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Confronting the Curse

The Economics and Geopolitics of Natural Resource Governance

By: Cullen Hendrix, Marcus Noland

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Paperback | 12 April 2014 | Edition Number 1

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Paperback
188 Pages

Age
22+

Dimensions(cm)
2.28 x 1.53 x 0.12

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The political economy of natural resource wealth poses two interrelated challenges for American foreign policy, both involving governance issues in countries that are abundantly endowed with natural resources.

The potentially negative impact of natural resources on development is captured in the phrase "the resource curse". The implications are the greatest for the commodity producers themselves, ranging from complications for macroeconomic management to political authoritarianism and, in the extreme, the precipitation of violent civil conflict. For US policy, the resource curse presents challenges with respect to coping with state failure and associated transborder phenomena.

The issues extend to broader geopolitics. Resource abundance confers financial and political power on producers. China's emergence as a major importer and investor in extraction, willing to accommodate authoritarian producers, exacerbates the challenge, potentially undercutting international efforts to encourage greater transparency and improved management of natural resource wealth. This issue is of particular importance for US policy toward Africa.

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