IDEAS home Printed from https://ideas.repec.org/a/sae/jodeso/v34y2018i3p264-296.html
   My bibliography  Save this article

The Dynamics of Industrial Development in a Resource-Rich Developing Society: A Political Economy Analysis

Author

Listed:
  • Keston K. Perry

    (Center for International Environment and Resource Policy, The Fletcher School of Law and Diplomacy, Tufts University, Medford, Massachusetts)

Abstract

This article criticizes the resource curse thesis for neglecting the interplay of international factors and domestic politics, that is the political settlement, in explaining industrial performance in a resource-dependent society – Trinidad and Tobago. Using political settlement, analysis secondary as well as interview data, it examines the dynamics at the macro and sectoral levels in iron and steel and telecommunications in Trinidad and Tobago. The historical evidence reveals that anti-colonial mobilizations spurred critical public investments in developmental institutions and industrial projects responsible for improving the country’s productive base and technological capability in the post- Black Power period. These investments were bolstered by a favorable geopolitical climate and the 1973 commodity boom. Sectoral case studies reveal how shifts in the country’s political settlement affected late-industrializing accumulation of accumulation technological capabilities. Hereafter neoliberal policies facilitated an increased role for external actors in economic policy and ethnic-based clientelism within the political economy.

Suggested Citation

  • Keston K. Perry, 2018. "The Dynamics of Industrial Development in a Resource-Rich Developing Society: A Political Economy Analysis," Journal of Developing Societies, , vol. 34(3), pages 264-296, September.
    • Handle: RePEc:sae:jodeso:v:34:y:2018:i:3:p:264-296
    DOI: 10.1177/0169796X18786136
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0169796X18786136
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0169796X18786136?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
    2. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, June.
    3. Frances Stewart, 1978. "Technology and Underdevelopment," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15932-1.
    4. Jorge Katz, 2015. "The Latin American Transition from an Inward-Oriented Industrialisation Strategy to a Natural Resource-Based Model of Economic Growth," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(1), pages 9-22, April.
    5. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    6. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    7. Erik S. Reinert & Jayati Ghosh & Rainer Kattel (ed.), 2016. "Handbook of Alternative Theories of Economic Development," Books, Edward Elgar Publishing, number 15311.
    8. Mushtaq H. Khan, 2013. "Technology Policies and Learning with Imperfect Governance," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 2, pages 79-115, Palgrave Macmillan.
    9. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    10. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    11. Gavin Wright & Jesse Czelusta, 2004. "WHY ECONOMIES SLOW: The Myth of the Resource Curse," Challenge, Taylor & Francis Journals, vol. 47(2), pages 6-38.
    12. Hazel Gray, 2016. "Access Orders and the ‘New’ New Institutional Economics of Development," Development and Change, International Institute of Social Studies, vol. 47(1), pages 51-75, January.
    13. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    14. Stubrin, Lilia, 2017. "Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 54(C), pages 167-175.
    15. Lou Anne Barclay, 2015. "Addendum: Embedded Autonomy and the Industrial Policy Process in the Twenty-First Century: Developing an Aluminium Industry in Trinidad and Tobago," Palgrave Macmillan Books, in: Managing FDI for Development in Resource-Rich States, chapter 8, pages 149-168, Palgrave Macmillan.
    16. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    17. M. Lodge & L. Stirton, 2002. "Embedding Regulatory Autonomy In Caribbean Telecommunications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 73(4), pages 667-693, December.
    18. Alfredo Saad-Filho & John Weeks, 2013. "Curses, Diseases and Other Resource Confusions," Third World Quarterly, Taylor & Francis Journals, vol. 34(1), pages 1-21.
    19. R. M. Auty, 2017. "Natural Resources and Small Island Economies: Mauritius and Trinidad and Tobago," Journal of Development Studies, Taylor & Francis Journals, vol. 53(2), pages 264-277, February.
    20. Anabel Marin & Lizbeth Navas-Alemán & Carlota Perez, 2015. "Natural Resource Industries As a Platform for the Development of Knowledge Intensive Industries," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(2), pages 154-168, April.
    21. Longmore, Rohan & Jaupart, Pascal & Cazorla, Marta Riveira, 2014. "Toward economic diversification in Trinidad and Tobago," Policy Research Working Paper Series 6840, The World Bank.
    22. Lou Anne Barclay, 2004. "Foreign direct investment-facilitated development: the case of the natural gas industry of Trinidad and Tobago," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 485-505.
    23. Gray, Hazel, 2016. "Access orders and the 'new' new institutional economics of development," LSE Research Online Documents on Economics 62142, London School of Economics and Political Science, LSE Library.
    24. Alice H. Amsden, 2009. "Escape from Empire: The Developing World's Journey through Heaven and Hell," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262513153, December.
