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A Paradox of Plenty? Rent Distribution and Political Stability in Oil States

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Author Info
Matthias Basedau () (GIGA Institute of African Affairs)
Wolfram Lacher () (School of Oriental and African Studies, University of London)
Abstract

Resource curse theory claims that resource abundance encourages violent conflict. A study of 37 oil-producing developing countries, however, reveals that oil states with very high levels of oil revenue are remarkably stable. An analysis of the ways in which governments spend oil revenues identifies two distinct types of rentier systems – the large-scale distributive state and the patronage-based system – which are strongly linked to instability or its absence. However, some deviant cases, such as Equatorial Guinea and Gabon, illustrate the need for further research. Apparently, the notion of a “paradox of plenty” has neglected rentier mechanisms that avoid conflict.

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Publisher Info
Paper provided by GIGA German Institute of Global and Area Studies in its series GIGA Working Paper Series with number 21.

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Length: 31 pages
Date of creation: Apr 2006
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Handle: RePEc:gig:wpaper:21

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Related research
Keywords: Resource Curse; Paradox of Plenty; Oil; Rentier State; Violent Conflict; Political Stability; Developing World;

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Find related papers by JEL classification:
N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Anne D. Boschini & Jan Pettersson & Jesper Roine, 2006. "Resource curse or not: A question of appropriability," DEGIT Conference Papers c011_050, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
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  2. Christopher Cramer, 2003. "Does inequality cause conflict?," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 397-412. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Annegret Mähler, 2009. "Oil in Venezuela: Triggering Violence or Ensuring Stability? A Context-sensitive Analysis of the Ambivalent Impact of Resource Abundance," GIGA Working Paper Series 112, GIGA German Institute of Global and Area Studies. [Downloadable!]
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