Are developing countries with abundant oil resources cursed? Are their societal, economic, and political structures doomed to be malformed and detrimental to their own populations?
As Bradshaw M. (2014: pg. 174) stated, it is the greed of the elite and not so much a curse that hinders the resource rich developing countries. The political structuring of these countries is designed to dictate societal well-being and separate their populations via monetary status. As Taylor, A. (2011) indicates, it is the same type of systematic monetary upheaval example that caused the 2011 Occupy Wall-Street (OWS) effort to dissolve financial inequality in the United States. Bradshaw M. (2014: pg. 174) goes on to explain that the same systemic behaviors initiated in Oil Rich Nations (ORNs) serve as vehicles to promote inequality and do not promote equal monetary disbursement throughout their societies. Relative to the U.S. one percent, only a chosen few who advocate capitalistic advancement in these ORNs are rewarded in what is politically referred to as rents.
Patrick, S (2012) explains that ORNs like Saudi Arabia can be referred to as the Poster Child or Blue-Print for exactly what takes place in countries that are blessed with resources yet operate as the furthest thing from a democracy. That the authoritarianism which rules the country has intentionally separated those of royal stature from the average citizen and left breadcrumbs to be divided amongst them. Any political aspirations of the average joe designed to undue the status quo is quickly met with fierce and decisive rebuke by royal regimes who thrive on income inequality. Yes, this type of treatment of those unfortunate enough to fall prey to the rich can be referred to as a curse, however, a curse can work both ways. The rich can also be cursed with having nothing at all except monetary comfort and being condemned to eternal isolation with only money to keep them company. The difference being, the rich get to choose their curse.
What role do foreign actors play, if any, in these processes (e.g., states like Russia, the US, and Britain, and oil majors like ExxonMobil, Royal Dutch Shell or Chinas CNOOC)?
Because of the oil vested interest that the U.S., Russia and Britain has in the Exxon Mobils of the world, they play specific roles in driving the economies of oil rich countries. According to Patrick, S. (2012), they willingly advocate for Dutch Disease type outcomes in many of these Nations. By immediately establishing oil manufacturing infrastructure, they not only spearhead efforts to suppress local economic growth but also reinforce political policy that stifles competitive resources. As is the norm in most economies that lack diversification, money is a great influence when it comes to political reform. It appears the resource curse and the impact that foreign actors and oil majors have on ORNs is best summarized by what is referred to as a staple trap model. This model explains why the economies of ORNs struggle to realize true economic growth and why they are subject to three adverse consequences: 1) economic diversity only occurs initially in other commodities, 2) it retards urbanization and 3) results in surplus rural labor, Auty (2001:83).
References;
Bradshaw, M. (2014). Global energy dilemmas: Energy security, globalization, and climate change. Cambridge, UK: Polity.
Occupy Wall Street https://amp.theatlantic.com/amp/photo/100159/#aoh=15742894513970&referrer=https3A%2F%2Fwww.google.com&_tf-From%20%251%24s (Links to an external site.)
Why Natural Resources Are a Curse on Developing Countries and How to Fix It https://amp.theatlantic.com/amp/article/256508/#aoh=1574284270963&referrer=https3A%2F%2Fwww.google.com&_tf-From%20%251%24s
