POST 201 Lecture Notes - Lecture 3: 1973 Oil Crisis, Resource Curse, Dutch Disease

• School: Rider University
• Department: Policy Studies
• Course: POST 201
• Professor: Matusow Allan

Document Summary

Revenue allows to build military and increase authoritarian rule. Becomes dependent on oil money and there are damaging affects due to cyclical price swings. Replaces taxes and so people don"t feel the need to get as involved in making decisions. Countries whose main export is oil actually grow slower than those who don"t. More centralized control when a natural resource is owned by a government. In us, mineral rights belong to whoever owns the land. People don"t feel the need to work or struggle to strive to get to a financial reward. Their currency had appreciated a lot which made their exports uncompetitive. Government had to pass out a lot of welfare and unemployment benefits. Has figured out how to get around dutch disease. Look at some of the political theory behind energy: Gaining money without risking capital or using your own labor.