In
class we discussed the resource curse, the role oil companies play in it, and
what the role of other countries to help fix the problem. From my
understanding, the resource curse occurs when, in an under developed country,
one resource is abundantly available and the main source of money for that
country. This can lead to many issues for development, government and conflict.
Oil
is often the natural resource associated with the resource curse. Oil is exported
out, and those countries importing then have refineries in order to make the
oil usable. These countries place a high demand on these cities to get the oil
since it is used in such high quantities, which is likely a contributing factor
to the resource curse. Possibly to alleviate some of this pressure, oil
importing countries could import from multiple countries instead of only a few.
Even though if all the importers spread it out, the exports would end up to be
the same, a schedule could be implemented so that the exporters do not have to
export such high quantities so often. Another possibility for alleviation could
be a cap on exports or a cap on income taken in on the export of one resource.
This would incentivize diversification of exports so that these countries are
not so heavily reliant on just the one resource. Diversification would push the
exporting countries to produce more crops or other resources that could be use
as exports and thus alleviate stress on producing such great quantities of just
one resource. This would also help with avoiding depletion of the resource. Oil
companies are thought to perpetuate the resource curse cycle, and this could be
fixed by having the oil producing countries refine their own oil. This would
add jobs to the country in the refineries. Also, the control over the oil would
be spread out so much further, and not just in the hands of a few. It would
lessen the chance of the military controlling the resource, since many more
people would need to be involved in order to refine before it could be exported.
Other
countries could play a role in fixing the curse. For oil in particular, the big
importers of oil could decrease their demand. This is obviously much easier
said than done. This would involve developing a different fuel source to be
used on a large scale, and thus far I don’t think we have an option for that.
Countries could ban booty futures so that it would be illegal for rights to be
bought for an oil well in case of a future war. Maybe the importers, who are
typically wealthier countries, could offer some kind of incentive to have these
countries work towards better governments and enforcement practices. Also, like
the suggestion earlier of the exporting countries being the ones who refine the
oil, the wealthier importing countries could offer money, or offer a loan to
the exporters to develop and construct a refinery in order to help their
government and economy run a bit more smoothly.