Introduction
This field paper will discuss the controversy on the existence of ‘resource curse’. Resource curse is an economic paradox which states that countries and regions having an abundant base of natural resources, especially non-renewable and point-sources are likely to have worse performance in economic development and economic growth. This term was first raised in the book ‘Sustaining Development in Mineral Economies: The Resource Curse Thesis’ (Auty, 1993). He describe in this book that country with rich natural resources, like Bolivia, Peru and others, failed to take advantage of this preponderance. Contrarily, they have lower economic growth and poorer disciplined development policies. In one word, they perform worse than less endowed countries. (Auty, 1993) It is still controversial in the academic world that if resource curse exits or not. This paper will summarize the literatures into three sectors: resource curse exist, resource curse does not exist, and resource curse exist under certain conditions.
Controversy on Resource Curse
1. Resource Curse Exist
Auty (199...
Being the richest in potential export resources, Guatemala is not utilizing its natural resources to help increase the economy’s standings. Some of these resources include oil, timber, nickel, gold, petroleum, hydropower, rare woods, and fish.
Although the contribution of mining to GDP has decreased over the last few decades, Honduras is now presented with an important opportunity to explore its untapped mineral potential. Currently, there are only seven metallic mines and about 300 non-metallic mines in Honduras. Yet, the country has significant reserves of iron oxide, and there are about 160 pending permit requests for exploration and feasibility studies. The revised Mining Law passed in April 2013 provides an improved framework to promote investment in the sector. In addition, offshore oil exploration is underway, and a commercially viable discovery could significantly improve the trade balance, encourage foreign investment and bolster government revenues, all of which would help to reinforce macroeconomic stability. However, for extractive industries to effectively promote long-term growth and sustainable social development appropriate transparency and accountability mechanisms must be in place. In light of Honduras fragile ecology, environmental protection must also be accorded a high priority. Finally, high-value extractable resources have a history of fomenting instability in developing countries, and steps must be taken to ensure that any new resource development does not further undermine the rule of
The political power has had enormous affect to the Latin American economy. Most of the countries in the Latin America remained colonies for over a long period of time; therefore, they were controlled by the Europeans power. These colonies never thought of development of the Latin American countries, rather all wealth from the colonies was taken out to the home country. This situation is similar to other colonized continents such as Asia and Africa. Almost every colonized country in the world is still in the process of development. These countries were never benefited economically from the colonizers. Therefore, the historic imperialism is still harming countries in the Latin America as well as they are still underdeveloped. According to Marxist theory “The colonies were used as places to invest surplus capital and sell goods from the colonizing countries and as sources of cheap raw materials and cheap labor.”(P165) Therefore, the investors will always get high benefits from their investment; however, the raw materials will get low prices for it. Hence, still Latin American countries face various problems due to the excessive use of natural resources and due to late from the Europeans
We are largely dependant on copper mining for most of our national income is derived from that activity..The are where we mine are mostly known for the copper and are called the copperbelt.The area also has a great potential for farming but due to the pollution and the large employment intake of the mines,the farming in the area has been subdued. To such lower levels.The people in the area are not very concern about what will happen next should the mines come to an end. The mines have also been working on programmes that will help the inhabitants to live on even after the end of the mines hence the creation of a lot of sports facilities,hospitals and funding a lot more other non mining The people in the area are not concern of the produce in the mine apart from the fact that the mine will employ them.they only get to get the produce from the other products thqt are manufuctured using
Nothing speaks more to Latin America 's continued dependence on other nations than a new superpower looking for resource 's. China, much like the USSR of the past has turned to Latin America in search of an economic boost and legitimacy on the world stage. Jorge I. Domínguez writes ”China has disproportionate leverage over Latin America in trade negotiations”. For nations who have existed for almost as long as the USA why are they still so underdeveloped and dependent on the rest of the
According to statistics, there are several benefits and disadvantages of mining related to the economic sector. Some of the main benefits of mining are that it leads the economy to expansion and decreases poverty. It also helps in improving and increasing employment by proving more jobs. Moreover, the economic demand for goods and services makes the economy of local communities thrive. However, when it comes to justice, there are many things in which the industry sector falls behind. For example, “Mor...
