New Research Shows How Countries Can Avoid the “Resource Curse”

The riddle of how to avoid the so-called "resource curse" has bedeviled a generation of policy makers, economists and academics.

"Resource curse" refers to the negative consequences that befall a country when it discovers a valuable natural resource, like oil. Often times the discovery of oil does not propel a country's economic development. Rather, it sets back the political and economic development of the place where oil was discovered.

My guest today is engaging in ground-breaking research that suggests some ways that a government may avoid the resource curse. Sam Hickey is a professor of the politics and development at the Global Development Institute at the University of Manchester. He is engaged in some long-term research into how governments in Africa are approaching their oil sectors. This includes a fascinating study comparing how democratic Ghana and authoritarian Uganda have approached their relatively recent oil discoveries.

Responsible resource extraction is a key element in…