scholarly journals THE MOTIVATIONAL EFFECT OF OIL EXPLORATION IN SOMALI AND THE HABITUAL AFRICAN RESOURCE CURSE

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Mahad Mohamed Sheik
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Resources ◽  
Industrial Development ◽  
Resource Curse ◽  
Empirical Literature ◽  
Regulatory Body ◽  
Oil Exploration ◽  
African Countries ◽  
Motivational Effect

Purpose: The abundance of natural resources is usually considered the blessing for the countries that own such resources. However, such wealth is often associated with poverty and a slower economic growth. This phenomenon is called the resource curse, and it shows that most countries that are rich in natural resources have markedly reduced economic growth and development, and it shows that the wealth of natural resources adversely affects their economies, although it is intuitively expected to be the opposite i.e. that such wealth would have a positive impact on the country’s economic development. The general objective of the study was to find out the motivational effect of oil exploration in Somali and the habitual African resource curse. Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps. Findings: The study found out that Oil resource exploration has led to progress in some developed economies such as Canada which was able to avoid the resource curse. This is because oil revenues helped Canada among other countries make investments in capital, build employment and grow. Other countries such as Russia and Japan have not been able to avoid the resource curse. African countries in general where the majority of oil producing nations are, have an inverse correlation between oil production and industrial development. Examples of African countries that have been affected by the resource curse are Nigeria, Angola, South Africa and Zimbabwe. Empirical results indicate that, Somalia motivation for oil exploration is for economic development. However, it has not been spared the resource curse because the presence of oil has led to civil wars and terrorisms as groups seek to control the areas with oil fields. In addition, Somali and Kenya have involved diplomatic warfare over oil reserves that are located in the Indian Ocean near their borders. Recommendations: The study recommends that the government should enact laws which will govern petroleum operations, as well as empowering the Somali Petroleum Authority,(SPA) which will act as a regulatory body overseeing oil and gas activity.

scholarly journals Teori Kutukan Sumber Daya Alam (Resource Curse) dalam Perspektif Ilmu Politik

2020 ◽  
Vol 12 (1) ◽  
pp. 24-40
Author(s):  
Ahmad Sholikin
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Resource Curse ◽  
Empirical Literature ◽  
Authoritarian Rule ◽  
Institutional Governance ◽  
Natural Resource Curse ◽  
Mineral Wealth ◽  
Determinants Of Corruption ◽  
The Impact

Overall, the empirical literature related to "Natural Resource Curse" can be divided into three main strands; first, which examines the impact of natural resources and economic growth. Literrature studies explain economic outcomes in countries rich in natural resources in part operate from a neoclassical / public choice or behaviorist perspective. The second literacy study; examine the impact of natural resources on democracy or democratic institutions. In one of his previous contributions, Ross (2001) not only discussed the mechanism and channel but also examined it empirically. Ross points out that natural resources in the form of oil and mineral wealth are negatively related to the size of democracy. He also found tentative support for three causal mechanisms connecting oil and authoritarian rule. Third empirical literature review; examines the impact of natural resources on institutional governance measures, such as corruption. Ades and Di Telia (1999), empirically and theoretically look for the determinants of corruption, the results include the impact of natural resources. Using the share of fuel and mineral exports in total exports, they invaded whether an increase in this section led to an increase in corruption in the 1980s and 1990s.

scholarly journals Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 18 (12) ◽  
pp. 6236
Author(s):  
Husam Rjoub ◽  
Chuka Uzoma Ifediora ◽  
Jamiu Adetola Odugbesan ◽  
Benneth Chiemelie Iloka ◽  
João Xavier Rita ◽  
...  
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Causal Effect ◽  
Sub Saharan Africa ◽  
Security Threats ◽  
African Countries ◽  
Significance Level ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

scholarly journals The role of diversity and tolerance in economic development

2021 ◽  
Author(s):  
Witold Kwasnicki
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Industrial Development ◽  
Evolutionary Process ◽  
Evolutionary Model ◽  
Industry Development ◽  
Radical Innovations ◽  
Long Run

AbstractThis paper presents an evolutionary model of industry development, and uses simulations to investigation the role of diversity and heterogeneity in firms’ behaviour, and hence industrial development. The simulations suggest that economic growth is increased with greater variety, in the sense of the evolutionary process approaching the equilibrium faster and also, in the long run, moving faster from one equilibrium to a new, more advanced, equilibrium. This occurs due to higher variety caused by a more tolerant environment, and due to the higher probability of emergence of radical innovations.

Asta-Ja Framework: A Peaceful Approach to Food, Water, Climate, and Environmental Security Coupled with Sustainable Economic Development and Social Inclusion in Nepal

2021 ◽  
Author(s):  
Durga D Poudel
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Human Resources ◽  
Natural Resources ◽  
Social Inclusion ◽  
Good Governance ◽  
Economic Transformation ◽  
Environmental Security ◽  
Development Framework ◽  
Sustainable Conservation

