IDSA01H3 Lecture Notes - Resource Curse
25 Feb 2013
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More money you could get at through resources it was better. All post colonial nation wanted to be at the industrial take of stage of rostows model. From the stats the resource rich countries grow more slowly. Resource rich have lower rates of increase in their per capita income, Declining terms of trade argue that a revenue state gets from exporting apples or oil is less than what a state would get from a processed good. For every unit you export you have to pay more for a unit of import of processed good. Egypt gets huge amounts of rent from united states. If the money from natural resources are controlled by private economies it allows them to weaken a states democracy.
