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The Resource Curse: A Catalysit for Bad Governance

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April 14, 2014 The Resource Curse. A catalyst for bad governance. The Case of Equatorial Guinea The Resource Curse- a Catalyst of Corruption? Richard Day, an economist with a post graduate degree from the London School of Economics analyses the benefits of abundance of natural resources to African countries and why it is not the main reason for corruption. Richard makes a case for some of the top oil producers in the world which includes the Northern part of America which produces more oil than all African countries combined yet on the good governance scale it scores very highly. Canada is one of the least corrupt countries yet is one of the top ten oil producers in the world.(Day, 2014) Resource Rich Countries and Weak Institutions: The Resource Curse Effect Mohammed Ali Alayli’s paper discusses how it is important to realize that it is not natural resources that are the problem; rather, it is lack of good governance and democracy. Alayli using Equatorial Guinea as a case study, he discusses how few people have benefited from the oil riches and the country ranks near the bottom of the UN human development index. He however suggests that one solution will be to increase the transparency of resource payments by firms to governments and increasing government transparency in the management of resource revenues.(Alayli, 2005) Critique Richard Day’s paper makes a very good point with respect to the fact that resource curse is not the root cause of corruption but rather just a
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