Is There Hope for a Solution to the Resource Curse?

Resource rich countries, although prosperous and dripping with income, are strikingly worse off than say a country with little to offer. Many politicians and political scientists debate the idea of the resource curse all the time. The idea that conflict comes from a country being rich in a particular natural resource, such as oil or minerals seems to be such a non-debatable idea, but some have their doubts. The proof is there though and the correlation between conflict/war is undeniable. When a country is so dependent upon one thing to provide all the countries wealth, there is no motivation to strive to diversify means of trade, income or economic prosperity. Countries lack institutions and the means to combat corruption and embezzlement. There are certainly other factors leading to conflict in States, but wealth from resources is an undeniable leader.

                One of the leading factors to the resource curse is the fact that these countries that fall to it have poor institutional arrangements and weak governments. The countries may be prosperous, but do not put forth the efforts to provide proper health and education for all of its citizens. There is a question whether a country with a strong government and successful institutions would still fall to the same problems. Does that much wealth really destroy a country? In this case, I believe that there would need to be strong faith in honesty and reflective properties of all aspects of the resource. Greed and embezzlement seem to start the larger problems involved with the curse. Any country can fall to the problems associated with the curse, but developing countries seem to get hit the hardest with the side effects.

                There is hope though, although some may not agree.  The first step is to make every aspect of monetary value and trade traceable and accountable. If oil companies for example are responsible for reporting how much is sold and purchased between countries and at what cost, there will be less room for embezzlement and off shore funds. If a country is responsible for reporting its wealth, the public will also be aware. I believe, especially in somewhat democratized states, that knowledge of wealth is a strong asset. Citizens can join together and demand more relief, health care assistance and educational institutions be provided.

                Although there are many proposed solutions to the resource curse, it is essential to have government and citizen cooperation and communication. If the two parties can agree and decide how to manage the resources together, then countries are less likely to fall to the evils of the resource curse. Resource abundance should be utilized to encourage better construction of other aspects of a country. Surrounding nations can also do their part to encourage economic diversification from the resource rich countries. They can encourage trade on other things, but also put requirements from the resources they are purchasing. If surrounding nations make their own rules for those countries selling the resources, they will have limited options on how to handle this. If the resource rich countries don’t have anyone to sell too, their wealth will diminish. It is important in any conflict to always incentivize change. It has come to a give and take type of scenario. Countries such as the United States, who are huge consumer of resources, should feel partly to blame for the resource curse occurring in many developing countries. As a wealthy and dependent nation, who also strives to keep peace around the world, we should assist these countries by making it a more accountable and procedural process when trading resources.

                There will always be corruption, embezzlement and poorly manage countries but the fact is, the resource curse can be combated. There are solutions for most every problem and the right combination of support from developed countries, citizen demands and governmental restructuring can stop the problems associated with an abundance of resources. Resources should be assisting in development not halting it.