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Natural resource curse thesis proposal

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Some evidences claim that there’s an adverse relationship between natural sources and growth. So sources were known as a curse by many people researchers. But it’s not necessarily true. A rustic can eliminate this curse if you take some steps. The guaranteed earnings from natural wealth can be used a resource of investment as opposed to a supply of public disbursement. The transformation of natural assets into manufacturing capital can result in break the curse. The nation may use the resource rent to build up the infrastructure. The nation can with rent in numerous sectors like manufacturing, health, education, growth and development of law and order, human legal rights.

Natural resource curse thesis proposal the dependence on natural resource

When the country can manufacture goods inside a large volume, it may export them. Earnings from exports will lessen the reliance on natural resource. The federal government can launch an appropriate taxation system. It’ll establish the connection between your ruler and also the public. Whenever government will require money in the citizens, it’ll have to describe the incomes and expenses of the nation. It’ll provide accountability and transparency.

The Federal Government can share the revenue using the residents. When the local people was handed the ability to deal with sources of the nation, it not just motivates lengthy-term investment but additionally takes pressure from the shoulder from central government, as well as helps you to alleviate poverty. With the proper control over natural sources, a government can sustain the welfare of the nation can enhance the existence standards of those living underneath the poverty line and therefore result in the natural sources like a blessing.

‘The Middle East won’t develop until its oil reserves run out’. Discuss.

Most countries in Middle East, if not completely, possess some things in keeping for example monarchy system, oil reserves, no accountability and transparency, lack of democracy, repressive. Economy of those countries depends on their oil earnings. They do not depend on tax from the people, they are able to avoid accountability along with other responsibilities to folks. Due to oil being present there in plenty and also the earnings the federal government extracts from selling these to other areas around the globe being ample to allow them to run their country, the federal government don’t feel it vital that you build manufacturing industries within their country.

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But sooner or later lower the road this oil reserve can come for an finish. Then these countries will have to find other causes of earnings and just they will truly start thinking to construct other service and manufacturing industries. This might open the doorways web hosting sector. Once the private sectors thrive, it’ll bring investments from various places that will and in turn create lots of job possibilities. Government will need to invest to add mass to hr to deal with interest in skilled people. Consequently you will see a literate society.

The rulers will loose legislation blocks to investment, private employment, exorbitant regulatory barriers, poor enforcement of business contracts and dispute resolution, taxation barriers. The multinational companies (apart from Oil companies) is going to be drawn to these countries to grow their companies. Huge investment can come which will lead to the introduction of the countries.

Another factor, when rulers will tax the citizens, they’re going to have to describe their policies, incomes and expenses. Consequently accountability and transparency will develop. It can result in democracy. Once the rulers will begin considering the welfare from the public, it can help to sustain the democracy and development of the nation.

The instance of UAE could be taken. It’s expected the oil reserve of UAE will go out in two decades. The rulers realized this. So that they are attempting to proceed to other sectors, for instance tourism. Now Dubai is among the best tourist places. Each year countless vacationers from around the globe visit Dubai. Government are generating a large amount of revenue from tourism sector.

Dubai is attracting the company companies in the civilized world. Presently Dubai is among the best places for business. Many of the worldwide companies have branches in Dubai. Thus the federal government of UAE is reducing dependence from oil.

Another example is Kuwait. They’re using the rent from oil for off-shore investment. By doing this they are attempting to stabilize the economy.

As lengthy because the countries of Middle East can get revenue from oil, they’ll remain averse to create changes. They’ll remain in vicious loop before the oil reserve is going to be depleted. The earlier they understand that oil reserves aren’t limitless, they’ll proceed to the best way to development.


Though a few of the evidences identify natural sources like a curse, however the sources are not really a curse. Mismanagement from the sources means they are a curse.

But there’s no temporary option to get away from the curse. Oil in the centre East is really a sensitive issue. Once the Government will choose the resource to add mass to the living standards of citizens, they’ll transform right into a good government from authoritarian rulers. Worldwide pressure and internal pressure can shake the rulers. Speculate of getting a sizable oil reserve, the rulers can avoid all types of pressure.

This paper has highlighted all of the details associated with natural sources. Based on Kirk Hamilton and Giovanni Ruta, (2006) “Whatever the amount of government, good management is really a precondition permanently performance. Natural sources are “governance-intensive.” Seem control over these natural sources supports and sustain the welfare of poor countries, and the indegent in poor countries, because they progress the expansion ladder.”



  • Moore, M. (2004) Worldwide Political Science Review. Revenues, Condition Formation, and the caliber of Governance in Developing Countries, 25(3), pp. 297-319
  • Sachs Jeffrey D. and Warner Andrew M. (2001) European Economic Review. Natural Sources and Economic Development The curse of natural sources, 45, pp. 827-838
  • Wright, G. and Czelusta, J. (2004) WHY ECONOMIES SLOW. The Parable from the Resource Curse, 47(2), pp.6-38

Online Sources

  • Bannon, I. and Collier, P. (2003) HUMAN Peace Of Mind In CONFLICT SITUATIONS. Natural sources and violent conflict: options and actions [Online]. Pp.242-245. Offered by journals.upd.edu.ph/index.php/kasarinlan/article/download/672/675> [Utilized second The month of january 2010]
  • Hamilton K. and Ruta, G. (2006) Atmosphere Matters. From Curse to Blessing Natural Sources and Institutional Quality [Online]. pp. 24-27. Offered by siteresources.worldbank.org/INTENVMAT/64199955-1162240805462/21125342/9FromCurse.pdf> [Utilized second The month of january 2010].
  • Humphreys, M. Sachs Jeffery D. and Stiglitz Frederick E. (2007) Getting away the Resource Curse. USA: Columbia College Press. [Online] Offered by books.google.com/books?id=8NbpM_tz_BAC&source=gbs_navlinks_s> [Utilized second The month of january 2010].
  • Sachs Jeffrey D. and Warner Andrew M. (2001) European Economic Review. Natural Sources and Economic Development The curse of natural sources, 45, p. 829

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