Escaping the Resource Curse

Click to increase image sizeClick to decrease image size Notes This paper has emerged out of a broader programme of work on the resource curse that I have done for the Development Research Centre on the Future State at the Institute of Development Studies. I wish to thank the Centre for funding this work and the Centre's director, Mick Moore, for his advice and help along the way. I have also benefited from Sarah Best's able research assistance. The usual caveat applies. 1. As cited in Benjamin Higgins, Economic Development: Problems, Principles, and Policies (W. W. Norton, 1968), p. 222. 2. See Jacob Viner, International Trade and Economic Development (Free Press, 1952) ; Arthur Lewis, The Theory of Economic Growth (R. D. Irwin, 1955). 3. Walter Rostow, The Stages of Economic Growth: a Non-communist Manifesto (Cambridge University Press, 1961). 4. Bela Balassa, The Process of Industrial Development and Alternative Development Strategies (Princeton University, 1980), p. 2; Anne Krueger, 'Trade Policy as an Input to Development', American Economic Review, Vol. 70, No. 2 (1980), pp. 288–92; P. J. Drake, 'Natural Resources Versus Foreign Borrowing in Economic Development', The Economic Journal, Vol. 82, No. 327 (1972), pp. 951–62. 5. Hans Singer, 'The Distribution of Gains between Investing and Borrowing Countries', The American Economic Review, Vol. 40, No. 2 (1950), pp. 473–85; Raul Prebisch, The Economic Development of Latin America and its Principal Problems (United Nations, 1950) ; Ragnar Nurske, 'Trade Fluctuations and Buffer Policies of Low-Income Countries', Kyklos, Vol. 11, No. 2 (1958), pp. 141–4; Jonathan Levin, The Export Economies: Their Pattern of Development in Historical Perspective (Harvard University Press, 1960) ; Albert Hirschman, The Strategy of Economic Development (Yale University Press, 1958). 6. Alan Gelb and Associates, Oil Windfalls: Blessing or Curse (Oxford University Press, 1988) ; Richard Auty, Sustaining Development in Mineral Economies: The Resource Curse Thesis (Routledge, 1993) ; Jeffrey Sachs Thorvaldur Gylfason, Tryggvi Thor Herbertsson Carlos Leite Eric Neumayer, 'Does the "Resource Curse" Hold for Growth in Genuine Income as Well? ', World Development, Vol. 32, No. 10 (2004), pp. 1627–40. 7. Michael Ross, 'How Does Mineral Wealth Affect the Poor? ', mimeo 2003. 8. Leonard Wantchekon, 'Why Do Resource Dependent Countries Have Authoritarian Governments? ', Yale University paper, http: //www. yale. edu/leitner/pdf/1999-11. pdf, 12 December 1999; Michael Ross, 'Does Oil Hinder Democracy? ', World Politics, Vol. 53, No. 3 (2001), pp. 297–322; Nathan Jensen Paul Collier Paul Collier Paul Collier Paul Collier Paul Collier, Anke Hoeffler Michael Herb, 'No Representation Without Taxation? Rents, Development and Democracy', unpublished Worldwide Web document, 2003, http: //www. gsu. edu/∼polmfh/herbᵣentierₛtate. pdf. 11. Andrew Schrank, 'Reconsidering the "Resource Curse": Sociological Analysis versus Ecological Determinism' (mimeo, 2004). 12. Graham Davis, 'Learning to Love the Dutch Disease: Evidence from Mineral Economies', World Development, Vol. 23, No. 10 (1995), pp. 1765–80. 13. See Michael Ross, 'The Political Economy of the Resource Curse', World Politics, Vol. 51, No. 2 (1999), pp. 297–322, for a review of this literature. 14. Lawrence Krause, 'Social Capability and Long-term Economic Growth', in Bon-Ho Koo Pradeep Mitra, Adjustment in Oil-Importing Developing Countries: A Comparative Economic Analysis (Cambridge University Press, 1994). 15. See, for instance, Michael Ross, Timber Booms and Institutional Breakdown in Southeast Asia (University of Michigan Press, 2001) ; Collier, 'Doing Well Out of War'; and Collier Terry Karl, The Paradox of Plenty: Oil Booms and Petro-States (California University Press, 1997) ; Dirk Vandewalle, Libya Since Independence: Oil and State-Building (Cornell University Press, 1998) ; Mick Moore, 'Revenues, State Formation and the Quality of Governance in Developing Countries', International Political Science Review Vol. 25, No. 3 (2004), pp. 297–319; Richard Auty Miguel Urrutia, 'The Politics of Economic Development Policies in Resource Rich States', in Miguel Urrutia Ross, Timber Booms, p. 8. 21. Paul Stevens, 'Resource Impact: a Curse or a Blessing', Draft Working Paper, Centre for Energy, Petroleum and Mineral Law and Policy, University of Dundee, 2003; Auty Jeffrey Davis, Rolando Ossowski Erika Weinthal Pauline Jones-Luong Erika Weinthal Pauline Jones-Luong and Richard Robison, Indonesia: The Rise of Capital (Allen and Unwin, 1986). 25. Bevan et al. , The political Economy of Poverty, Equity, and Growth, p. 421. 26. John Perkins, Geopolitics and the Green Revolution: Wheat, Genes and the Cold War (Oxford University Press, 1997). 27. See Andrew Rosser, 'Escaping the Resource Curse: The Case of Indonesia', Journal of Contemporary Asia (forthcoming). 28. Jeffrey Davis, Rolando Ossowski Rosser, 'Escaping the Resource Curse'. 41. Adrian Leftwich, 'Governance, the State and the Politics of Development', Development and Change, Vol. 25, No. 1 (1994), pp. 363–86.