The politics of resource booms
AbstractThis paper develops a simple model to investigate how resource-driven economic booms shape the equilibrium political institutions of resource-rich societies and in uence the likelihood of experiencing civil war. In our model a strong government apparatus favors property rights protection but also makes the state more powerful and hence may induce predatory autocratic regimes over democracy. We characterize the parameter space of each political outcome in terms of the type of the available natural resources. Economic booms based on resources that are privately exploited empower the citizens and tend to ease democratic transitions. In contrast, booms based on resources exploited by the state tend to favor more dictatorial regimes. Finally, economic booms based on resources that can be exploited either by the state or by private citizens incite preemptive actions by both parties that may result in civil war. We discuss the predictions of the model using historical and contemporary examples.
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Date of creation: 06 Nov 2012
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Resource Boom; Autocracy; Democracy; Civil War.;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-HIS-2012-11-17 (Business, Economic & Financial History)
- NEP-POL-2012-11-17 (Positive Political Economics)
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