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Dictatorship as a Political Dutch Disease

Author

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  • Lam, R.

Abstract

We present a model to explain why natural resource windfalls tend not only to lead to slower economic growth but to generate and reinforce authoritarian tendencies in Third World political regimes. In the model, the political elite's power over the populace is derived both from its own wealth and its control over the process of rent distribution among members of the populace (distributive influence). We show that resource windfalls enhance the elite's distributive influence. An increase in the elite's distributive influence generates hegemonic political regimes and exacerbates the decline of the economy. We present wide-ranging empirical evidence to support our theoretical insights.

Suggested Citation

  • Lam, R., 1999. "Dictatorship as a Political Dutch Disease," Papers 795, Yale - Economic Growth Center.
    • Handle: RePEc:fth:yalegr:795
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    Cited by:

    1. Bart Capéau & Philip Verwimp, 2012. "Dictatorship in a single export crop economy," Journal of Theoretical Politics, , vol. 24(2), pages 210-234, April.
    2. Thad Dunning, 2005. "Resource Dependence, Economic Performance, and Political Stability," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 451-482, August.

    More about this item

    Keywords

    DUTCH DISEASE ; POLITICAL REGIMES;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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