Food security

Tend to be invested abroad petrodollar investment in

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Unformatted text preview: resource rents are easily obtainable) Evidence: Relationship between resource wealth and corruption is unclear. BUT: increases in oil rents produces increase in corruption Civil wars: Resource wealth can contribute to the conflict trap Resource rents can finance rebel groups, criminal gands, militias In settings where the rule of law is weak, resource wealth creates opportunities for extortion and “protection rents” If these groups enrich themselves while the state’s capacity to govern is limited, the res Evidence: resource- rich countries tend to have longer civil wars. “rentier” states resource abundant countries are part of a class of states that earn money from external “rents” instead of domestic economic activity resource exports remittances foreign aid tourism receipts RENTIER STATES SHARE MANY CHARACTERISTICS OF RESOURCE ABUNDANT STATES (ALTHOUGH SOME RENTS DO NOT CAUSE DUTCH DISEASE) IS OIL DIFFERENT? Highly volatile growth rates (Russia, UAE) Gender inequality esp. the Middle East and North Africa Oil production reduces women in the labor force Women who don’t work have less political influence Neighboring countries can be drawn into the resource curse Tariffs and fees on pipelines and gas transit, with opportunities for corruption Remittances fr...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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