Challenges in development and globalization popular books report browse more videos. Since emerging from decades of conflict in 2002, angola has been growing at a scorching doubledigit rate, led by its oil industry. Developing governance and investment frameworks to leverage the bene ts of energy development for rural prosperity. The resource curse or dutch disease tries to explain why countries that are richer in natural resources are poorer, have less economic growth and are less democratic. The impact is the outcome that determines whether resources has become a blessing or a curse stevens, 2003. There is a curious phenomenon that social scientists call the resource curse auty 1993.
But the nation remains beset with seemingly intractable problems. Section ii illustrates the relationship between resource richness, growth, and governance. Escaping the resource curse initiative for policy dialogue. Analytic narratives on economic growth princeton university press, 2003, pp. The wealth derived from natural resources can have a tremendous impact on the economics and politics of producing countries. For countries emerging from conflict and embarking on a crucial transition and reconstruction phase, the need to do so is even more critical. Evidence from botswana and the rest of the world atsushi iimi it is commonly accepted that resourcerich economies tend to fail in accelerating growth because of various adverse effects of abundant natural resources, such as dutch disease and. If youre looking for a free download links of escaping the resource curse initiative for policy dialogue pdf, epub, docx and torrent then this site is not for you. Escaping the natural resource curse and the dutch disease. Escaping the resource curse, macartan humphreys, jeffrey d. The study of the resource curse, and of governance and corruption more gener ally, began properly gaining traction as a. This brings into perspective the suggestion for a change of name from resource curse to resource impact.
Countries with large endowments of natural resources, such as oil and gas, often perform worse in terms of economic development and good governance than do countries with fewer resources. Escaping the resource curse lays out a path for radically improving the management of the worlds natural resources. Request pdf escaping the resource curse the abstract for this document is available on csa illumina. It takes a long look at the processes of oil production in a nation state, and how these processes can reduce potential incomes for the state, whether from royalties. Escaping the resource curse, by a variety of authors including joseph stiglitz and jeffrey d. Stiglitz resource curse is the term used to describe the failure of resourcerich countries to benefit from their natural wealth. It is commonly accepted that resourcerich economies tend to fail in accelerating growth because of various adverse effects of abundant natural resources, such as dutch disease and rent seeking. Thecursetome1thecursepdf free download ebook in pdf and epub.
An inventory of extension activities for the project escaping the resource curse. When used well, these resources can create greater prosperity for current and future. The dutch disease syndrome is only partly taken into account. This is a timely and important contribution to the debate on the socalled resource curse and how to avoid itespecially important in a time of concern about energy security and sustainable economic development. Determinate factors of the resource curse in colombia, norway, botswana, and venezuela introduction as shown in much of the literature on international development natural resource deposits do not usually bode well for either the positive economic or the politi. When and why norway caught up with and forged ahead of its neighbors abstract. The resource curse is therefore certainly a surprising empirical result showing a negative relationship between the wealth of natural resources and their economic growth torres et al. Perversely, many countries rich in natural resources are poorer and more miserable than countries that are less well endowed. Because a similar challenge faces other developing nations, lessons learned. Angola and the resource curse case harvard business school. Governance natural resources and post conflict peacebuilding. Countries with large endowments of natural resources, such as oil and gas, often do worse than their poorer neighbors. In the last quarter century, we have seen the surprising and sobering consequences of this wealth, producing what is now known as the resource curse. A survey of diagnoses and some prescriptions oil, minerals, and agricultural resources can bring great riches to those who possess them.
Abstract numerous studies have suggested that natural resource abundance is bad for development. Oil, corruption and the resource curse harvard university. Norways catching up with and forging ahead of its neighbors growth studies show, counter to intuition, that the discovery of a natural resource may be a curse rather than a blessing since resource rich countries grow slower than others. In turn, that could lead to more democratic and transparent decisionmaking. The global financial crisis and subsequent fall in state oil revenue drives a loanseeking. Proponents of the resource curse have paid less attention to the conditions that bring about or hinder positive institutional change in countries outside the oecd. The case of indonesia numerous studies have suggested that natural resource abundance is bad for development. Escaping the resource curse edited by macartan humphreys, jeffrey d. Policy brief 4 august 20 policy brief 4 august 204 escaping the resource curse in subsaharan africa escaping the resource curse in subsaharan africa 5 despite the downsides, the benefits from the extraction and use of natural resources are considerable. Extension inventory by jerry reenc reat est engineering and. Yet countries that are abundantly endowed with such natural resources often encounter pitfalls that interfere with the expected superior economic performance. In this context, indonesias rapid growth during the 1970s and 1980s seems remarkable. Paradoxically, despite the prospects of wealth and opportunity that accompany the discovery and extraction of. Macartan humphreys editor, jeffrey sachs editor, joseph stiglitz editor overview.
Escaping the resource curse isbn 9780231141963 pdf epub. Why was indonesia able to grow strongly and what are the implications of its experience for other resource abundant countries. Pedro argues that resource demand offers africas ore and oilrich countries an opportunity to secure more revenues for public purses and to create more jobs. While an extensive literature on the resource curse exists, few books attempt to tackle this issue by drawing on both theory and.
Several explanations for the resource curse have been offered in the literature. The resource curse the political and economic challenges of natural resource wealth nrgi reader march 2015 countries with nonrenewable resource wealth face both an opportunity and a challenge. The case of indonesia andrew rosser journal of contemporary asia. Download escaping the resource curse initiative for policy dialogue at columbia. But oil alone cannot explain norways growth, since sachs and warner 2001 show that resource gifts often reverse growth, making oil a curse, not a blessing. The contributors show that solutions to the resource curse do exist. The first explanation, sug gested by prebisch 1950 and singer 1950, is known as prebischsinger hypothesis. Escaping the resource curse 1 contents introduction macartan humphreys, jeffrey sachs and joseph stiglitz 4 section i. To view the abstract, click the abstract button above the document title.
By embedding transparency and ensuring accountability of naturalresource management, countries with potential, or already discovered mineral wealth can take great strides towards escaping the resource curse. Using the latest crosscountry data, this study empirically readdresses the question of whether resource abundance can contribute to growth. Escaping the resource curse in china pubmed central pmc. It finds that governance determines the extent to which. Escaping the resource curse initiative for policy dialogue at columbia. This resource curse, which is also referred to as the kuznets trap kuznets 1955, is depleting western chinas natural resources, accompanied by accelerating environmental degradation. Norways catching up with and forging ahead of its neighbors growth studies show, counter to intuition, that the discovery of a natural resource may be a curse rather than a blessing since resourcerich countries grow slower than others. Challenges in development and globalization humphreys, macartan, sachs, jeffrey d. Read pdf escaping the resource curse initiative for.
I argue that its rapid growth was not simply a matter of policy elites. Sachs, is an interesting look at the resource curse with special attention to oil. Further reproduction prohibited without permission. In the 1960s, norway lagged behind its scandinavian neighbors in the aggregate value of economic production per capita, as it had for decades. If indeed natural resource wealth leads to poorquality institutions in the first place there is of course little chance for. It is becoming increasingly clear that past policies have not provided the benefits they promised. Moreover, there is the possibility of contracting the dutch disease, which involves a rapid and substantial contraction of the traded goods sector. This is allencompassing and will harmonise the various theoretical strand within the literature.
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