According to him, minerals tend to generate rents and those rents are largely captured by states via export taxes, corporate taxes, and state-owned enterprises, and that mineral extraction employs relatively little labor.
What other natural resources does the country possess?
As Michael Ross explains in these states, since governments gain most of their revenues from external sources, such as resource rents or foreign assistance, they are freed from the need to levy domestic taxes and become less accountable to the societies they govern and the become more predatory state.
The Nile River is a prominent feature of the modern cityscape of Cairo, Egypt.
Booming resource sectors draw capital and labour away from agriculture and manufacturing and the price of non-tradable goods also rises. When it comes to analyze the factors that are likely to determine whether natural resource endowments facilitate or undermine economic development, it is more common to observe the factors undermining economic development.
However, most of the natural resource-endowed countries can easily refute the general perception with their poor economic and political performance. What countries have mountains?
The people who traveled these roads exchanged not only products, but, maybe even more importantly, ideas -- scientific, religious, and artistic -- that would challenge and change institutions in China as well as in the Middle East.
What is the source of water? According to his study, some resources require relatively minimal investment on extraction equipment and they can be exploited under conflict conditions by a small band of people or by individuals for example, extraction of placer gemstones in Sierra Leone and Myanmar to finance rebel movements.
Where might their wealth come from? As Gylfason states that natural capital appears to crowd out human capital thereby slowing down the pace of economic development.
Most, but not all, of the region is arid. Even though it is not comparable with Norway, as Gylfason exemplifies the significance of good governance mentioning that Botswana has managed its diamond mining quite well and used the rents to support rapid growth that has made Botswana the most prosperous country in mainland Africa.
The "Islamic world" includes all of the Arabic countries, as well as neighboring Turkey and Iran. How well can the student make connections between a country's natural resources and its economy? Another factor reducing the benefits of an abundant natural resource endowment is deriving from the fact that large share of resource rent goes directly to the government especially relevant to mineral exporters leading the state to become overextended, especially in the face of large fluctuations in the value of natural resources.
This reliance on foreign oil leaves the country vulnerable to unilateral political and economic acts by oil producing countries. What international issues is the country currently facing?
Agriculture -- Organize the countries from highest to lowest percentage of GDP that is contributed by agriculture. Particularly, high rents distract governments from investing in the ability to produce growth supporting public goods, such as infrastructure or legal codes.
Another factor that undermines the benefits of natural resources is the general tendency of those states in neglecting their human capital and education. Discuss the similarities and differences of countries with water, agriculture, and other exports.
Among the first areas to develop agriculture as far back as 11, BCEancient cultures that developed in this region include Canaanite, Amorite, Israelite, and Phoenician. Furthermore, if resource extraction leads to land expropriation, environmental damage and largescale migration and displacement, then it is possible that extraction-related disputes could increase the risk of civil war.
The end result is higher costs, reduced competitiveness, and fewer exports. Comparative Political Studies What surprised students about their research? While the herding lifestyle of the nomadic peoples of the Middle East may have captured the romantic imagination of Europeans and Americans, in reality, pure nomads have always been a small minority in this region.
Some estimates show that bylandlocked Central Asia will provide more than 80 percent of the oil distributed to the U. Besides all, there are some factors that are equally or more important than natural resource endowments for explaining different development outcomes.
Are livestock an important agricultural commodity? What international issues is the country currently facing? The government invests the revenues from oil in foreign securities in order to divide oil receipts fairly between the present generation and future generations as well as to shield the economy from too much income too quickly.interested in FDI.
The role of natural resources in economic development touches on many issues, from FDI to the environment to the level and management of exchange rates. Natural resources are a fixed factor of production and hence, almost by definition, impose a restriction on economic growth potential.
The Middle East is an important and diverse region whose politics have played an important role in global society. This lesson offers essay prompts that will help your students explore the. The Geography of the Middle East. The Middle East is a large and diverse geographical area located in southwest Asia and northeast Africa.
It extends over 2, miles from the Black Sea in the north to the Arabian Sea in the south, and about 1, miles from the Mediterranean Sea in the west to the mountains of Iran. This paper uses panel data for 22 countries over the period – to examine the impact of natural resources, market size, government policies, political instability and the quality of the host country's institutions on FDI.
The natural resources. What is the role of the natural resources in the region? Geologists and historians have often documented that The Middle East has had a rich profusion of natural resources and one can find the fact that copious petroleum plays a vital role in this area’s economy.
Describe the spatial distribution of oil and natural gas production in the Middle East and North Africa region. What are the consequences of the uneven distribution of these resources on this region's politics and economy?Download