Resource abundance and economic development

Author: (English) Otis, Editor-in-Chief, translated by Zhang Xiaoliang
Publisher:
Publishing Date: 2006-12-01
Features:
Part 1 Introduction 1 Introduction and Overview
Part 2 Key Parameters of Resource-Based Development Models 2 Natural Resources, Capital Accumulation, Structural Change, and Social Stability 3 Sustainability of Resource-Driven Economies 4 Natural Resources, Human Resources, and Growth 5 The Social Foundations of Slow Economic Growth in Resource-Rich Countries
Part 3 Long-Term Prospects and Models of Resource-Dependent Growth 6 Natural Resources and Economic Development: Experiences from 1870-1914 7 Short-Term Models Comparing Natural Resource Endowments 8 The Political Economy of Resource-Rich Countries
Part 4 Development Trajectories of Resource-Rich Countries 9 Competitive Industrialization Under Resource-Rich Conditions: Malaysia 10 Growth Collapse in Dispersed Resource Economies: Ghana 11 Growth Collapse in Concentrated Resource Economies: Bolivia 12 Growth Collapse in High-Rent Concentrated Resource Economies: Saudi Arabia 13 The Waste of Scale Advantages by Large Resource-Rich Countries: Mexico and Argentina
Part 5 Policy Reforms and Lessons 14 Market Economy Reforms in Resource-Rich Small Countries: Costa Rica 15 Development, Capital Accumulation, and Economic Reforms in South Africa 16 Reforms in Resource-Rich Transition Economies: Kazakhstan and Uzbekistan 17 Reforms in Resource-Rich Large Transition Economies: Russia 18 Prospects for Resource-Rich Nordic Countries
Part 6 Conclusion 19 Conclusion: Resource Abundance, Growth Collapse, and Policy Responses Since the 1960s, resource-scarce countries have grown much faster in per capita income than resource-rich ones. By incorporating natural and social capital into the framework of growth drivers, we can see that although resource-rich countries possess abundant resources, they make fewer policy mistakes because social pressures force them to align their interests with the dominant poor strata and adopt relatively cautious policies. Resource-rich countries are more prone to creating political systems where vested interests groups will disrupt policy consistency to compete for resource surpluses. Over-reliance on primary product exports can also slow down industrialization, increase income inequality, and hinder skill accumulation. This book examines the role of natural resources in economic development. Using historical analysis and economic models, it demonstrates that economic growth collapse is not an inevitable outcome of resource abundance but is determined by policy, and argues for the importance of initial conditions for successful economic reforms.