    25. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    26. Lou Anne Barclay, 2015. "Managing FDI for Development in Resource-Rich States," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-51609-1.
    27. Paul Alexander Haslam, 2016. "Overcoming the Resource Curse: Reform and the Rentier State in Chile and Argentina, 1973–2000," Development and Change, International Institute of Social Studies, vol. 47(5), pages 1146-1170, September.
    28. Richard Grabowski, 2002. "The Relationship of State and Society: Productive or Unproductive," Journal of Developing Societies, , vol. 18(1), pages 23-45, March.
    29. Ryan Saylor, 2014. "Commodity booms, coalitional politics and government intervention in credit markets," Review of International Political Economy, Taylor & Francis Journals, vol. 21(3), pages 640-669, June.
    30. repec:ucp:bkecon:9780226731445 is not listed on IDEAS
    31. Stanley L. Engerman & Kenneth L. Sokoloff, 2005. "Colonialism, Inequality, and Long-Run Paths of Development," NBER Working Papers 11057, National Bureau of Economic Research, Inc.
    32. Marín, Anabel & Navas-Alemán, Lizbeth & Perez, Carlota, 2015. "Natural resource industries as a platform for the development of knowledge intensive industries," Nülan. Deposited Documents 2689, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    33. Papaioannou, Theo & Watkins, Andrew & Mugwagwa, Julius & Kale, Dinar, 2016. "To Lobby or to Partner? Investigating the Shifting Political Strategies of Biopharmaceutical Industry Associations in Innovation Systems of South Africa and India," World Development, Elsevier, vol. 78(C), pages 66-79.
    34. Figueiredo, Paulo N. & Piana, Janaina, 2016. "When “one thing (almost) leads to another”: A micro-level exploration of learning linkages in Brazil's mining industry," Resources Policy, Elsevier, vol. 49(C), pages 405-414.
    35. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Radu Nartita & Daniela Ionita & Ioana Demetrescu, 2021. "Sustainable Coatings on Metallic Alloys as a Nowadays Challenge," Sustainability, MDPI, vol. 13(18), pages 1-20, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dwumfour, Richard Adjei & Ntow-Gyamfi, Matthew, 2018. "Natural resources, financial development and institutional quality in Africa: Is there a resource curse?," Resources Policy, Elsevier, vol. 59(C), pages 411-426.
    2. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on internatio," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    3. Dong-Hyeon Kim & Shu-Chin Lin, 2017. "Natural Resources and Economic Development: New Panel Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 363-391, February.
    4. Tcheta-Bampa, Tcheta-Bampa & Kodila-Tedika, Oasis, 2018. "Dynamisation de la malédiction des ressources naturelles en Afrique sur les performances économiques : institution et guerre froide [Curse of Natural Resources and Economic Performance in Africa: I," MPRA Paper 86510, University Library of Munich, Germany.
    5. Boschini, Anne & Pettersson, Jan & Roine, Jesper, 2013. "The Resource Curse and its Potential Reversal," World Development, Elsevier, vol. 43(C), pages 19-41.
    6. Mounir Amdaoud, 2019. "Ressources naturelles, innovation et développement économique : vers une nouvelle approche," CEPN Working Papers 2019-06, Centre d'Economie de l'Université de Paris Nord.
    7. Morck, Randall & Nakamura, Masao, 2018. "Japan's ultimately unaccursed natural resources-financed industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 47(C), pages 32-54.
    8. Taner Turan & Halit Yanıkkaya, 2020. "Natural resource rents and capital accumulation nexus: do resource rents raise public human and physical capital expenditures?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(3), pages 449-466, July.
    9. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    10. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    11. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    12. Bhattacharyya, Sambit & Hodler, Roland, 2010. "Natural resources, democracy and corruption," European Economic Review, Elsevier, vol. 54(4), pages 608-621, May.
    13. Janus, Thorsten, 2024. "Does export underreporting contribute to the resource curse?," World Development, Elsevier, vol. 181(C).
    14. Baena, César & Sévi, Benoît & Warrack, Allan, 2012. "Funds from non-renewable energy resources: Policy lessons from Alaska and Alberta," Energy Policy, Elsevier, vol. 51(C), pages 569-577.
    15. 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).
    16. Andreas Leibbrandt & John Lynham, 2018. "Does the paradox of plenty exist? Experimental evidence on the curse of resource abundance," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 337-354, June.
    17. Roman Horváth & Ayaz Zeynalov, 2014. "The Natural Resource Curse in Post-Soviet Countries : The Role of Institutions and Trade Policies," Working Papers 341, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    18. de Soysa, Indra & Krieger, Tim & Meierrieks, Daniel, 2022. "Oil and property rights," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 79, pages 1-13.
    19. repec:hal:cepnwp:hal-02136083 is not listed on IDEAS
    20. Le Clech, Néstor A., 2024. "Policy market orientation, property rights, and corruption effects on the rent of non-renewable resources in Latin America and the Caribbean," Resources Policy, Elsevier, vol. 91(C).
    21. Adrian Boos & Karin Holm‐Müller, 2012. "A theoretical overview of the relationship between the resource curse and genuine savings as an indicator for “weak” sustainability," Natural Resources Forum, Blackwell Publishing, vol. 36(3), pages 145-159, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jodeso:v:34:y:2018:i:3:p:264-296. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.