system during the late 1980s and early 1990s favored the rise of outsider, anti-system candidates and steered decision making away from Congress, which undermined the opposition’s ability to shape the president’s economic reforms. Once these reforms were undertaken, oil revenues allowed Chávez to sustain statist policies over time. Although sudden economic crises were absent in the years leading to Chávez’s election in 1998, the gradual deterioration of economic conditions contributed to the weakening of the party system. Other factors, including organized labor, the depth of neoliberal reforms, and the weakness that characterized the executive at the time Chávez reached power did not play a significant role in explaining statist reforms in Venezuela.
Raimundo Soto
- Published in print:
- 2019
- Published Online:
- July 2019
- ISBN:
- 9780198822226
- eISBN:
- 9780191861208
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198822226.003.0012
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The UAE has seemingly escaped “the natural resource curse”: it is one of the richest countries in the world and ranks comparatively highly on business environment, infrastructure, and institutional ...
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The UAE has seemingly escaped “the natural resource curse”: it is one of the richest countries in the world and ranks comparatively highly on business environment, infrastructure, and institutional development. Symptoms of the curse can nevertheless be found in the very low growth in labor productivity, massive public sector overemployment, and the inability to counteract instability induced by oil price cycles. This chapter shows that fiscal policy is highly ineffective as a countercyclical tool due to the absence of income and ad-valorem taxes. Stabilizing instruments—such as open-budgeting procedures or fiscal rules—are notoriously absent. Why would a country design its fiscal, monetary, and exchange rate policies so that they allow for high levels of pro-cyclicality, thereby hampering efficiency and long-run growth? A political economy explanation is developed whereby weak fiscal institutions are an agreed-upon mechanism to secure political stability and transfer oil wealth among emiratis and to future generations.Less
The UAE has seemingly escaped “the natural resource curse”: it is one of the richest countries in the world and ranks comparatively highly on business environment, infrastructure, and institutional development. Symptoms of the curse can nevertheless be found in the very low growth in labor productivity, massive public sector overemployment, and the inability to counteract instability induced by oil price cycles. This chapter shows that fiscal policy is highly ineffective as a countercyclical tool due to the absence of income and ad-valorem taxes. Stabilizing instruments—such as open-budgeting procedures or fiscal rules—are notoriously absent. Why would a country design its fiscal, monetary, and exchange rate policies so that they allow for high levels of pro-cyclicality, thereby hampering efficiency and long-run growth? A political economy explanation is developed whereby weak fiscal institutions are an agreed-upon mechanism to secure political stability and transfer oil wealth among emiratis and to future generations.
