The Global Of Natural Resource Curse And Transparency

Oil has often been referred to as any economy’s lifeblood. Although this is an overemphasis, oil has been the key, nonhuman resource of the economy throughout the largest part of the 20th century. In the book “The Prize: The Epic Quest for Oil, Money, And Power” by Daniel Yergin, the author illustrates the political, societal, economic, and geo-strategic importance of this product.

Similar to the societal explanation, the cognitive explanation for the effects of the resource curse suggests that the wealth from resource abundance causes countries to be riskier with their money. Instead of investing in multiple sectors and foreign bonds, African countries tend to indulge in the wealth and focus solely upon it with no consideration of sustainability or possible busts. Since policymakers become shortsighted, they do not realize that that their economy is falling apart until it is too late.

According to Diamond, oil-states can be generally defined as countries whose economies are dominated by oil. Among “the twenty-three countries whose economies are most dominated by oil today, not a single one of them is a democracy. (Diamond 74)” When oil initially becomes a large source of revenue for countries, negative effects immediately occur. One major reason for this is that when an economy is dominated by

For instance, most of the developments in the developed countries are based on growth, that is, they are depend on natural resources like minerals, gas and oil for their economic development. Moreover, the emerging developing countries such as India, china and brazil need a lot of natural resources to develop. This means that countries which are rich in resources in Latin America have emphasized and focused on the extraction of natural resources for their development and export. Neo extractivisim has been coined to refer to policies and regulations which strengthen states role in the ownership and exploitation of natural resources, a development which has gained great momentum inmost parts of the developing nations (Burchardt, Hans-Jürgen, and Kristina, 2014). Extractivisims is a development model that has political, natural and socioeconomic influences (class structure, interaction between public and state and gender) within a country majorly in countries with abundant resources in the

First, I will explain the role of empowered institutions and countries in limiting the economic activities of developing countries, impeding on their ability to survive. Afterwards I will explain the obligation people in privileged positions have to improve the lives of those in compromised positions, at a certain degree of self-sacrifices. Finally, I will critically analyze and disprove the counter argument, which attempts to relieve us of the aforementioned duties, by discrediting the roles of institutions and developed countries in the prolongation of impoverishment.

AIPA 2: UNDERSTANDING ACTORS, INTERESTS & POWER Institutions  Basic level – states exist to provide (1) defence and (2) social order  this requires the presence of a functioning economy.  State not only produces, consumes and redistributes; it’s also the main source and enforcer of “rules of games”.  “Rules of games” are institutions  institutional quality is related to economic performance.  Evidence: No country has gotten rich with bad institutions. Politics  Politics is the process of creating new institutions. Existing institutions create a constraint on this process.  Political processes can be analysed in terms of Actors involved in the processes, their interests and their relative power (AIP).  Actors: Political,

In my country, we know wealth is wasted, but under Islamic policies, there is some balance. Oil wealth is distributed just enough to keep citizens happy. Obviously many of the other oil leaders have not learned this lesson. How can the world ignore the stories here. Most of them have been happening over long periods of time. I have to say, I am ashamed of the citizens of the world right now. We buy and buy and have no concern about where all this “stuff” comes from. But with oil, we do have some idea of the dangers of using it. The BP spill was watched by the world. The Iraq wars were related to oil, especially when Saddam Hussein set the Kuwait oil wells on fire. We know Nigeria has oil, but is a terrible place to live. Where did all the oil go? Where is the World Trade Organization in all of this. The international community goes crazy when there are copyright violations. Why not human rights violations in the name of oil? If Peter Maass is correct and we have less reserves than expected, how violent will people become to control the last bit of oil left? We have put off this dilemma we thought into the future, but this could happen in our lifetime. Let us learn the lesson from Maas, and work harder to change our ways if we

Countries that do not promote accountability and state competence to benefit from resource booms are at risk of the resource curse. The resource curse is when resource-rich countries benefit from its wealthy natural resources (i.e. oil) and do not help with its people welfare. Its government officials are less likely to meet the demands of its people because they are too busy pocketing the cash. These countries are more deceptable to authoritarianism, low levels of economic growth and stability. Wealthy natural resources can promote power conflicts and corrupt governments. Countries that have a resource curse are more likely to transition to democracy when its large revenue comes from citizens ' taxes.

Canada’s production, distribution, and use of energy resources, such as oil and natural gas had been undergoing long history of development that still persists until today. The industrialization of the sixties, and market-oriented economy of today initiated heavy reliance on natural resources extraction across the country, whether it is oil and gas, nuclear power, or timber production. Digging deeper, Canada is dependent on oil and gas production, with oil sands making up 90% of Canada’s reserves that are mainly concentrated in the Western Canada Sedimentary Basin as well as well as in the Pacific Morgan Sedimentary Basin, that stretch along Yukon, Northwest Territories, British Columbia, Alberta, and Saskatchewan (National Energy Board, 2014). Alberta appoints majority of oil sands production at the national level, then it is exported to the international market, mainly to the US, utilizing pipelines as modes of transportation.

“National Security Consequences of United States Oil Dependence” is an article created by an Independent Task Force which emphasizes how in the future the United States can experience severe consequences from using an abundant amount of oil. "For the United States, with 4.6 percent of the world's population using 25 percent of the world's oil, the transition would be especially disruptive" (Task Force 212). The transition they describe is to an economy that relies less on petroleum. This dependence on oil could possibly result in the United States to suffer with economic, and social downfall as the entire country depends on the oil we obtain. One alternative to this oil dependency is to explore all American territory for oil, which involves

In the book, Why regions fail, it is argued that rich countries are rich because they have inclusive economic and political institutions, while poor countries are poor because they have extractive economic and political institutions. Inclusive economic institutions create the incentives and opportunities necessary to harness the energy, creativity and entreprenuership in society. Extractive economic institutions do not. For example, in the 19th century, the US became the worlds most innovative economy. At the heart of this was the paatient system that gave anyone the opportunity to take out a patent to protect intellectual property rights. In contrast, the rules that governed access to land in ejidos (mexican system of government), meant farmers

The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.

In the Acemeglu, Johnson and Robinson article, “Institutions as a Fundamental Cause of Long Term Growth”, the authors emphasize how institutions are the main determinant of economic development because stronger institutions allow for more growth in education, security, and health. To observe whether strong institutions determine economic growth it is important to mention the characteristics of a strong institution that allows for fast growth. Strong institutions are able to enforce property rights, a fair judiciary, efficient bureaucracies, intellectual property rights, corporation government bankruptcy laws, and democracy (e.g. “(Lecture 13)”). Going in depth

Indeed, the coercion of capital to exploit natural resources is possible only because it is supported by the conglomeration of powerful social actors behind it. According to Growth Machine Theories, syndication of vested interests (government, land owners, developers, real estate companies), which often claim themselves as “pro-growth” coalition, encourages local development through real estate business activities, while excluding the interest local population who previously occupy the sites for years (Rudel et al., 2011). Huge commercial farming scheme for the sake of development in rural areas is other typical of the oppression from outside of the local community which tries to stick the capital into certain local areas (). Since local community usually has no systematic organization to balance

The extensive roles of energy in economic growth are well known. Kaiser, Mark .J (2007) posits that there is a solid relationship between national economy and energy development, as energy supply, demand and pricing have enormous influence on economic growth. With the fast pace of economic development over the past decades, many developing nations experienced a sharp annual growth in petroleum demand. However, those with large or potentially large petroleum deposits, very sufficient and financial resources for supply investments, especially for the development of oil and gas production and exploration.