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 devils 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 Alfonso’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.
Continue reading “Crude Nation, Raul Gallegos [Review]”
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 “The Gendered Resource Curse”