The challenge of Cuba’s developing economy is low productivity and labor force of the economy as a whole. The Miami Herald revealed that, “Granma and Yzquierdo indicated a list of reasons for Cuba’s economic inactivity, such as deferrals in projects to broken contracts and “the low productivity and deficiency of the workforce” along with the economic circumstances in Latin America in addition to the rest of the world”. Cuba’s GDP growth for first part of 2013 is assessed at 2.3 percent, compared to 2.1 percent similar time for 2012 Cuba practices a unique approach of calculating GDP that embellishes the number compared to other countries”. (Tamayo, 2013) Negative radical policies have remained in decline in its productivity of the developing economy, and the most significant challenge encountering established order is how to incentivize the market toward the increasing development in production and productivity. All goods and services make up an economy real Gross Domestic Product (GDP) is produced from labor and capital resources. The determinants of economic development are the accessibility of economic resources (quality of labor and capital) and productivity factors (human capital and technology). Cuba can be managed by encouraging sustainable consumption and production, managing the natural resources for the benefit of ecological and social expansion. Provide some form of urgency towards human development, with the eradication of poverty as its crucial objective. Human development success depends on the extent by utilizing the opportunities created through globalization, diminishing its negative effects. In addition, Cuba can b...
Third world countries have the name underdeveloped countries, but it is better to call them over-exploited countries. Developed countries are implementing several foreign policies and trading blocks that have nothing to develop the less developed countries; on the contrary, they exploit the development and block growth in many ways such as imperialism, globalization, and capitalism. These practices of developed nations prevent third world countries from development. The countries that have advanced technologies and standard economical status are considered as the developed countries. Besides their growth, these countries have started taking advantage of third world countries that are also less fortunate in terms of economy and technology.
Dr. James seeked that the Greek Philosophy is just stolen Egyptian Philosophy. Way before it actually reached Athens, the teachings called the Egyptian Mysteries got to other lands first. The history of the Greek philosophy was a compilation and plan executed by Aristotle at his school. Greek Philosophy as it was called and it different to the Greeks as the way they live. The period between 640-322 B.C. was the time period of Greek Philosophy and its external and internal wars was just not suitable for producing philosophers.
The authors collected and analysed data from 71 mining areas in Australia, and then they use statistical method to find relationship between gross value of mineral production and quality of life indicators. They found that mining activities have positive impact on regional income, employment, communication access and education. In contrast it has negative impact on life expectancy. The main limitation of this paper is that there is no causality test between all of life indicators as an independent variables and mining activity as dependent variable. In this case the authors only focus to show positive or negative relation between dependent and independent variables. They main recommendation to solve the problems is to do causality test between variables. Furthermore they also suggest to provide comprehensive measurement on other indicator. The result of this paper have strong connection with the Garmett’s article. This paper will be a good source for my article
Case study on Brazil is used in this article to state that GDP does not give a true representation on the development status of a country.
Firstly, there is a need to understand what is meant by development. It is defined as “the continuous and positive change in the economic, social, political and cultural dimensions of the human condition, guided by the principle of freedom of choice and the limited capacity of the environment to sustain such change.” (Sharpley, 2003: 8-7). Sharpley (2000) explains how theories of development have progressed; Firstly the ‘Modernisation Theory’ (1950s- 1960s), in which societies are seen to switch from traditional to modern only through economic growth. Next is the ‘Dependency Theory’ (late 1960s), this takes into account the historical and economic structures of developing countries, distribution of benefits, social players such as local elites, state interests and private companies, and situations in which an economy and development of a country can be conditioned by a more dominant country (Santos, 1970). The ‘Neo Classical Counter Revolution theory’ (1980s) was made to fit in with global events such as the economic depression, and development policies that build upon dependence on free market. Finally, ‘Sustainable development’ (late 1980s) is the theory that creates the encouragement for development of many developing countries. This theory aided by government policies of backings, tax breaks, and incentives. These theories have developed through growing knowledge of evolving processes, and dismissal of past theories (Sharpley, 2000).
Nearly 50,000 people, including 30,000 children, die each day due to poverty-related problems and preventable disease in underdeveloped Countries. That doesn’t include the other millions of people who are infected with AIDS and other incurable diseases. Especially those living in Sub-Saharan Africa (70%), or “the Third-World,” and while we fight to finish our homework, children in Africa fight to survive without food, or clean water. During the next few paragraphs I will give proof that poverty and disease are the two greatest challenges facing under developed countries.
The country of Brazil is comprised of 159 million people (1997). There are estimated to be around 150,000 indigenous people that live in the Amazon jungle. One third of the population works in agriculture and tends to have lower incomes and worse living conditions than the rest of the population. Mining is also a large industry and Brazil is the leading producer of iron ore. Many of these colonies are run by foreign companies who employ both workers from their own countries and native people. The unemployment rate runs about 7.5% and the literacy rate runs about 70%. However, it is a known fact that many of these numbers are made up by the Brazilian government. The real literacy rate runs around 30-50% and the unemployment rate is certainly higher.
Webster defines fate as a “ a power thought to control all events and impossible to resist” “a persons destiny.” This would imply that fate has an over whelming power over the mind. This thing called fate is able to control a person and that person has no ability to change it.