ECON 2020 Lecture Notes - Lecture 8: Rent-Seeking, Natural Resource, Unita
Document Summary
High/low income countries (gdp per capita/natural resource share) 20. 92: produced k, natural k (natural resources, intangible k, social k (value of nation"s social structures, human k (value of nation"s individual people/monetary value of education + skills/experience) The key to wealth is the investment in their people (human development) Economic reasons for the resource paradox in the long run: changes in the price of natural resources over time, rent seeking behavior (public sector, power) Russia: of government revenues depend on oil and natural gas exports. 1975 marxist government: cold war, unita (jonas savimbi was the leader died in 2002) Hugo chavez president: nationalized the oil industry, then nationalized the electric, steel, and cement, 90% of 2016 income will go to debt finances industry and many other industries. Most likely deficit on loans in 2016. High natural resource prices: resource exporting countries, current account surplus (nx = exports imports, currency appreciation.
