Oil is Not a Curse by Erika Weinthal and Pauline Jones Luong

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Book Evaluation: Pauline Jones Luong and Erika Weinthal. Oil is not a curse: ownership structure and institutions in Soviet successor states (New York: Cambridge University Press, 2010)

In the book Oil Is Not a Curse, the authors test their hypothesis about the underlying causal mechanisms for resource curse through congruence procedures, and conclude by proposing an edge-cutting argument: whoever owns and controls the mineral sector affects the emergence of fiscal regimes that vary in terms of their ability to constrain and enable the state. In other words, mineral-rich states are "cursed" not by their wealth but rather by the structure of ownership they choose to manage their mineral wealth. The authors view ownership structure over mineral resources as an intermediary cause of institutional weakness. The form of ownership structure adopted by a resource-rich country shapes incentives for subsequent institution building, affects the institutional outcome (particularly the fiscal regime), and hence “the prospects for building state capacity and achieving long-term economic growth.” (p.9). By resting their argument on two bases, 1) the absolute immunity to direct external interference in domestic decision-making process, and 2) leaders’ own consciousness when constituting policy, the book challenges traditional resource curse wisdom by asserting that the structure of resource ownership functions as a determining variable that directs the pattern of resource management and its eventual welfare in developing countries. This argument does have its scholarly merits, but nonetheless is not flawless.
Contributions: A new variable and A New Measurement
One of the book’s most significant contributions to scholarship is its discovery of...

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...he elites' perceptions of societal expectations. The problem with this is that they ignore the gap between perceptions and actual facts. Political speeches contain more rhetoric than reality and thus, they provide shaky support at best for their argument and at worst provide a completely false impression.
To sum up, Oil is Not a Curse provides an enlightening discussion of how to manage nature resources in order to make them a cure rather than a curse. Though the base of the hypothesis presented in the book is shaky, it still is an inspired break from traditional wisdom. The authors contribute to scholarly understanding by discovering a default analytical anchor in conventional literature the acknowledgement of which allows for a new way in the future research of resource curse: the degree of variation and/or uniformity in resource ownership across time and space.

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