Learning Objectives
What is the Resource Curse?
After studying this unit, you should be able to:
- Be able to explain what the ‘resource curse’ is
- Be able to explain the mechanisms of the resource curse
- Be able to tell whether or not your country is suffering from the resource curse
- Know what ‘Dutch Disease’ is
- Be able to link the three functions of parliament to the extractive industries sector
Introduction and Overview
This Unit will give an introduction to the resource curse and the extractive industries sector. It will describe the resource curse and the mechanisms behind it. The Unit outlines how conflict and war are related to extractive industries, and how trade openness and democracy are linked to the oil and mining sector. It will give a short description of how commodity prices can affect government finances and how economic diversification is related to the extractive industries sector. The Unit will then sketch how the institution of parliament can use its constitutional rights to influence the resource curse.
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