PSCI 2012 Study Guide - Midterm Guide: Institutional Revolutionary Party, Resource Curse, Monroe Doctrine
30 Jan 2019
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Document Summary
Resource curse: the resource curse is a paradoxical situation in which countries with an abundance of non-renewable natural resources experience stagnant economic growth or even economic contraction. The resource curse occurs as a country begins to focus all of its production means on a single industry, such as mining, and neglects investment in other major sectors. As a result, the nation becomes overly dependent on the price of commodities, and overall gross domestic product becomes extremely volatile. Additionally, government corruption often results when proper resource rights and an income distribution framework are not established in the society, resulting in unfair regulation of the industry. The resource curse is most often witnessed in emerging markets following a major natural resource discovery. Neo-colonialism: the practice of using capitalism, globalization and cultural imperialism to influence a developing country (usually a former colony) in lieu of using direct military control or indirect political control.
