Willisms
Navigation

Buy WILLisms

XML Feed


Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Donate





Links

Blogroll Me!







Search



Archives

July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004




Social Security Reform Thursday.
March 13, 2008

Caption Contest: Enter Today!
Due: July 29, 2008

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006




Credits

Powered by Movable Type 3.17
Site Design by Sekimori




WILLisms.com June 2008 Book of the Month (certified classy):











The WILLisms.com Gift Shop: Support This Site

giftshopbanner.gif











This Week's Carnival of Revolutions: carnivalbutton.gif



Carnival Home Base: homebase.gif

























Willisms

« What A Glorious, Clever Protest! | WILLisms.com | Rock The Vote's Ostentatious Partisanship. »

Trivia Tidbit Of The Day: Part 19 -- Oil Wealth and Third World Development.

THE CURSE OF OIL-

Oil is a boom and bust industry. But it has largely been a curse in the Middle East, simultaneously stimulating and prohibiting modernization, while stifling democracy.

From 1950-1990:

...80% of all countries with a per capita income over $8,000 and exporting no oil were democracies. The proportion is roughly reversed among high per capita income countries whose export revenues from oil amounted to 50 percent or more of total trade revenues.


Source:

Pages 42-43, Democracy and Redistribution, by Carles Boix of The University of Chicago.


There's nothing mystical about oil itself. The explanation for the "oil curse" goes like this, from Boix:

...wealthy dictatorships are the direct consequence of a strong concentration of fixed natural resources.

...a high per capita income is related to democracy only to the extent that the former originates in relatively mobile, or, more generally, hard-to-tax, kind of capital, such as money or most types of human capital.

...high-income countries that base their prosperity on fixed natural resources, such as oil, should remain authoritarian in spite of their wealth. To avoid expropriation of their fixed assets, the owners will systematically crush any democratic movement.

The theory of a relation between wealth and democracy holds that the source of such wealth must be mobile, fluid, easily redeployed abroad, and not extremely concentrated. Oil is just one example of an asset that is none of those things. Because the owners of the immobile asset cannot readily "take the money and run" (you can't exactly move an oil well to another country) if and when high taxes are imposed on them, or when confiscation/nationalization begins, the lack of options creates an incentive to protect their immobile assets at all cost. Where wealth is less fixed in a concentrated resource, such as oil, democracy is a bargain compared to repression.


Previous trivia tidbits:

Part 1; Part 2; Part 3; Part 4; Part 5; Part 6; Part 7; Part 8; Part 9; Part 10; Part 11; Part 12; Part 13; Part 14; Part 15; Part 16; Part 17; Part 18.

Daily Trivia Tidbits cover a wide range of topics; you never know what you might find. Stay tuned to WILLisms.com for more.

Posted by Will Franklin · 17 April 2005 10:40 AM

Comments

Black gold, Texas tea, take your shoes off... Ya all come back now! Ya hear!

Posted by: Zsa Zsa at April 17, 2005 02:50 PM