The Resource Curse: Making the poor even poorer
The resource curse that
has plagued developing countries throughout history is a constant threat
whenever valuable resources are found. Many authors, such as Michael Ross,
argue that the curse itself stems as a result of irresponsible governments and
poor financial decisions. While these are true, they point to a bigger issue
that seems to be at the heart of the resource curse. These countries that
experience financial and political collapse as a result of discovering valuable
resources always classified as “developing.” Rarely is there a scenario in
which an independent, developed nation discovers a substance of value and the
results are devastating. Usually, the opposite happens, and the economy
flourishes.
The issue, therefore, is that valuable substances are a
curse that make poor nations even poorer. Like Africa has seen time after time,
with rubber, oil, gold, and diamonds, an unstable or nonexistent government cannot
be an effective actor. The combination of valuable resources and unstable
governments is something that begs for a solution, but unfortunately, a
solution is not likely to arrive. The natural resources that are found in a
nation are the sole property of that nation. Therefore, we cannot simply take
away the natural resources of these nations to avoid economic trouble. As for
telling other governments how to function and use the natural resources, that
can only work as far as they are willing to take the advice of others. More
often than not, the leaders of a developing nation will exploit all the resources
for their own benefit until the resource runs dry, the economy collapses, or
both. It is impossible for an international agency or entity to plan for the
discovery of a valuable resource, therefore we cannot simply expect an issue
and deal with it accordingly.
The best approach to resolving, or at least remedying
this issue is through a series of long term actions that would hopefully allow
these developing nations to make intelligent decisions that will benefit that
common people which, in turn, will benefit the governments. First, there should
be international advisors to nations struggling with resource management. If a
nation is on the verge of collapse, or even on the verge on discovering and
exploiting a resource, someone should be there to act as a sort of financial advisor.
Educating these developing nations is the first step towards a solution.
The next remedy solution, which
is essentially an ultimate solution for any nation, is to promote democracy in
the region, hopefully sparking the movement towards more democratic nations. Mitchell’s
Carbon Democracy hits the nail on the
head with describing the only legitimate solution to ending the tragedy that
befalls on poor nations that stumble upon sudden wealth. With such a divide
between developed and developing nations, there are really only two options for
what can occur as a result of such a discovery: economic success or civil war. It
is ultimately a choice that must be made by the developing nations themselves.
They can either ignore the signs from the past and take advantage of an
opportunity, or they can exploit their land and devastate their country.