Monday, April 21, 2014

Resources not the problem in resource curse

The resource curse has always been a very compelling argument for me. The most persuasive part of the argument is when speaking about how the government is affected by the presence of non-essential resources. Proponents of the resource curse argue that because of resources like oil, diamonds and gold governments become corrupt, are no longer accountable to their people and cannot provide adequate law enforcement. All of these systems come out of the fact that the government does not need taxes (because they get their money from the resource), they are unable to track a vast resource and have a weakened bureaucracy when revenues come from oil and not taxes.
In a developing nation, many of these things are present without a resource like oil. However, when a state has oil these challenges are augmented. I do not believe that resource curse is destiny for developing countries with oil and diamond, but I do believe it makes a destiny like this much more viable. Developing governments need to focus on building up their people and the standard of living in their state. They need to focus on providing a strong rule of law, education, health services and fair and frequent elections. When governments are not accountable to their people through taxes, these things no longer become a priority.
Ross explained how transparency is an adequate fix for this type of curse, but transparency is only the beginning. The government needs to shift its priorities and economy away from exporting the resource to provide people the freedoms that must come before development. Resources are not the reason for lack of development, but they are a barrier. They give the governments an excuse to not develop and provide other sorts of rights to the people – rights needed to move from a developing nation to a developed nation.

Although Mitchell’s argument was an interesting twit by coupling democracy and oil together, for many developing nations it does not seem valid. For instance, he states “the transformation of oil into large and unaccountable government incomes is not a cause of the problem of democracy and oil, but the outcome of particular ways of engineering political relations out of flows of energy” (5). This quote doesn't seem to adequately describe the plight of developing countries in seeking democracy and development. Failing to manage the oil well happens because there is a lack of democracy. A lack of democracy comes from the refusal of the government to provide certain freedoms to their people. One reason for this refusal can be because of the resources that the state has. Although this is circular logic, there is not a way to break this chain until the governments stop glorifying the resources, and start working for the people. The resource curse in its simplest form is governments valuing resources over their own people. Resources are not the problem in the resource curse, replace oil with anything -- but if the government favors that over its people, it could become the "puppy curse" or the "approval from stronger nations curse." Until this mindset shifts, nothing will change.  

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