Ideas to Action:

Independent research for global prosperity

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.

 

Stock photo of oil pumpjacks

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.

Development's Hopes and Dilemmas in the Country at the Center of the World: Papua New Guinea

In a recent trip to the center of the world, I found myself confronting the big development questions in a low-income country with reasonably propitious circumstances. Papua New Guinea (PNG) is larger, richer, and growing faster than I had thought. It will go to the polls this very month to elect a new government. It is also facing all the dilemmas faced by most low-income countries since the 1950s—political fragmentation, resource curses, income inequality, and poor health. Have we learned anything to help it meet those challenges?

Cashing In on Coal

India is getting some serious cash from coal. According to official estimates, the government will get nearly $250 billion in revenues over a period of 30 years from the sale of over two hundred coal blocks to private bidders. Given India’s record of corruption and mismanagement of natural resources, it is difficult to be optimistic that it will be able to cash in on this windfall and use it for development. But there are a few silver linings that may prove us (happily) wrong.