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Mission improbable: Does petroleum-related aid address the resource curse?

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  • Kolstad, Ivar
  • Wiig, Arne
  • Williams, Aled

Abstract

Petroleum-related aid programmes and projects are a key part of donor activities in oil-rich developing countries. This paper critically assesses petroleum-related aid activities, using the Norwegian Oil for Development programme as a main case. Recent research suggests that institutions, or governance, are essential in averting a resource curse. While governance issues are beginning to receive more attention in these types of programmes, they still form a minor part of programme activities. The narrow sector focus that characterizes petroleum-related aid makes it unlikely that it will produce the higher order institutional changes needed to lift the resource curse. Petroleum-related aid activities address the issue of corruption only to a limited extent. Given the commercial and political interests of donor countries, questions about the integrity and credibility of these types of programmes can be raised.

Suggested Citation

  • Kolstad, Ivar & Wiig, Arne & Williams, Aled, 2009. "Mission improbable: Does petroleum-related aid address the resource curse?," Energy Policy, Elsevier, vol. 37(3), pages 954-965, March.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:3:p:954-965
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    5. Gnangnon, Sèna Kimm, 2021. "Effect of Development Aid on Productive Capacities," EconStor Preprints 233973, ZBW - Leibniz Information Centre for Economics.
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    9. Baena, César & Sévi, Benoît & Warrack, Allan, 2012. "Funds from non-renewable energy resources: Policy lessons from Alaska and Alberta," Energy Policy, Elsevier, vol. 51(C), pages 569-577.

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