Primary goods make the world go round, and one that makes cars go round is platinum, which is needed in exhaust catalysts. It is a valuable precious metal, and 80 percent of all of the world’s...Show morePrimary goods make the world go round, and one that makes cars go round is platinum, which is needed in exhaust catalysts. It is a valuable precious metal, and 80 percent of all of the world’s platinum can be found in South Africa. Despite this, very few South Africans actually benefit from its lucrative platinum mining sector. In fact, this sector appears to cause more problems for most of the people in mining regions, from bad working conditions to air and water pollution. In this thesis I will argue that the lucrativeness of the platinum mining sector and its many negative externalities are related through the Resource Curse. I hypothesize that the owners of platinum mines will use a specific form of lobbying – cronyism, also known as the ‘revolving door’ – to influence members of the National Assembly of South Africa to adopt policies favorable to the mining sector. My research will focus specifically on the case of the Mineral and Petroleum Resources Development Act of 2002 (MPRDA).Show less
This thesis investigates the potential barriers to stability natural resource extraction has created in Eastern DRC. This is accomplished using resource curse and rentier state theory in a...Show moreThis thesis investigates the potential barriers to stability natural resource extraction has created in Eastern DRC. This is accomplished using resource curse and rentier state theory in a complementary fashion. This thesis brings forward a nuanced view of how resource extraction can 1) create barriers impeding economic growth, 2) be used as a permissive tool for armed groups to maintain rebellion, and 3) alter state-society relations causing a lack of accountability and transparency from the government, thereby causing corruption and patrimonialism. The existence of a wider ‘curse’ throughout Sub-Saharan Africa is also analyzed and found that the DRC’s case diverges from the regional average. This thesis adds to the practical complementary application of resource curse and rentier state theory, putting forward a nuanced view of the role of natural resources, contrary to the ‘curse’ put forward by mainstream media and academics.Show less
How is Venezuela’s oil dependency associated with the authoritarian rise of Hugo Chávez Frías? This question can be addressed in three varying pathways; short, medium and long-term explanations....Show moreHow is Venezuela’s oil dependency associated with the authoritarian rise of Hugo Chávez Frías? This question can be addressed in three varying pathways; short, medium and long-term explanations. This paper attempts to construct profound insights into the rise of Chávez as a populist competitive authoritarian leader. In order to comprehend the popularity of a leader with authoritarian characteristics, the political and socio-economic context must be understood. Chávez’s rise is often seen as a consequence of the collapse of the Punto Fijo system. However, this only provides medium-term explanations. Instead, it should be asked why the collapse of puntofijismo entail the rise of authoritarianism. To answer this question, this thesis commences its research by exploring the foundations of the pact of Punto Fijo. It finds that Venezuela did not consolidate its democracy and, as a consequence, during social upheaval, its democratic institutions withered when confronted with the rise of authoritarianism. Furthermore, it explores the social grievances that led to Chávez’s rise and analyzes the role of petroleum in his ascension to power. The findings conclude that the pact of Punto Fijo, which prevailed for 40 years, prolonged the existence of peace and disguised democracy in Venezuela because it was built on clientelist strategies that were supported by oil rents. The decline of the world price of oil in the 1980s meant the collapse of an unsustainable system alongside the Venezuelan quality of life which opened the route for the rise of an authoritarian leader, such as Chávez.Show less
The thesis critically examines major theories within the debate concerning authoritarianism, resource wealth and economic development in order to explain developments in Libya’s economy in the past...Show moreThe thesis critically examines major theories within the debate concerning authoritarianism, resource wealth and economic development in order to explain developments in Libya’s economy in the past 50 years. The literature review presents some perspectives regarding authoritarianism as a factor of economic stagnation and as a requirement for initial stages of economic development. With regard to resource wealth, the paper mainly relies on the resource curse theory and the staple thesis, which conceive resources respectively as a curse and a blessing. The focus of this paper is analysing how these two factors, namely authoritarianism and resource wealth, have remarkable effects on economic development through their debilitative effects on institutions, while arguing that effective and accountable institutions are fundamental in fostering economic development due to their contribution in setting a legal framework marked by a good rule of law, anti-corruption policies and regulations. The institutional question is therefore central to this paper, which presents the developmental prospects of the Libyan economy as being undermined by the country’s statelessness, perpetrated by weak institutions and lack of capacity. The conclusion is that the underdevelopment of Libya’s institutions, fostered by authoritarian rule and resource wealth, was the driving force in undermining Libya’s economic development.Show less
