By Professor Thad Dunning
This ebook demanding situations the traditional knowledge that typical source wealth promotes autocracy. Oil and other kinds of mineral wealth can advertise either authoritarianism and democracy, the booklet argues, yet they accomplish that via diversified mechanisms; an figuring out of those assorted mechanisms can assist elucidate whilst both the authoritarian or democratic results of source wealth should be really powerful. Exploiting game-theoretic instruments and statistical modeling in addition to specific nation case experiences and drawing on fieldwork in Latin the United States and Africa, this e-book builds and exams a idea that explains political edition throughout resource-rich states. will probably be learn by means of students learning the political results of normal source wealth in lots of areas, in addition to via these attracted to the emergence and endurance of democratic regimes.
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Extra info for Crude Democracy: Natural Resource Wealth and Political Regimes
A relatively poor group of citizens can thus, at least in principle, use its numerical advantage at the ballot box to redistribute more private income away from a rich minority than this minority would like, as indeed is implied by the historical attempts of elites to create democratic institutions that try to limit this potential (Beard 1913). Much of the recent political economy literature therefore emphasizes that the actual or anticipated extent of economic redistribution can shape the incentives of elites to support or oppose democracy (Acemoglu and Robinson 2001, 2006a; Boix 2003).
15 What determines whether a resource-abundant state is also a rentier state? The main factor (though by no means the only, as discussed later) is the type of natural resource in question: not all natural resources readily produce rents for the public coffers. Natural resources such as crude oil or kimberlite diamonds are geographically concentrated, generally capitalintensive in production, and pose high barriers to entry for many private actors; they are, in turn, relatively easy for the state to tax, and taxing these sectors generally does not involve separating a wide swath of citizens from their private income.
Similarly, after the collapse of the nitrate sector and the rise of copper between the First and Second World Wars, revenues from copper came to ﬁnance up to 40 percent of annual government expenditures but constituted only between 7 and 20 percent of GDP (Moran 1974: 6). During Ecuador’s oil boom of the 1970s, the national budget grew 21 percent in 1974, 32 percent in 1975, and 32 percent in 1976, much faster than the overall growth in economic product (Martz 1987: 51, 159, 404); in comparative perspective, Ecuador during the boom was a resource-abundant country but not a resource-dependent one.