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"Abundant natural resources can and
 should be a blessing, not a curse"

 
                                    Jozef Stiglitz
           The Resource Curse Revisited


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Deliberative Democracy

"In its simplest terms, deliberative democracy refers to a conception of democratic government that secures a central place for reasoned discussion in political life." Read more...

 

“Taken as a model for how groups should make collective judgments and decisions, the ideal of deliberative democracy is inherently ambiguous".   Read more...



Decentralisation

Decentralisation has positive effect on citizen participation and bureaucratic efficiency. Read more...


Link between decentralisation and poverty reduction is ambiguous. Read more...
 

"The critical issue is not whether fiscal decentralisation should occur -- it is happening and will continue to happen.. The key is how to determine an appropriate level and how to structure a reasonable balance between local autonomy and central control". Read more...









 
 Understanding the Resource Curse



Resource curse refers to the “inverse relationship between high natural resource dependence and economic growth rates”. Although in early 60th scholars have argued the direct relationship between resource abundance and economic development, empirical evidence discarded these hypotheses: per capita incomes of resource-poor countries grew three times faster than that of resource-rich countries between 1960 and 1990; per capita GNP in OPEC members decreased by 1.3% per year, whereas non-oil developing countries experienced an average 2.2% annual growth for the period from 1965 till 1998. This and other data have illustrated that resource abundance per se does not lead to economic growth. Moreover, natural resource dependence may, actually, impede economic growth; it can also result in increased inequality, decreased child welfare, and greater vulnerability to economic and political shocks.

Early theories on relationship between extractive industries and economic growth

Covering Oil - a Reporter's Guide to Energy and Development 

"The Political Economy of the Resource Curse" (and other articles on resource curse) 




     Combating the Resource Curse



The resource curse is curable. A number of scholars attempted to explain the relative success of some countries in overcoming “resource curse”. These explanations can be divided into three groups. First set of arguments refers to conservative macroeconomic and fiscal policies when government accumulates foreign reserves, does not spend budget surplus on deficit, and tries to avoid external debt. Second set of explanations emphasises the role of privatising natural resources to domestic businesses in tackling the resource curse. It is believed that private domestic ownership “would foster institutions that more effectively constrain state leaders, encourage them to invest in institution building, and enable them to respond more successfully to commodity booms and busts”. And, finally, the third set of arguments focuses on institutional quality (rule of law, bureaucratic quality, and the level of government corruption) to explain how some countries managed to avoid resource curse.

"Why  did Indonesia overcome the resource curse?" 

"Combating the Resource Curse" 

"Prelude to the Resource Curse" 

"Beating the Resource Curse: the Case of Botswana" 

  

   Participation, Citizenship, Social Capital



“Democracy” as a way of organizing the state has come to be narrowly identified with territorially based competitive elections of political leadership for legislative and executive offices. Yet, increasingly, this mechanism of political representation seems ineffective in accomplishing the central ideals of democratic politics: facilitating active political involvement of the citizenry, forging political consensus through dialogue, devising and implementing public policies that ground a productive economy and healthy society, and, in more radical egalitarian versions of the democratic ideal, ensuring that all citizens benefit from the nation’s wealth”. Read more...

“The study of citizenship began as the study of political rights and democratic governance within Western politics and philosophy. Today however, it encompasses a broader sociological perspective highlighting that a universally shared concept of citizenship is further away from practical articulation and understandings of the concept than ever”. Read more…


“The world contains multiple types of individuals, some more willing than others to initiate reciprocity to achieve the benefits of collective action. Thus, a core question is how potential cooperators signal one another and design institutions that reinforce rather than destroy conditions cooperation”. Read more…


Although a very laudable reorientation of development practice, participation has shown its limitations, especially in terms of its ability to avoid the shortcomings of development projects it was supposed to address. Many participatory projects ended up replicating the same errors as top–down projects. In particular, the basic problem of not being able to arouse popular participation plagues most community initiatives. Understanding participation and its different mechanisms is essential to analyse the pitfalls of participatory projects, and to improve their design. Read more…


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