POLS 396 Lecture Notes - Lecture 2: Jeffrey Sachs, Resource Curse, Corporate Transparency
Document Summary
A phenomenon where countries endowed with natural resources, particularly non-renewable resources such as fossil fuels (oil and gas) and minerals tend to exhibit low economic growth. In some cases, there is evidence of conflicts and overall socio-economic deprivation despite the abundance of natural resources. Also k(cid:374)o(cid:449)(cid:374) as the (cid:858)parado(cid:454) of ple(cid:374)t(cid:455)(cid:859) (cid:894)karl 1997(cid:895) Jeffrey sachs and andrew warner (1999) did subsequent research and found a negative correlation between growth rates and natural resource exports (use 97 countries in their study) The negative relationship seen to be constant even after considering other relevant economic variables su(cid:272)h as per (cid:272)apita i(cid:374)(cid:272)o(cid:373)e, trade poli(cid:272)(cid:455), go(cid:448)(cid:859)t effi(cid:272)ie(cid:374)(cid:272)(cid:455), et(cid:272). But se(cid:448)eral studies e(cid:454)a(cid:373)i(cid:374)e (cid:858)loota(cid:271)le(cid:859) (cid:373)i(cid:374)erals su(cid:272)h as gold, dia(cid:373)o(cid:374)d, (cid:272)oper, et(cid:272). The overall focus is on non-renewable (cid:374)atural resour(cid:272)es . History: named after macroeconomic structural adjustments during mineral boom in the netherlands in early 1960s, which led to the shifting or resources from other sectors of the economy to boost the booming natural gas sector.
