Political Economy of Resource Abundant States
نویسندگان
چکیده
Natural resource-abundance tends to undermine investment efficiency whereas a resource-poor endowment places a premium on efficiency. The type of political state provides the link between the natural resource endowment and the economic outcome. Developmental political states tend to be associated with resource-poor countries, albeit not exclusively so. Their governments pursue a coherent economic policy that maximizes social welfare. Resource-poor countries with developmental states industrialize early and follow a competitive industrialization model that sustains rapid and egalitarian growth. In resourceabundant countries, contests for rents generate factional and predatory states that distribute the rents through indirect means that distort the economy. The most likely result is a growth collapse, recovery from which may take decades. Paper prepared for the Annual Bank Conference on Development Economics, Paris June 2000
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