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Petrostate Pathologies

Because theres less of a feeling that the government

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Unformatted text preview: pulations or are past peak or both really have to worry about reserves per capita Also means that you don’t necessarily want to pull oil out of the ground as fast as possible – hyperinflation. Thomas Friedman’s First Law of Petropolitics: As oil prices go up, freedom goes down. Because: there’s less of a feeling that the government is responsible for their people, since their getting their tax revenue from oil, not people. ! no taxation, no representation. Also, people in fact are better off, less demand for democracy. Domestic Impacts of Oil Wealth: Boom and bust economic cycles: 2001 – 2008: price of oil goes from $15/barrel to $151/barrel – boom and bust cycle that makes it hard to govern On one hand makes you more disciplined, but it’s hard to be disciplined and not spend money on the people when they’re demanding it. Dutch Disease: your currency appreciates relative to your neighboring countries’ so muc...
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