The
resource curse and its international implications are always shocking to me
since from an outsider's viewpoint, it is logical that highly profitable
resources would benefit a country rather than deter their development. However,
as we have discussed in class, a country's possession of oil or another
valuable resource tends to have a negative effect on their economy. This can
create governmental corruption if the profits tend to go solely to the elites,
an unaccountable government since most of their revenue is not based on taxes
so they do not have to be responsible to their people, and weak government
systems. One of the suggestions in the Ross article is for countries in the
international community to become more involved in encouraging resource dependent
countries to diversify their trade and to hold their governments accountable.
Ideally if a country's trade prospects on the international stage were
compromised by a domestically corrupt government, a country would be highly
incentivized to manage their resource industries. This, however, is not the
case. This proposition calls my attention to the role of the international
community in regards to resource industries. Is it the responsibility of the
international community to hold these governments accountable?
One
argument for greater international responsibility is the direct or indirect
impact of conflict or increased poverty as a result of weakened governments.
Governments that are less accountable to their citizens tend to provide few
social services and infrastructure which decreases the citizen’s trust in the
government. Less trust among the people makes conflict more likely since many
will be left in extreme poverty and do not feel they can rely on their
government for basic services. As we have discussed in class, this may also be
a tactic of corrupt governments since it is easier to distract citizens from
the problems of the government if they are fighting one another.
While it can be argued that these conflicts do
not affect the international stage, but they can have major implications on
international aid efforts, refugee populations fleeing to surrounding
countries, and the potential for larger conflicts to arise between nations.
Conflicts can also have major implications on international trade. As we are
seeing in the Ukraine conflict, Russia’s power over major energy sources is
affecting not only Ukraine but also many European countries. Just as the
current conflict is creating huge effects, conflicts in resource rich areas
like Saudi Arabia, Afghanistan, and others can have impacts on the
international markets.
There are many reasons why countries are not
interfering with corrupt governments or that there has not been the creation of
international standards regarding trade from corrupt nations. The most obvious
and widely used is the need to respect a country’s sovereignty and ability to
run their government the way they see fit. While this is both reasonable and
necessary to avoid conflict, it is used often to justify a country’s actions
when the ultimate goal is to obtain greater economic gains. In my opinion, the
most common reason for noninterference is that other countries, particularly
developed countries, want to reap the benefits of the resource being on the
global market without worrying about how it is affecting the people of the
country or taking human rights issues into account. This can be seen in the
current crisis in Ukraine. Due to Russia’s control over energy sources, many
countries in Europe are being affected by the current issue and fear conflict
with Russia.
Ultimately, the international system is ruled by
trade and economic gains and is usually driven by the needs of developed countries.
The internal effects of resource rich countries are rarely taken into account,
though with depleting energy sources and many internal conflict creating
effects on the international stage, perhaps international organizations will be
pushed to create higher human rights and governmental standards from countries
high on resources and low on development.
I like your point at the end "the internal effects of resource rich countries are rarely taken into account." It is about time developed countries recognize the benefits of valuing the resource rich countries in ways other than just their raw resources. We send money to help refugees and eradicate diseases, among other things, but supporting their economic development through less selfish trade policy would be interesting to see.
ReplyDeleteI think this is a question that the international community, and developed countries in particular, is at some point going to the have to face. You make some good points, especially about how developed States can use the idea of respecting the sovereignty of struggling resource-rich States as an excuse not to interfere, when their interests actually lie in acquiring the resources that they have.
ReplyDeleteI think you bring up a really good point. I wonder if a situation like this could balance out the corruption and benefit the international economy as a whole. Maybe having international whistle-blowers to point fingers at corruption could be a smart idea too- so we would have people aiding the resource cursed countries, but also pointing out if they have gone too far.
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