Typically having a
natural talent or gift is a great thing to have. Something that gives you a leg
up on the competition from the start is seen a very valuable thing to have
going for you in many cases. However, in case of countries with valuable
natural resources, theses natural gifts can lead to some unintended
consequences that can lead to problems for these countries. These consequences
can include weaker governmental infrastructure, poverty, and internal and
external conflict due to a number of pressures. African and Middle Eastern countries
are very susceptible to the problems that come with large natural resource
pools. I believe that until a country has strong government and infrastructure or
a diverse economy the natural resource will lead to problems.
Africa has always been rich in natural resources. However
many citizens of African countries continue to be steeped in poverty. In
countries like Equatorial Guinea or the Republic of Congo where
abundant oil, gas and minerals are abundant there is a massive disparity
between the classes (Casey)[i]
These natural resources have made a small group of
people rich, leading to widespread corruption and left the majority of citizens
poor. This corruption leads to states that do a terrible at providing health
care and education to their citizens. This creates a large amount of poverty in
the country. This makes it very easy for rebel groups to recruit. These people
are poor and unemployed and the prospect of combat and looting is more
attractive as a result
The
article states that the resource curse could strike Africa again because Sub-Saharan
Africa has been producing at a very high rate recently. According
to an African Energy Outlook report “30% of global oil and gas discoveries made
over the past five years were from sub-Saharan Africa, which includes countries
south of the Sahara desert” (Casey). At the same time only “290 million out of
915 million people have access to electricity”(Casey). That figure is rising
and will continue to. “Four out of five people in the region depend on firewood
and charcoal mainly for cooking due to the lack of electricity. The projection
is that figure will rise 40 percent by 2040” (Casey).
International
Energy Association (IEA) Chief Economist Fatih Birol has stated that “There is
huge potential both for oil and gas and, when it comes to renewables, huge
potential for hydropower, wind and solar, on the other hand, there is very
little energy for the people in Africa” (Casey). There are many factors that
link the extreme surplus of natural resources to the poverty of its average
citizens.
This is the biggest problem that citizens in countries
facing the resource curse deal with. The country is rich in minerals but there
are a number of factors that do allow this wealth to reach everyone. The infrastructure in Sub-Saharan Africa has
been severely negated to the point where most citizens’ do not have electricity
and are using firewood instead. To escape the curse these countries must push
through reforms and upgrade their infrastructures so that the wealth from the
countries natural resource can be spread throughout the country more equally.
The
IEA report said, touches on a number of major barriers to investment that are
afflicting Sub-Saharan Africa like “widespread oil theft (worth $5 billion a
year in Nigeria) to electricity tariffs across the region, which are among the
highest in the world, and corruption” (Casey). However IEA states that the
major issues are “the lack of investment and the second one is the governance
issue” (Casey). Birol goes on to say
that “There are investments coming into the region but our study show that
today $2 out of $3 in Africa is for export-related projects not for the
Africans”. “We don’t see the investments can come if the governance issue is
not fixed” (Casey). These statements show that efforts of these countries are concentrated
on meeting the needs of countries who consume their oil and other consumer
goods but not on the needs of their own citizens.
If
a country does not have a strong government system in place before it discovers
that it has a valuable natural resource then they are particular susceptible to
the resource curse. The income that the natural resource creates goes to a
private source. This makes it very easy for corruption to occur within the
countries government. Money to fund the government is not coming from the
country’s average citizens in the form of taxes. It is coming from the private
industries that control the valuable resource. This often means that the
government is listening to the interests of private industry. It also means
that the government has no incentive to listen to its citizens or even invest
in its own infrastructure. In order for countries to break free of the curse
they must invest in themselves and diversify their economy so that they do not rely
so much in contributions from these kinds of industries.
[1] http://fortune.com/2014/10/13/another-african-resource-curse-iea-says-energy-boom-not-helping-poorest/