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Natural Resource Endowment, The State And Development Strategy

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  • RICHARD M. AUTY

    (Department of Geography, Lancaster University, UK)

Abstract

This paper speculates that a linear causal chain runs from the natural resource endowment to the landholding system, the type of political state, the choice of development strategy and economic performance. It suggests that resource-deficient countries tend to have peasant-dominated landholding systems which foster autonomous political states and growth-promoting economic linkages. Such countries out-perform resource-rich ones which have more varied landholding patterns which emphasise conflicts over rents and foster factional political states and weaker economic linkages. The preoccupation with rents in resource-rich countries impedes beneficial land reform and creates inefficient industry in a counter-productive effort to create non-farm jobs. Resource-deficient countries cannot afford such inefficient transfers and pursue a development strategy which uses scarce resources more effectively. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • Richard M. Auty, 1997. "Natural Resource Endowment, The State And Development Strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 651-663.
  • Handle: RePEc:wly:jintdv:v:9:y:1997:i:4:p:651-663
    DOI: 10.1002/(SICI)1099-1328(199706)9:4<651::AID-JID474>3.0.CO;2-4
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    References listed on IDEAS

    as
    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    2. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
    3. Rawski, Thomas G., 1979. "Economic growth and employment in China," World Development, Elsevier, vol. 7(8-9), pages 767-782.
    4. Jeffrey D. Sachs, 1989. "Social Conflict and Populist Policies in Latin America," NBER Working Papers 2897, National Bureau of Economic Research, Inc.
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