Food security

Obtainable evidence relationship between resource

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Unformatted text preview: ource abundance may also have political consequences Poltiical dutch disease may cause: Short- sightedness among politicians Greater influence wielded by privileged groups State weakness The curse of resources? It is the devil’s excrement. We are drowning in the devil’s excrement (president of Venezuela) Dictatorship: No taxation, no representation Revenue from natural resource exports mean that countries don’t need t tax income Not being taxed, citizens do not demand representation Immobile assets (agricultural or resource wealth) effect: Cannot be easily hidden and is more easily taxed/expropriated than mobile assets To avoid expropriation, asset holders will Capture state institutions Crush any democratic movement Evidence: while 80% of countries with a per capital GDP … Corruption: Prevailing view: resource- rich countries are more corrupt, have weaker institutions State dominance in resource sectors (especially fuels and minerals) through “parastatal” companies create more opportunities for predatory behavior In resource- rich economies, states have less incentive to protect property rights (natural...
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