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Natural resources, aid, and democratization: A best-case scenario

  • Kevin Morrison

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    Natural resources and aid give dictators revenue to maintain power. Attempts are being made, therefore, to funnel these resources away from nondemocratic governments and toward their citizens. Using formal analysis and building on existing theories of democratization, I analyze the effects of such institutional solutions when they function perfectly (the best-case scenario). The models show that even with institutional safeguards, these resources diminish chances for democratization. In addition to their practical importance, the results have an important theoretical implication: the political resource curse may not be due to dictators' use of these resources, but simply to their existence in nondemocracies. Copyright Springer Science+Business Media, LLC 2007

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    File URL: http://hdl.handle.net/10.1007/s11127-006-9121-1
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    Article provided by Springer in its journal Public Choice.

    Volume (Year): 131 (2007)
    Issue (Month): 3 (June)
    Pages: 365-386

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    Handle: RePEc:kap:pubcho:v:131:y:2007:i:3:p:365-386
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    1. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank.
    2. Alberto Alesina & Silvia Ardagna & Roberto Perotti & Fabio Schiantarelli, 1999. "Fiscal Policy, Profits, and Investment," NBER Working Papers 7207, National Bureau of Economic Research, Inc.
    3. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
    4. Svensson, Jakob, 2000. "When is foreign aid policy credible? Aid dependence and conditionality," Journal of Development Economics, Elsevier, vol. 61(1), pages 61-84, February.
    5. Acemoglu, Daron & Robinson, James A, 1999. "A Theory of Political Transitions," CEPR Discussion Papers 2277, C.E.P.R. Discussion Papers.
    6. Feyzioglu, Tarhan & Swaroop, Vinaya & Zhu, Min, 1998. "A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, World Bank Group, vol. 12(1), pages 29-58, January.
    7. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
    8. James A. Robinson & Ragnar Torvik & Thierry Verdier, 2003. "Politcal Foundations of the Resource Curse," DELTA Working Papers 2003-33, DELTA (Ecole normale supérieure).
    9. repec:cup:cbooks:9780521855266 is not listed on IDEAS
    10. Jean-Paul Azam, 2001. "The redistributive state and conflicts in Africa," CSAE Working Paper Series 2001-03, Centre for the Study of African Economies, University of Oxford.
    11. Lancaster, Carol, 1999. "Aid to Africa," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226468389.
    12. Goldsmith, Arthur A., 2001. "Foreign Aid and Statehood in Africa," International Organization, Cambridge University Press, vol. 55(01), pages 123-148, December.
    13. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
    14. repec:ucp:bkecon:9780226731445 is not listed on IDEAS
    15. Adam Przeworski, 2005. "Democracy as an equilibrium," Public Choice, Springer, vol. 123(3), pages 253-273, June.
    16. Knack, Stephen, 2003. "Does Foreign Aid Promote Democracy?," MPRA Paper 24855, University Library of Munich, Germany.
    17. Azam, Jean-Paul, 1995. " How to Pay for the Peace? A Theoretical Framework with References to African Countries," Public Choice, Springer, vol. 83(1-2), pages 173-84, April.
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