GEOG 216 Lecture Notes - Lecture 24: Resource Curse, Dutch Disease, Deindustrialization
17 Jan 2018
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Lecture 24 the resource curse and dutch disease. Why countries are very wealthy in terms of natural resources. Outline: the paradox of plenty, causes of the resource curse, income volatility, rent-seeking, patronage, dutch disease, avoiding the resource curse, norway, nigeria. Despite their richness, they don(cid:495)t seem to grow. Higher proportion of exports coming from oil and other natural resources tend to have lower growth rates! Importance of how is the rent spent and invested: 3 causes, income volatility, rent-seeking, patronage and (cid:494)living off the land(cid:495, dutch disease. If borrow money when oil price was low is okay: gvt spending is cyclical, borrowing money during boom times, bust. Rent-seeking, patronage and (cid:494)living off the land(cid:495: economic rents, political economy of rent-seeking: how it works: try to get contract work from the state, licence, overconsumption, & underinvestment in this process are enormous -
