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Natural resource wealth “a truly double edged sword?”: a comparative study between Iran and Norway

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  • Nasrollahi Shahri, Nima

Abstract

This is an analytical comparative study done from a historical perspective between Iran and Norway as classic examples of countries touched by resource abundance contrastingly. The study tries to highlight the factors which turn oil riches into a curse so as to serve as a brief practical set of guidelines for countries facing the possibility of a natural resource related revenue increase. This study, however, does not purport to cover all the factors in play, but is rather of an interdisciplinary nature demonstrating the significance of Politics in the fate of Oil-rich countries. An abridged account of the petroleum sector and some other relevant information about the two states is initially given. The study then focuses on historical, economic, management and political differences which could have been influential in the way the two countries have been affected by their riches. A number of key differences are listed and elaborated on in more detail with the aid of examples invoked from similar countries. The study finds that factors such as the political structure of a country as well as its population and timing of oil discoveries, as factors not completely controlled by the state, carry a lot of weight in determining how successful a country is likely to be in managing its resources.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25639.

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Date of creation: 20 Mar 2010
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Handle: RePEc:pra:mprapa:25639

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Keywords: Resource riches; resource curse; Norway; Iran;

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  1. Silje Aslaksen & Ragnar Torvik, 2005. "A theory of civil conflict and democracy in rentier states," Working Paper Series 5805, Department of Economics, Norwegian University of Science and Technology.
  2. Atsushi Iimi, 2007. "Escaping from the Resource Curse: Evidence from Botswana and the Rest of the World," IMF Staff Papers, Palgrave Macmillan, vol. 54(4), pages 663-699, November.
  3. Gylfason, Thorvaldur, 2000. "Natural Resources, Education, and Economic Development," CEPR Discussion Papers 2594, C.E.P.R. Discussion Papers.
  4. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
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