I have mentioned a book, False Economy, by Alan Beattie a few times, but he has
ID: 1131930 • Letter: I
Question
I have mentioned a book, False Economy, by Alan Beattie a few times, but he has a great chapter in it subtitled "Why are Oil and Diamonds More Trouble Than They Are Worth"? He discusses something he calls the "resource curse", which is basically the idea that countries with major natural resources, especially gems and oil, end up poorer than countries without such resources. There are several reasons for this that he lists, mostly that the countries don't manage them well, and that developed countries generally get most of the wealth from these resources. I can't post the entire chapter, but I will include this paragraph:
"Minerals do not just help prolong civil wars, they also attract unwelcome attention from outside. One of the misfortunes of the beleaguered Democratic Republic of Congo (formerly part of Zaire, which was itself a byword for corruption and mismanagement in Africa) is to have deposits of coltan, a mineral used in the manufacture of mobile phones. It also has diamonds, copper, and gold. Several countries, including Uganda, were widely reported as having sent troops over the border to plunder the resources during the DRC's civil war between 1997 and 2003. Uganda's protestations of innocence were not helped by the fact that it was openly exporting minerals not naturally occurring in Uganda."
So, some questions for: What do you think of the "resource curse"? What do you recommend to combat it (if you think it exists)? What is your opinion, can be done to help the African countries with the most problems? Is this something that the developed world should help with/interfere in? If so, how? What is the developed world's responsibility? What about countries that are being ruled by thugs/thieves, etc?
Explanation / Answer
What do you think of the "resource curse"?
Resource curse occurs where a country becomes overly dependent on single or few natural resources. Thus, small fluctuation in such natural resources would make economy highly volatile and sensitive. Country lacks diversity.
What do you recommend to combat it (if you think it exists)?
Democratic system and people participation should be encouraged to combat such system. Government would become more accountable towards the public. Presence of elite politics makes system worse.
What is your opinion, can be done to help the African countries with the most problems?
Democracy should be patronized and promoted in African countries. These countries should be made corruption free.
Is this something that the developed world should help with/interfere in?
African countries can be helped with financial and non-financial resources. Developed countries should stop import from such countries where democratic and human rights are violated.
If so, how? What is the developed world's responsibility?
Developed world has responsibility to promote and safeguard democracy and human rights in African. Most of African countries are being ruled by the elite class which neglects general welfare of public. Developed world must make pressure on these countries to take care of public welfare.
What about countries that are being ruled by thugs/thieves, etc?
UN must take strong actions against such countries. Even military action can be taken to restore democracy in these countries. Import from such countries should be stopped immediately and economic sanctions can be imposed.