Critically assess the view that resource rich economies are rather poor, underdeveloped and politically unstable.
Research Question: Critically assess the view that resource rich economies are rather poor, underdeveloped and politically unstable. Offer examples in support of your analysis.
The assignment needs to be assessed against four criteria:
1. Content. You must deal with your topic in a well-rounded manner, touching upon all major issues and possible (or extant) analyses thereof.
2. Critical analysis. Once you have demonstrated your understanding of the various issues at stake, you are strongly encouraged to manifest a capacity for independent thinking, i.e., to come up with your own creative solution. Simple approval of current actions is to be avoided, in the absence of any arguments stating that no other solution would have been as optimal.
3. Presentation. Your argument should be coherent, well-ordered and full of examples. If a statement is made, the example used to substantiate it should be the appropriate one.
4. Literature review. References are welcome not only to theorists whom we will have studied in class but also to evidence of your own independent reading.
The paper needs to identify almost all the main issues logically linked and accompanied by the relevant critique. Evidence of substantial research and external reading well applied to the question. Confident exposition and discussion of relevant theory and appropriate examples.
In a way discuss the Resource curse that takes place in underveloped poor economies.
See an article below that highlights a few examples:
Nigeria – Oil generates over 95% of Nigerias export revenue. But while oil has boosted Nigerias economy dramatically, it has not enabled an improved standard of living for Nigerians. Moreover, militant groups have taken root in the oil rich Niger Delta of the country (largest one is called MEND Movement for the Emancipation of the Niger Delta), and are constantly disrupting the oil industry from really taking root in Nigeria. Estimates suggest that at least 1,000 people a year die from militant violence. This militant rise is due in part to the large amount of corruption that envelops the Nigerian oil industry.
Venezuela, which has the largest oil reserves in the world. Venezuela has had to deal with massive inflation (99% inflation in 1996) simply because of how dependent the Venezuelan economy is on oil prices, so when oil prices collapsed, so did the economy. Larger nations can get around this because their economy is dependent on so many factors from agriculture, to technology, to engineering, to mining, etc., so any one sector collapsing cannot dismantle the nation as a whole. Small countries dont have this luxury.The curse is not limited to oil, either.
3. Sierra Leone relies on mining for economic stability, with minerals being the main export, especially diamonds, which make up about 30% of the countrys export trade. As a result, financiers of the corrupt mining industry played a critical role in starting the Civil War in Sierra Leone.
Find atleast 3 4 examples of poor, unverdeveloped and politically unstabels economies that are extremly resrouce rich however rather poor. Choose to really anlaysis the roots of one – Nigeria.
