×

Saving Iraq From Its Oil

Courtesy Reuters

ESCAPING THE RESOURCE CURSE

As the United States, the United Nations, and the Iraqi Governing Council struggle to determine what form Iraq's next government should take, there is one question that, more than any other, may prove critical to the country's future: how to handle its vast oil wealth. Oil riches are far from the blessing they are often assumed to be. In fact, countries often end up poor precisely because they are oil rich. Oil and mineral wealth can be bad for growth and bad for democracy, since they tend to impede the development of institutions and values critical to open, market-based economies and political freedom: civil liberties, the rule of law, protection of property rights, and political participation.

Plenty of examples illustrate what has come to be known as the "resource curse." Thanks to improvements in exploration technology, 34 less-developed countries now boast significant oil and natural gas resources

Loading, please wait...

This article is a part of our premium archives.

To continue reading and get full access to our entire archive, please subscribe.

Related Articles

This site uses cookies to improve your user experience. Click here to learn more.

Continue