scholarly journals Natural Resources and Socio-Economic Progress

2014 ◽  
pp. 168-186
Author(s):  
L. M. Kapitsa
Keyword(s):  
Natural Resources ◽  
Resource Curse ◽  
Dutch Disease ◽  
Economic Diversification ◽  
New Approaches ◽  
Economic Progress ◽  
Rich Countries ◽  
Disease Specific

The article reviews international debates on development problems of the resource-based economies. It draws atten tion to causes and mechanisms of the so-called "resource curse" and symptoms of systemic breakdowns and stagnant phenomena in resource-based economies named "Dutch disease". Specific attention is given to the role of national elites and institutions in the emergence of "Dutch disease", preservation of economic backwardness and/or de-industrialization of resource-rich countries. The author also considers new approaches to resolving the problem of'resource-curse", in particular, return to traditional instruments of economic diversification as industrialization and protectionism.

The Role of Natural Resources

2019 ◽  
pp. 39-66
Author(s):  
Richard Pomfret
Keyword(s):  
Natural Resources ◽  
Central Asia ◽  
Oil And Gas ◽  
Resource Curse ◽  
First Century ◽  
Economic Diversification ◽  
Commodity Export ◽  
Twenty First Century

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.

Has the Sovereign Wealth Fund of Azerbaijan (SOFAZ) Been Able to Promote Economic Diversification?

2013 ◽  
Author(s):  
Vahid Yücesoy
Keyword(s):  
Fossil Fuels ◽  
Dutch Disease ◽  
Future Generations ◽  
Direct Control ◽  
Economic Diversification ◽  
Sovereign Wealth Funds ◽  
Sovereign Wealth Fund ◽  
Rentier States ◽  
Oil Revenues ◽  
Rich Countries

Oil-rich countries have oftentimes been confronted with the challenge of diversifying their economies away from oil dependence given the exhaustible nature of these fossil fuels. Investing in sovereign wealth funds has been one of the most ubiquitous ways of preparing for the post-oil period. Investing in sovereign wealth funds rather than directly injecting the oil revenues in the economy not only precludes the outbreak of the Dutch Disease (which is known for giving rise to an exchange rate appreciation, crowding out non-oil industries and keeping the economy reliant on oil), but it also saves for future generations. Yet, in the case of Azerbaijan, the Sovereign Wealth Fund of Azerbaijan (SOFAZ), founded in 1999, has only increased this reliance on oil. Using the rentier states theoretical framework, this paper will argue that the direct control over SOFAZ exercised by the president and the lack of consultation with the NGOs have made corruption easier, making the task of economic diversification more difficult. This has been possible because through corruption the president has often resorted to oil money to buy peace rather than invest it in economic diversification. As a result, since the foundation of SOFAZ, the country is more reliant, not less, on oil.   Full text available at: https://doi.org/10.22215/rera.v8i1.223  

Popular Resource Sovereignty

2018 ◽  
Author(s):  
Leif Wenar
Keyword(s):  
Human Rights ◽  
Natural Resources ◽  
Large Scale ◽  
Good Reason ◽  
Resource Curse ◽  
Civil Conflict ◽  
Popular Sovereignty ◽  
State Sovereignty ◽  
The People ◽  
Rich Countries

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.

Conclusion

2017 ◽  
Author(s):  
Jonathon W. Moses ◽  
Bjørn Letnes
Keyword(s):  
Natural Resources ◽  
Resource Curse ◽  
Specific Model ◽  
Dutch Disease ◽  
Political Conditions

There is broad recognition that Norway manages its natural resources successfully. Policymakers are flocking to Norway to try to learn the lessons provided by the Norwegian model. This book describes the main challenges facing policymakers in resource-rich states (e.g., Dutch Disease, Resource Curse, Paradox of Plenty), and the sort of institutional solutions and policies that are available to them. We explain why the Norwegian authorities chose the solutions they did, and how these choices have changed over the years, in response to changing market and political conditions. The result is a book that offers insight and understanding as to why the country made the choices it did, rather than providing a specific model for export.

scholarly journals Resource Curse: Experience Study on Economic Development of Petroleum Countries

2021 ◽  
Vol 292 ◽  
pp. 02057
Author(s):  
Yuan Yuan
Keyword(s):  
Industrial Structure ◽  
Empirical Studies ◽  
Resource Curse ◽  
Dutch Disease ◽  
Balanced Development ◽  
Growth Status ◽  
Oil Resources ◽  
National Economic ◽  
Petroleum Resources ◽  
Rich Countries

This paper studies the causes of “resource curse” from the perspective of “national utilization of petroleum resources” and uses the samples of eight typical oil resource-rich countries to study their national economic growth status. Empirical studies show that the resource curse effect of most countries is caused by “Dutch disease". Relying too much on the development of the oil resources industry, with the unreasonable industrial structure, the excessive export of oil resources, and the “extrusion effect” of production factors are the reasons that delay the technological innovation and development of the industry and inhibit the balanced development of other industries.

