Richard M. Auty, "Sustaining Development in Mineral Economies: The Resource Curse Thesis"
Publisher: Routledge | 1993 | ISBN 0415094828 | PDF | 284 pages | 1.08 MB
Natural mineral resources have long been viewed as desirable, yet growing evidence suggests that this "natural asset" can distort a country's economy to such a degree that it actually becomes a curse. Sustaining Development in Mineral Economies examines the interaction between macroeconomic policy and sectoral performance and prescribes clear guidelines for avoiding these dangers. Richard Auty highlights the drawbacks and the devastating effect they can have on developing economies. With reference to six ore exporters Peru, Bolivia, Chile, Jamaica, Zambia, and Papua New Guinea Auty outlines how problems can arise. He gives particular emphasis to the need to avoid "Dutch Disease" when an economy is dependent on a natural resource and its development falters due to depletion of the resource or a sudden drop in the price of the commodity. Auty turns away from the popular doctrinaire orthodox policies in favor of more pragmatic ones which will smooth the mineral cycle and promote competitive industrialization. He offers a systematic examination of the resource curse thesis, using an interdisciplinary approach that synthesizes neo-liberal, political, institutionalist and environmentalist approaches.
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