The wealth derived from natural resources can have a tremendous impact on the economics and politics of producing countries. This volume addresses the fundamental channels generated by this wealth and examines the major decisions a country must make when faced with an abundance of a natural resource.
Many countries that are rich with natural resources fall victim to poverty, corruption, civil war, or deep economic crises. This volume examines the paradox of the resource curse by addressing its root causes& mdash; a buyer's unfair advantage over a supplier; governments that unwisely live off their capital; insufficient investments in education; theft by political leaders; grievances in producing regions-and what can be done to resolve these issues. Contributors lay out a broad framework suggesting how willing governments might obtain a contractual advantage over oil corporations, achieve optimal expenditure and investment practices, distribute resource wealth evenly, and build healthier relationships between state and society.
