resource curse
The RResource curse really exists
The traditional economic view believes that abundant resources powerfully aid and promote the development of a country’s economy. At present, however many countries, which have a large endowment in resources, are facing an unexpected situation, which has been called the “resource curse”. Campbell (2013) says that the “resource curse” is the term used to describe the fact that countries with abundant resources often tend to have slower economic development than other countries with fewer natural resources. Contradicting the resource curse theory, the traditional view believes that abundant resources powerfully aid and promote the development of the economy. This phenomenon appears to be caused by three main factors: government interference, high levels of dependence on a particular resource and ecological damage. For exampleTo demonstrate, Iran is a developing oil exporting country, which owns huge reserves of oil. The financing, physical and social infrastructures of this country are mainly based on the revenue of oil exporting (Emami & Adibpour, 2012). However, since 2000, the government of the Islamic Republic has benefited less than before and they are not able to expand the positive influence of initial short-term growth after the discovery of the resource (Mohammad, 2013). Meanwhile, Australia also has the abundanceabundant mining resources, which have resulted in huge revenues. Mining has been the most important industry in Australia and has played the key role in promoting the development of their recent economy (Goodman, 2015). In Australia, (As noted, three broad dimensions of the resource curse can be identified socio-economic, political and ecological. There is evidence of all three in the Australian context with indicationsIn Australia, there is evidence that the mining boom is sharpening social divisionsdividing social classes, that illegal rentier corporate and governmental practices are on
The traditional economic view believes that abundant resources powerfully aid and promote the development of a country’s economy. At present, however many countries, which have a large endowment in resources, are facing an unexpected situation, which has been called the “resource curse”. Campbell (2013) says that the “resource curse” is the term used to describe the fact that countries with abundant resources often tend to have slower economic development than other countries with fewer natural resources. Contradicting the resource curse theory, the traditional view believes that abundant resources powerfully aid and promote the development of the economy. This phenomenon appears to be caused by three main factors: government interference, high levels of dependence on a particular resource and ecological damage. For exampleTo demonstrate, Iran is a developing oil exporting country, which owns huge reserves of oil. The financing, physical and social infrastructures of this country are mainly based on the revenue of oil exporting (Emami & Adibpour, 2012). However, since 2000, the government of the Islamic Republic has benefited less than before and they are not able to expand the positive influence of initial short-term growth after the discovery of the resource (Mohammad, 2013). Meanwhile, Australia also has the abundanceabundant mining resources, which have resulted in huge revenues. Mining has been the most important industry in Australia and has played the key role in promoting the development of their recent economy (Goodman, 2015). In Australia, (As noted, three broad dimensions of the resource curse can be identified socio-economic, political and ecological. There is evidence of all three in the Australian context with indicationsIn Australia, there is evidence that the mining boom is sharpening social divisionsdividing social classes, that illegal rentier corporate and governmental practices are on