POST 201 Lecture Notes - Lecture 4: Dutch Disease, Resource Curse, Natural Resource

• School: Rider University
• Department: Policy Studies
• Course: POST 201
• Professor: Matusow Allan

Document Summary

1/21/16; energy and politics 2: the resource blessing. Inflates your currency and crowds out other parts of your economy. If your economy is largely dependent on oil and gas, then it gets disrupted due to the cyclical effects. Allegations against natural resources and how they harm politics. State controls the resource income and they distribute it to ward off democratic pressures. The state is independent of the people because they don"t tax them. Citizens have less right to argue against state because they are getting benefits without being taxed. Canada has had a little bit of dutch disease. They did have a one party government for a long time. Some arguments that mexico got more democratic as their oil exports started to taper off. Recap: natural resource endowments produce bad outcomes for societies and economies (ross, gylfason, beblawi etc. ) Not so fast, say alexeev and conrad (2009), and dunning (2008) and other (herb, etc. )