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The Political Economy of the Resource Curse: A Development Perspective

Author

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  • Antonio Savoia

    (Global Development Institute, University of Manchester, Manchester M13 9PL, United Kingdom)

  • Kunal Sen

    (United Nations University World Institute for Development Economics Research (UNU-WIDER), FI-00160 Helsinki, Finland)

Abstract

This article reviews the recent literature on the developmental effects of resource abundance, assessing likely effects and channels with respect to key development outcomes. To date, this area has received less analysis, although it is relevant to the United Nations' Sustainable Development Goals agenda, as a significant number of the world's poor live in African resource-rich economies. We argue that the presence of a natural resource sector per se does not necessarily translate into worse development outcomes. The natural resource experience varies to a significant extent. Countries with similar levels of resource rents can end up with significantly different achievements in terms of income inequality, poverty, education, and health. The challenge is to explain the different natural resource experiences. A pivotal mechanism behind the developmental effects of the natural resources sector is the type of states and political institutions that resource-abundant economies develop.

Suggested Citation

  • Antonio Savoia & Kunal Sen, 2021. "The Political Economy of the Resource Curse: A Development Perspective," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 203-223, October.
    • Handle: RePEc:anr:reseco:v:13:y:2021:p:203-223
    DOI: 10.1146/annurev-resource-100820-092612
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    Cited by:

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    3. Issa Dianda & Idrissa Ouedraogo & Hamidou Sawadogo, 2024. "Inclusive human development effect of financial inclusion in sub‐Saharan Africa: A gender perspective," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1896-1917, April.
    4. Coveri, Andrea & Paglialunga, Elena & Zanfei, Antonello, 2024. "Global value chains and within-country inequality: The role of functional positioning," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 382-397.
    5. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    6. Liu, Yishuang & Huang, Jinpeng & Xu, Jianxiang & Xiong, Shufei, 2024. "Natural resource dependence and sustainable development policy: Insights from city-level analysis," Resources Policy, Elsevier, vol. 91(C).
    7. Sampson Vivian Esumanba & Gyamfi Emmanuel & Atsu Francis & Nantogmah Danaa & Amoh John Kwaku, 2024. "Political Commitment to resource management, the African case," SN Business & Economics, Springer, vol. 4(6), pages 1-19, June.
    8. Tatar, Moosa & Harati, Javad & Farokhi, Soheila & Taghvaee, Vahid & Wilson, Fernando A., 2024. "Good governance and natural resource management in oil and gas resource-rich countries: A machine learning approach," Resources Policy, Elsevier, vol. 89(C).
    9. Tong, Jun & Wang, Kai, 2024. "Exploring the role of higher education attainment in shaping the nexus of mineral resources dependency, business freedom, and globalization in South Asia," Resources Policy, Elsevier, vol. 91(C).
    10. Ferreira, João J. & Gomes, Sofia & Lopes, João M. & Zhang, Justin Z., 2023. "Ticking time bombs: The MENA and SSA regions' geopolitical risks," Resources Policy, Elsevier, vol. 85(PA).
    11. Masi, Tania & Savoia, Antonio & Sen, Kunal, 2024. "Is there a fiscal resource curse? Resource rents, fiscal capacity and political institutions in developing economies," World Development, Elsevier, vol. 177(C).
    12. Abman, Ryan & Longbrake, Gabrial, 2023. "Resource development and governance declines: The case of the Chad–Cameroon petroleum pipeline," Energy Economics, Elsevier, vol. 117(C).
    13. Bitoto, Fabrice Ewolo & Nkoa Ongo, Emmanuel Bruno, 2024. "Natural resource rents and public spending on education in Africa: Does women's political empowerment matter?," Resources Policy, Elsevier, vol. 93(C).
    14. van Krevel, Charan & Peters, Marlou, 2024. "How natural resource rents, exports, and government resource revenues determine Genuine Savings: Causal evidence from oil, gas, and coal," World Development, Elsevier, vol. 181(C).
    15. Andrea Coveri & Elena Paglialunga & Antonello Zanfei, 2023. "Global value chains, functional diversification and within-country inequality: an empirical assessment," Working Papers 2302, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2023.

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    More about this item

    Keywords

    resource abundance; inequality; state capacity; Sustainable Development Goals; poverty; human development;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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