14 February, 2014

The Prohibitionist Curse

This from Matt Welch at Reason -
Economists specializing in international development have identified what they call the "resource curse": Contrary to expectations, an abundance of lucrative natural resources is often associated with poor economic performance. Although you'd think that sitting on trillions of gallons of oil would make your country richer, overreliance on a single sector tends to blunt development in others while inviting both corruption and laziness from those who control the taps. If a ruling class can safely siphon off profits from a guaranteed moneymaker, what incentive is there to liberalize or otherwise ignite broad-based prosperity?
Read the rest of this essay HERE.

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