Sustainable conservation, development, and utilization of natural and human resources is necessary for accelerated economic growth and fast-paced socio-economic transformation of Nepal. Asta-Ja Framework, which is a theoretically grounded grassroots based peaceful and self-reliant planning and development approach, offers practical strategies for sustainable conservation and development of natural and human resources enhancing food, water, climate, and environmental security, accelerated economic growth, and socio-economic transformation of Nepal. Asta-Ja includes interconnected eight resources in Nepali letter, Ja, – Jal (water), Jamin (land), Jungle (forest), Jadibuti (medicinal and aromatic plants), Janashakti (manpower), Janawar (animal), Jarajuri (crop plants) and Jalabayu (climate). Asta-Ja Framework is a unifying framework for planning and resources development and has a strong footing on science, business, and eastern philosophy. While providing practical guidelines for achieving food, water, climate and environmental security, this article presents Nepal Vision 2040, which is developed considering challenges that Nepal is currently facing and its available Asta-Ja resources, envisioning that Nepal’s economic development reaching at the par of developed nations by 2040. Key strategic sectors identified in Nepal Vision 2040 include smallholder mixed-farming system, agro-jadibuti industrialization, protection of drinking water sources, climate change adaptation, environmental pollution control, conservation of natural resources, infrastructure, tourism, renewable energy, alleviation of inequalities, and good governance. This article demonstrates strategies for addressing social discrimination and inequalities through the process of Asta-Ja community capacity-building and self-reliant development. Ecological balance of Asta-Ja resources is necessary for sustainable natural resources, economic development, and community resiliency. The Government of Nepal is suggested to adopt Asta-Ja Framework as its national planning and development framework for sustainable economic growth and fast-paced socio-economic transformation of the country.

scholarly journals Adaptation of Globalization and Their Effect to the Tanzania Economic Growth

2018 ◽  
Vol 13 (8) ◽  
pp. 217
Author(s):  
Japhet Jacksoni Katanga ◽  
Seleman Pharles
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Cooperation ◽  
Developing Economies ◽  
Economic Inequality ◽  
Developed Countries ◽  
Advance Technology ◽  
African Countries ◽  
The Social

Globalization can be defined as the process based on international cooperation strategies, the aims of globalization is to expanded the operation of a certain business or service to become into a worldwide level, Globalization facilitate the modern advance technology which help community to undergo the social, political and economic development. Globalization economic has reinforced the margination for African developing economies and make to be dependent for the few primary commodities or service whereby the price and demand are extreme determine by externally. On this outcome it lead some of the African countries to be turn into poverty or economic inequality due let their own resources being determine by developed countries. On these paper you will get a chance to oversee the effect of adaption globalization to Tanzania economic growth.

The “Resource Curse”: Lessons of the Third World

2015 ◽  
pp. 28-39
Author(s):  
V. Shmat
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Third World ◽  
Raw Materials ◽  
Resource Curse ◽  
The Third ◽  
National Institutions ◽  
Resource Nationalism ◽  
The Third World ◽  
First World

According to the hypothesis known as the “resource curse”, natural resources abundance is a brake on economic growth of many Third World countries. But is it really so? The author believes there are deeper reasons why the Third World in general – regardless of the amount of raw material resources available in each country – cannot achieve the same level of welfare as the First World. The “resource curse” theory looks for the origins of the resourceful countries’ economic problems in the institutional sphere. But this seems misleading because of excessively narrow “here and now” approach. The economic and socio-political institutions of individual countries are regarded in short periods of time when “curse” declared itself. Its typical manifestations, such as rent-seeking, stagnation or degradation of the institutions, authoritarian power, snowballing public debt and symptoms of Dutch disease, were seen in many Third World countries long before the development of the major sources of raw materials and regardless of the availability or absence of them. Therefore, it seems appropriate to speak of a kind of “three-fold institutional curse” as an explanation of continuing underdevelopment of many countries and territories. Poor national institutions in the Third World countries are not actually caused by the presence or absence of concentrated natural resources. This is the result of prior historical development with series of discrete transitions from one condition to another: from colonial status – to independent statehood; from poverty – to unexpected wealth mostly based on the exploitation of the natural resources. Qualitative transformation of national institutions usually lags far behind. As a consequence, institutional development enters into a state of stagnation (inhibiting or destabilizing economic growth) that can stretch for very long periods of time. The author concludes that the presence or absence of resources, in fact, has no fundamental impact on the nature of socio-economic development of Third World countries. The major reason hindering institutional progress has external nature, that is heavy economic dependence on the First World (coupled with informal political subordination). This circumstance begets the “resource nationalism” by the developing countries – exporters of raw materials and fuel. History of “resource nationalism” provides a useful lesson for Russia whose economy is features by growing dependency on resources. Acknowledgement. The article has been supported by a grant of the Russian Science Foundation. Project № 14-18-02345.

scholarly journals Economic growth and its key factors: an alternative view on the factors stimulating agriculture growth

2020 ◽  
Vol 175 ◽  
pp. 13028
Author(s):  
Prateep Wajeetongratana
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Resources ◽  
International Migration ◽  
Research Study ◽  
Alternative View ◽  
Key Factors ◽  
Domestic Markets ◽  
The Core

This research study makes an attempt to study the impacts of natural resources as well as financial and labor factors on economic development of contemporary states. Also, it investigates the correlation between all these factors mentioned above, in the context of countries’ economic growth. The obtained here results have helped us determine the core reasons behind international migration as a global phenomenon applicable to all countries without exceptions. Indirectly, we also demonstrate the transforming role of the labour factor as applied to economic development of countries and regions. Finally, positive impacts of a set of manufacturing factors on both international and domestic markets are demonstrated.

The Study of the Relationship between Natural Resource Abundance and Economic Growth

2013 ◽  
Vol 734-737 ◽  
pp. 3337-3341 ◽  
Author(s):  
Zhin Bin Li ◽  
Hong Juan Deng ◽  
An Shun Cheng
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Resources ◽  
Natural Resource ◽  
Policy Recommendations ◽  
Resource Abundance ◽  
The Relationship

The interrelationship between natural resource and economic development, hasn't reached an agreement. Some economists believe that rich natural resources promote economic growth. On the contrary, some economists think that rich natural resources hinder economic growth. Based on previous studies, this paper studies the relationship between natural resource and economic growth in our country. We try to explain the "Curse of Resources" through an example of Shanxi. Finally, we give some policy recommendations to avoid the "Curse of Resources".

Sign in / Sign up

Export Citation Format

Share Document