GEOS2121 Chapter Notes - Chapter 6: Embeddedness, World Economy, New York Mercantile Exchange
29 Nov 2018
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1st traded commodity because: energy source, material qualities liquid propensity = easy flow (compared to renewable energies like hydro, solar and wind power) Petrocapitalism: tremendous wealth generated from this critical commodity: encompass over 90% of state revenues in oil exporting countries, = a magical commodity that promises instant wealth and dreams of national development. Petro-state = most important institution within the oil complex. Concessions are territorially constituted in the specific locations in which the extraction happens wealth generated = funneled elsewhere: fiscal centralisation : accumulation of money. Oil curse creates the phenomenon of the rentier state where massive windfalls of oil money create state corruption and lack of accountability to domestic populations: ex. Most nigerians suffer incredible levels of poverty, the government spends lavishly and sizable funds have simply gone missing. Increasing neoliberalisation of oil policy of the vast majority of the wealth generated is captured by private transnational corporations.
