Category Archives: Resource Politics

Crude Nation, Raul Gallegos [Review]

Cover for Raul Gallegos, Crude Nation

One of the punchiest descriptions of the “resource curse” comes from Venezuelan oil minister and OPEC founder Juan Pablo Perez Alfonso, who called oil “the devil’s excrement”. Yet the saying obscures more than it reveals. Perez Alfonzo’s pessimism about oil dated to an era before contemporary scholarship admits of an oil curse (the most recent resource-curse literature argues that the curse began in 1980 or so, and Perez Alfonzo’s bon mot dates to 1975). It is also the money from oil, not the properties of petroleum itself, that is said to be the cause of the curse, whether through the knock-on effects on productive sectors’ competitiveness through the Dutch Disease of currency appreciation or the conversion of productive competition into indolent rent-seeking through the corruption of political institutions by the replacement of taxation.

The biggest problem for Perez Alfonsz’s wit, however, is the simple fact that for much of the twentieth century, it was hard to say that Venezuela had been particularly cursed by oil revenues.

The statistics suggest that oil simply made Venezuela richer than it would have otherwise been (assuming that its neighbors supply a good idea of its counterfactual, non-oil-based economic outcomes). Similarly, Venezuela’s Polity score (a measure of democracy) show that the country was ranked most democratic by outside experts during periods of high oil income, and only began a slide away from a Polity score as high as France’s when oil prices entered a prolonged depression in the 1990s.

Since the leftist government of Hugo Chavez (and, since his death, Nicolas Maduro) came into power in 1999, however, all of this has changed dramatically. Today, Venezuela does indeed seem to have been cursed by oil wealth in some fashion, as Raul Gallegos documents in Crude Nation, a fine, readable survey of contemporary Venezuelan life, based on his work as a reporter in the country.

Continue reading

The Gendered Resource Curse

My co-author, Yu-Ming Liou, and I wrote this for the ISQ blog when we published our article on the gendered resource curse, “Oil, Autocratic Survival, and the Gendered Resource Curse,” explaining how oil rents can lead to worse political outcomes for women. But I don’t think ISQ ever used it, so I’m using it now.

Generally, increasing gender equality accompanies economic development. Figure 1 shows this relationship: as GDP per capita increases (rightward along the x-axis), gender inequality tends to decline (downward along the y-axis).

Social scientists and casual observers have long recognized that oil-rich countries like Saudi Arabia form an important exception to this rule. As Figure 2 demonstrates, autocratic countries that receive more than $1,000 per capita in income from oil and natural gas (shown in red) tend to have greater levels of gender inequality at nearly every level of income.

Why does oil income affect gender equality differently than other sources of wealth? We argue that this discrepancy results from a set of policies that oil-rich autocrats pursue to consolidate their hold in power. As we explain more below (and in the paper), the greater rulers’ dependence on political elites who value ideological fidelity, the more likely rulers are to enact the ideologically-informed policies they demand—even when those policies harm national welfare and make it harder to pay off supporters demanding more traditional forms of patronage.

Continue reading