Dutch Disease, Resource Curse & Development.pdf

Bad institutions and bad governance are not the cause

This preview shows page 40 - 42 out of 42 pages.

Bad “institutions” and “bad governance” are not the cause of DD and RC, but they exacerbate the problems Among developing countries with strong resource dependence, the only model for more blessing than curse was Indonesia but it is a special case In the long run, there is a strong correlation between
Image of page 40

Subscribe to view the full document.

UNCTAD Division on Technology and Logistics - Knowledge Sharing, Training and Capacity Development Branch 41 Conclusion and Outlook II There is no quick and easy medicine for DD and RC A new overwhelmingly strong comparative advantage squeezes more or less the comparatively disadvantageous sectors A mix of saving abroad and spending for investment domestically is advisable, embedded in macro policies which stabilize the real exchange rate at a level competitive for non-resource tradables, especially manufactures More generally, resource-rich economies are, more or less, rentier economies which differ from normal market economies. DD and RC concepts should be embedded in the political economy of rentier economies whose predominant income are rents from natural resources.
Image of page 41
UNCTAD Division on Technology and Logistics - Knowledge Sharing, Training and Capacity Development Branch 42 Literature Corden, W.M. and Neary, J.P. (1982). “Booming Sector and De - Industrialisation in a Small Open Economy”. The Economic Journal , 92 (December 1982): 825-848. As a first quick introduction: Ebrahim-zadeh, Ch., 2003: Dutch Disease: Too much wealth managed unwisely. In: Finance & Development, Vol. 40, March, No. 1 Gelb, A. and Associates (1988). Oil Windfalls: Blessing or Curse? Published for the World Bank. Oxford, Oxford University Press. Humphreys, M., Sachs, J. and Stiglitz, J.E., Eds. (2007). Escaping the Resource Curse . New York, Columbia University Press. Sachs, J.D., and Warner, A.M. (2001). “The Curse of Natural Resources”. European Economic Review, 45(4 -6): 827-838. UNCTAD (2008): The Least Developed Countries Report 2009: The state and developing governance. Background Paper No. 4 (April 2008) by Jourdan, P. (2008): Challenges of LDC Resource-Based Develop- ment. Geneva.
Image of page 42

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern