Natural Resource Curse

The “Natural Resource Curse” Explained by: Dylan Duran ID#83119997

The Natural Resource Curse is used to describe a correlation between countries rich in natural resources, such a precious metals or fossil fuels, and their susceptibility to the outbreak of civil war. As research reveals the underlying source of what may be a key factor in the cause of civil wars, natural resources seem to play one of the most significant roles. In the past ten years alone there have been over 17 conflicts linked to oil, gemstones, illicit drugs, and even timber; nine of these conflicts occurred in Africa alone. Although civil war is the result of a complicated amount of factors, this paper will explore the significant natural resource dynamic that has the potential of initiating a conflict and protracting the war.

First question anyone might ask is, “How could living in a natural resource rich country widen the risk of the outbreak of civil war?” From the first world point of view, many assume that countries have the ability to exploit the apparent advantage on abundance of resources and allow for perpetual economic growth. What differs between this point of view and the actuality of most of the countries in this predicament is that these societies tend to be more fragmented in their acceptance of government causing rebel groups to form thus increasing the pressures of civil war. Other research proves that these countries corruption in government and other assemblies cause a lack of property rights that would allow for effective manipulation towards a positive genuine savings. “Genuine savings is defined as public and private saving at home and abroad, net of depreciation, plus current spending of education to capture changes in intangible human capital minus depletion of natural exhaustible and renewable resources minus damage of stock pollutants (CO2 and particulate matter)” (Van Der Ploeg).

The most economical way of managing a country’s natural resources is utilizing the...