This thesis analyses how Angola and The UAE can utilize renewable energy to limit their dependence toward their fossil fuel sectors. The thesis maps out these countries relative dependene by...Show moreThis thesis analyses how Angola and The UAE can utilize renewable energy to limit their dependence toward their fossil fuel sectors. The thesis maps out these countries relative dependene by utilizing two typologies developed by IRENA. Firstly, the high exposure and low resilience category. These countries are defined as dependent on fossil fuel incomes, which account for more than 20% of GDP, while also lacking the fiscal and political instruments to alter their dependence. Secondly, the high exposure and high resilience category, defined as countries dependent on fossil fuel incomes, which account for more than 20% of GDP, but with the necessary income and capacity to manage the transition. This thesis concludes that the transition towards renewable energy is both an important and necessary tool for countries to limit their dependence on fossil fuels and promote economic diversification. The two case studies outlined highlight an emphatic case of how countries with various financial, as well as institutional and political capacities, can utilize these technologies effectively.Show less
The economic impacts of tourism have been discussed widely, but mostly through the Tourism-led growth hypothesis. That is why; this thesis will contrast two viewpoints that I apply to the tourism...Show moreThe economic impacts of tourism have been discussed widely, but mostly through the Tourism-led growth hypothesis. That is why; this thesis will contrast two viewpoints that I apply to the tourism industry, which are the tourism-led growth hypothesis and the resource curse approach. Tunisia will be a useful case study because it epitomizes the debate on tourism due to its colonial history and the fact that its mass tourism development was centred on the well-known ‘sun, sand, sea’ package. The positive economic impacts of tourism, but also the costs of tourism will be analysed by the means of answering the following research question: How has mass tourism influenced the economic development of Tunisia since the late 1980s?. The purpose of this thesis is to research and understand the development and the economic impacts of the tourism industry in Tunisia. The theoretical framework will give an overview of the literature regarding the various perspectives on tourism. The conclusions drawn from this research provide insights into the positive economic impacts of the development of the tourism sector in Tunisia. I will also demonstrate throughout my thesis that there are constraining factors to the economic development of the industry. This implies that Tunisia could upscale its economic benefits from this sector. The aims of the research are to give recommendations to Tunisian policy-makers, and to suggest further research on the cross-sectoral linkages between tourism and the agricultural sector.Show less
In many extractive economies natural resource has the potential to be detrimental to development through the disabling of the countries’ economies, and could be an incentive for mismanagement...Show moreIn many extractive economies natural resource has the potential to be detrimental to development through the disabling of the countries’ economies, and could be an incentive for mismanagement compared to countries without substantial natural resources (Holden 870). This phenomenon is known as the resource curse (Badeeb et al. 123). This study is a critical assessment of the resource curse theory with regards to the management of Venezuela’s state-owned oil company (PDVSA). It investigates the arguments of the resource curse theory that the resource abundance curses institutions through poor governance and promotes high government spending and corruption (Tornell and Lane 34). To achieve the aim of the research, this study reviews the rent-seeking model and the institutional model of the resource curse theory, and examines their applications to Venezuela’s state-owned company. Since the resource curse theory does not give sufficient explanation hence, institutionalism as a different school of thought has been used to complement the theory. The empirical findings and discussion indicates evidence of the rent-seeking model and institutional model in addition to the rationality of institutionalism. This in other words means that the resource curse theory cannot entirely explain the case of Venezuela’s state-owned oil company, PDVSA.Show less
