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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

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How Can Countries Escape the Natural Resource Curse? Answer: Democracy

How can countries escape the natural resource curse? And to what extent do cohesive and democratic institutions facilitate this process? In a new CGD working paper, we look at Nigeria—often seen as the prime example of a country cursed by its wealth. We show that when political institutions are cohesive and power is shared among the diverse groups in a multi-ethnic society, political contests over resource revenues are less likely to be violent. What produces cohesive institutions? Democratic elections.

Attack on The Oil Curse in Nigeria!

Nigeria is proposing to transfer a 10 percent stake in the national oil company to delta communities; citizens of the delta would then be entitled to cash benefits, delivered through a trust-type mechanism. Read about it here.

That would be a real live breakthrough on a good idea proposed in CGD papers for Iraq and Ghana.