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Resource rents and populism in resource-dependent economies

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  • Seghezza, Elena
  • Pittaluga, Giovanni B.

Abstract

A common explanation for populism is the existence of autocratic institutions, with an autocratic regime dispelling opposition by distributing income to the ‘masses’ in the manner of the ‘bread and circuses’ of Imperial Rome. In Bolivia, Ecuador, and Venezuela, populist redistribution occurred however in conjunction with weakening of democratic institutions. We associate populist redistribution with resource rents available in the course of the commodity price cycle. When domestic production is predominantly natural resources, other industry interests are ineffective in opposing populist redistribution and preventing the undermining of democracy. Rather than associating populism with preexisting autocracy as others have done, we show empirically that, in the cases we study, resource rents facilitated populism that allowed regime change whereby authoritarian institutions were created.

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  • Seghezza, Elena & Pittaluga, Giovanni B., 2018. "Resource rents and populism in resource-dependent economies," European Journal of Political Economy, Elsevier, vol. 54(C), pages 83-88.
    • Handle: RePEc:eee:poleco:v:54:y:2018:i:c:p:83-88
    DOI: 10.1016/j.ejpoleco.2018.04.002
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    Cited by:

    1. Mohtadi, Soran & Castells-Quintana, David, 2021. "The distributional dimension of the resource curse: Commodity price shocks and income inequality," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 63-78.
    2. Giovanni B. Pittaluga & Elena Seghezza & Pierluigi Morelli, 2021. "The political economy of hyperinflation in Venezuela," Public Choice, Springer, vol. 186(3), pages 337-350, March.
    3. Oluwaseyi Musibau, Hammed & Olawale Shittu, Waliu & Yanotti, Maria, 2022. "Natural resources endowment: What more does West Africa need in order to grow?," Resources Policy, Elsevier, vol. 77(C).
    4. François Facchini & Louis Jaeck, 2021. "Populism and the rational choice model: The case of the French National Front," Rationality and Society, , vol. 33(2), pages 196-228, May.
    5. Pittaluga, Giovanni B. & Reghezza, Alessio & Seghezza, Elena, 2020. "Reconsidering the modernization hypothesis: The role of diversified production and interest‐group competition," European Journal of Political Economy, Elsevier, vol. 65(C).
    6. Nur Arifatul Ulya & Edwin Martin & Mamat Rahmat & Bambang Tejo Premono & Leo Rio Ependi Malau & Efendi Agus Waluyo & Andika Imanullah & Abdul Hakim Lukman & Asmaliyah & Armansyah & Dani Saputra & Etik, 2022. "Enabling Factors of NTFP Business Development for Ecosystem Restoration: The Case of Tamanu Oil in Indonesian Degraded Peatland," Sustainability, MDPI, vol. 14(17), pages 1-26, August.
    7. Waliu Olawale Shittu & Hammed Oluwaseyi Musibau & Sodiq Olaiwola Jimoh, 2022. "The complementary roles of human capital and institutional quality on natural resource - FDI—economic growth Nexus in the MENA region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7936-7957, June.
    8. Snower, Dennis J. & Bosworth, Steven J., 2021. "Economic, social and political fragmentation: Linking knowledge-biased growth, identity, populism and protectionism," European Journal of Political Economy, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Populism; Latin America; Commodity price cycle;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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