Venezuela has one of the largest oil resource in the world and the oil sector is one of the most prone sectors to corruption. As the Corruption Perception Index shows is the level of corruption in...Show moreVenezuela has one of the largest oil resource in the world and the oil sector is one of the most prone sectors to corruption. As the Corruption Perception Index shows is the level of corruption in Venezuela also one of the highest of Latin America. In this thesis the level of influence of corruption on the resource curse will be assessed, specifically looking at the case study of Venezuela during the Bolivarian Revolution of Hugo Chávez. First, a theoretical framework is created in order to understand the relation between corruption and the resource curse. Second, a contextualization is provided through analyzing the Punto Fijo Pact which preceded the Hugo Chávez government. In this chapter increasing dissatisfaction of the Venezuelan population is shown, which together with the Caracazo massacre, created a platform for Hugo Chávez to gain power and popularity. In the third chapter, the theoretical framework will be applied to Chávez’s Venezuela and its consequences. Whereas the theoretical framework suggests that the resource curse is strengthened by corruption and thus will prevent a country with an abundant resource from developing, the case of Venezuela appears to be have proved the contrary. After analyzing the resource curse in Venezuela it shows that even though an abundant resource is present and corruption is still increasing, the oil revenues have allowed Hugo Chávez to fund several new socioeconomic programs which largely have benefitted the Venezuelan development.Show less
Bolivia has a failed past in terms of generating prosperity through resource abundances. The country held enormous reserves of silver, tin, and natural gas, and is now in possession of half of the...Show moreBolivia has a failed past in terms of generating prosperity through resource abundances. The country held enormous reserves of silver, tin, and natural gas, and is now in possession of half of the world’s supply of lithium, necessary in the fabrication of rechargeable batteries. The assumption is that the world will turn to electric vehicles in the near future, a shift that will increase the demand for Bolivian lithium dramatically. The phenomenon that a country rich in resources suffers from economic distress is called the resource curse. This thesis attempts to delve deep into the underlying causes of past examples of the resource curse in Bolivia, to determine whether there are similarities that can serve as recommendations to the present. Political stability is a prerequisite to avoid the curse, as well as macro-economic policy and diversification in the economic sphere. Bolivia is holding one of the treasures of the 21st century and needs to create the optimum circumstances in which they can extract, produce, and export their lithium in sustainable conditions for sustainable profit.Show less
According to the rational choice theory acting cooperative in collective goods problems is not rational because the benefits of cooperating do not outweigh the costs. The fact that some countries...Show moreAccording to the rational choice theory acting cooperative in collective goods problems is not rational because the benefits of cooperating do not outweigh the costs. The fact that some countries do cooperate in international collective goods problems means that something must be missing from traditional rational choice models. IR theorists have tried to explain how it is possible that some countries do cooperate in collective goods problems while others do not.This research examines oil wealth as an explanation for non cooperative behavior in collective goods problems. This explanation is derived from the realist school of thought. The results of this research show that in two different cases oil wealth is negatively related to cooperative behavior in collective goods problems. Also other explanations from realist, liberalist and constructivist theories have been tested and compared to understand the importance of any of these explanations when explaining state behavior in collective goods problems.Show less
Growing demand or declining availability of water makes distribution decisions based on water scarcity an increasingly acute problem across the globe. In my research, I focused on the question...Show moreGrowing demand or declining availability of water makes distribution decisions based on water scarcity an increasingly acute problem across the globe. In my research, I focused on the question whether water scarcity can lead to conflict. To investigate how water and conflict are connected I used two theories which are the most relevant when dealing with the connection between water and conflict, Water Wars theory and Resource Curse theory. I studied the Darfur conflict case and the Chinese environmental conflict case to find out if water scarcity can lead to conflict.Show less
