4 ms·

Saudi Arabia is hardly a desirable model, though enough money admittedly papers over a lot of human rights abuses. In the above example it's like a hot girl wit

Saudi Arabia is hardly a desirable model, though enough money admittedly papers over a lot of human rights abuses. In the above example it's like a hot girl with severe mental health issues. Norway's sovereign wealth fund is a strategy to escape the resource curse. It's like a hot girl with high self esteem and a handgun in her purse. Alaska is one state in a country that has other things going for it. It's like a hot girl with a protective older brother.

Turing_Machine 4y ago
> Norway's sovereign wealth fund is a strategy to escape the resource curse. Alaska has the Permanent Fund for much the same reason. https://en.wikipedia.org/wiki/Alaska_Permanent_Fund https://en.wikipedia.org/wiki/Alaska_Permanent_Fund
- gregw2 4y ago
  Less discussed than Alaska, Texas uses it's oil money per its constitution to fund its university which seems pretty shrewd mitigation to the resource curse at a high level. Also no income tax for its citizens. Sample details: https://www.texastribune.org/2017/08/21/ut-system-oil-money-gusher-its-administration-and-trickle-students/ https://www.texastribune.org/2017/08/21/ut-system-oil-money-...
saiya-jin 4y ago
If Alaska would be a separate state maybe there would be a reason for concern /s I think 'resource curse' got it a bit backward although effect is straightforward and obvious - it allows a-holes aka bottom of society to rise, gives them extra booster rockets to rise fast (ie capture diamond mine, or oil fields like ISIL and sell via Turkey which was their primary income). Norway got it right because well its Norway, similar would happen if it was found ie in Switzerland. Some basic human decency ingrained deep in population and thus also in politics and those who set things up for future. If that's not present and society is more everybody-for-themselves, then yes it becomes the curse and more burden than benefit.
- karmakurtisaani 4y ago
  This is not the resource curse. It's basic economics actually: when there is a natural resource to be exploited, most investment, human capital and attention goes to that resource. This is because that's where the biggest returns are. Furthermore, the country's currency will get very strong, so it will make exporting anything else very difficult. Combine these factors and you end up with a country trapped in producing mainly only that one natural resource. This is also why Saudi Arabia is building seemingly insane megaprojects: to lure in enough production and construction to kick start a on industry unrelated to oil.

Turing_Machine 4y ago

> Norway's sovereign wealth fund is a strategy to escape the resource curse. Alaska has the Permanent Fund for much the same reason. https://en.wikipedia.org/wiki/Alaska_Permanent_Fund https://en.wikipedia.org/wiki/Alaska_Permanent_Fund

gregw2 4y ago
Less discussed than Alaska, Texas uses it's oil money per its constitution to fund its university which seems pretty shrewd mitigation to the resource curse at a high level. Also no income tax for its citizens. Sample details: https://www.texastribune.org/2017/08/21/ut-system-oil-money-gusher-its-administration-and-trickle-students/ https://www.texastribune.org/2017/08/21/ut-system-oil-money-...

saiya-jin 4y ago

If Alaska would be a separate state maybe there would be a reason for concern /s I think 'resource curse' got it a bit backward although effect is straightforward and obvious - it allows a-holes aka bottom of society to rise, gives them extra booster rockets to rise fast (ie capture diamond mine, or oil fields like ISIL and sell via Turkey which was their primary income). Norway got it right because well its Norway, similar would happen if it was found ie in Switzerland. Some basic human decency ingrained deep in population and thus also in politics and those who set things up for future. If that's not present and society is more everybody-for-themselves, then yes it becomes the curse and more burden than benefit.

karmakurtisaani 4y ago
This is not the resource curse. It's basic economics actually: when there is a natural resource to be exploited, most investment, human capital and attention goes to that resource. This is because that's where the biggest returns are. Furthermore, the country's currency will get very strong, so it will make exporting anything else very difficult. Combine these factors and you end up with a country trapped in producing mainly only that one natural resource. This is also why Saudi Arabia is building seemingly insane megaprojects: to lure in enough production and construction to kick start a on industry unrelated to oil.