scholarly journals Is the Resource Curse Thesis Affect Only Least Developed Countries? Examples from Resource-Rich Developed Countries

2021 ◽  
Author(s):  
Harun Bal ◽  
Berk Palandökenlier
Keyword(s):  
Natural Resources ◽  
Resource Curse ◽  
Economic Recession ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease ◽  
Least Developed Countries ◽  
Negative Effects ◽  
Developed Country ◽  
Indirect Transmission

Whether the Dutch Disease thesis, which is one of the best-known economic explanations on this subject, which puts forward the thesis that countries rich in natural resources can have negative effects on long-term economic growth, directly or indirectly, depending on the way they are used, is valid or not. tried to be demonstrated. The Dutch disease thesis is one of the main explanations for resource misfortune, emphasizing the negative effects of resource abundance on the national economy in countries with rich resource endowments and pointing to a paradox that economic conditions will be better in countries that do not have relatively little (or scarce) natural resources. is happening. Therefore, in our study, it is aimed to investigate whether resource richness causes an economic recession or not, especially for developed countries by considering indirect transmission channels. In this context, 11 developed countries such as Netherlands, Norway, Ireland, Germany, New Zealand, the United States of America, Canada, Australia, Poland, the United Kingdom, and Denmark, between 1990 and 2019, are based on the experiences of developed countries, which are especially rich in different sources of Dutch Disease syndrome. The country has been researched with static and dynamic panel analysis methods. As a result of the estimation, findings were found that the Dutch Disease was partially valid in terms of developed country samples throughout the sample period considered.

Structural Transformation and Economic Diversification in West African Countries

2016 ◽  
Vol 1 (1) ◽  
pp. 3
Author(s):  
Mesut YILMAZ ◽  
Yessengali OSKENBAYEV
Keyword(s):  
Natural Resources ◽  
West African ◽  
Dutch Disease ◽  
Trade Theory ◽  
African Countries ◽  
Economic Diversification ◽  
Windfall Gain ◽  
New Concepts ◽  
History Of ◽  
Set Up

<p>In the history of modern trade theory, the capitalized countries set up ridiculous pretensions as specialization for being an industrialized country. Thus, well-know words according to their idea is “Africa has a strong comparative advantage in natural resources, so, they should specialize on them.” But today, new theories on over-specialization are to keep away commodity dependent countries from specialization. As mentioned above, there are many new concepts which are not available for Africa continent. In this article, new concepts such as Natural Curse Arguments (paradox of plenty), Dutch Disease, Immiserising Growth, windfall gain argument and over-specialization were discussed.</p>

scholarly journals Independence of Central Banks in Commodity Economies

2016 ◽  
pp. 6-25 ◽  
Author(s):  
Viktor Koziuk
Keyword(s):  
Resource Curse ◽  
Central Banks ◽  
Political Regime ◽  
The Political ◽  
General Tendency ◽  
Low Degree ◽  
Multivariable Regression ◽  
Rich Countries ◽  
The Impact

This article introduces the hypothesis that resource-rich countries display a low degree of central bank independence (CBI). This hypothesis is proven based on multivariable regression, but the influence of resource factors is not considered strong enough compared with previous inflationary experience and the characteristics of the political regime. It stresses that the impact of the commodity wealth factor on CBI choice is direct (through the share of commodity exports in total export) and indirect through the lower level of democracy in commodities countries that feature more dependent central banks. Also, this hypothesis is proven based on the grouping of countries. Such grouping shows that despite a general tendency of CBI increase in the world, a group of commodity exporting countries experiencing a substantially lower level of mean GMT-index, ECWN-index, and transparency-index resulted in lower CBI compared with groups of emerging markets and developing countries. Explaining these phenomena is rooted in features of institutional distortions in commodity economies, the specific structure of interventionist policy to overcome a "resource curse", and the specific role of the exchange rate and FX reserves in intertemporal macroeconomic policy.

scholarly journals The Role of Governance and International Norms in Managing Natural Resources

2018 ◽  
Author(s):  
James Cust
Keyword(s):  
Natural Resources ◽  
Fossil Fuels ◽  
Commodity Prices ◽  
Decision Makers ◽  
Checks And Balances ◽  
Resource Wealth ◽  
Causal Impact ◽  
Rich Countries ◽  
Natural Resource Wealth

The governance of natural resource wealth is considered to constitute a key determinant in whether the extraction of natural resources proves to be a blessing or a curse. In response to this challenge, a variety of international initiatives have emerged to codify successful policies pursued by countries, and promote global norms and best practices to guide decision-makers. These initiatives, such as the Extractives Industry Transparency Initiative, have seen success in spreading and embedding governance norms, ranging across revenue transparency, contract disclosure, and the creation of instruments such as resource funds and building institutions for checks and balances. However, evidence for causal impact remains weak and sometimes limited to anecdotal cases. The end of the super-cycle of commodity prices, and the prospect of permanently lower prices for fossil fuels, creates new challenges for resource-rich countries but may also allow space and time for reflection, lesson-learning and improvements in governance.

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