The Dependency Curse

It's an oft-told story of Native Americans: conquered by invading white Europeans, deprived of their land and forced to live on scattered reservation ghettos, reduced to lives of poverty and endemic social problems. But there is another side to that story. It's a story, first, of their incredible resilience in decades of separation and isolation. But it is also a story of wars among native tribes, of the taking of slaves, the building of native empires, and then, in the wake of their defeat by the Europeans, dependence on government and now-most recently-on the riches of casino gambling. Now, some native leaders contend that these dependencies may be a major cause of their alcoholism, suicides, domestic violence, child neglect, and so many other problems.Journalist Joe Rigert tells that unusual story of the bitter fruits of a dependence that leads to a lack of self worth and initiative, that is causing more and more natives to flee their reservations to live in the mainstream of society, seeking jobs and a better life. In this barely noticed migration, two-thirds of the natives have moved to the cities, rivaling the long-ago migration of black Americans from the South to the North.Rigert's account focuses on the small Klamath Tribes of Oregon, independent for a while and now dependent again, by their choice, on government benefits, and by comparison, the Mdewakanton Sioux of Minnesota, a tribe also suffering from dependency, in their case dependence on casino gambling that makes them all millionaires who don't need to work, and don't work, to their own tragic detriment. Rigert shows how the problems of these two tribes are indicative of the social pathology, as a native scholar put it, found among so many members of the 560 tribes of America. It's a seminal story never told before.

The wealth derived from natural resources can have a tremendous impact on the economics and politics of producing countries. In the last quarter century, we have seen the surprising and sobering consequences of this wealth, producing what is now known as the "resource curse." Countries with large endowments of natural resources, such as oil and gas, often do worse than their poorer neighbors. Their resource wealth frequently leads to lower growth rates, greater volatility, more corruption, and, in extreme cases, devastating civil wars. In this volume, leading economists, lawyers, and political scientists address the fundamental channels generated by this wealth and examine the major decisions a country must make when faced with an abundance of a natural resource. They identify such problems as asymmetric bargaining power, limited access to information, the failure to engage in long-term planning, weak institutional structures, and missing mechanisms of accountability. They also provide a series of solutions, including recommendations for contracting with oil companies and allocating revenue; guidelines for negotiators; models for optimal auctions; and strategies to strengthen state-society linkages and public accountability. The contributors show that solutions to the resource curse do exist; yet, institutional innovations are necessary to align the incentives of key domestic and international actors, and this requires fundamental political changes and much greater levels of transparency than currently exist. It is becoming increasingly clear that past policies have not provided the benefits they promised. Escaping the Resource Curse lays out a path for radically improving the management of the world's natural resources.

An “artfully presented [and] engaging” look at the insidious effects of financialization on our lives and politics by the author of Treasure Islands (The Boston Globe). How didthe banking sector grow from a supporter of business to the biggest business in the world? Financial journalist Nicholas Shaxson takes us on a terrifying journey through the world economy, exposing tax havens, monopolists, megabanks, private equity firms, Eurobond traders, lobbyists, and a menagerie of scoundrels quietly financializing our entire society, hurting both business and individuals. Shaxson shows how we got here, telling the story of how finance re-engineered the global economic order in the last half-century, with the aim not of creating wealth but extracting it from the underlying economy. Under the twin gospels of “national competitiveness” and “shareholder value,” megabanks and financialized corporations have provoked a race to the bottom between states to provide the most subsidized environment for big business, encouraged a brain drain into finance, fostered instability and inequality, and turned a blind eye to the spoils of organized crime. From Ireland to Iowa, he shows the insidious effects of financialization on our politics and on communities who were promised paradise but got poverty wages instead. We need a strong financial system—but when it grows too big it becomes a monster. The Finance Curse is the explosive story of how finance got a stranglehold on society, and reveals how we might release ourselves from its grasp. Revised with new chapters “[Discusses] corrupt financiers in London and New York City, geographically obscure tax havens, the bizarre realm of wealth managers in South Dakota, a ravaged newspaper in New Jersey, and a shattered farm economy in Iowa . . . A vivid demonstration of how corruption and greed have become the main organizing principles in the finance industry.” —Kirkus Reviews

Debunks the view that natural resources lead to terrible outcomes by demonstrating that oil and minerals are actually a blessing.

It is widely believed that natural mineral resources are desirable. However there is growing evidence that this may not always be the case. Indeed, it seems that natural assets can distort the economy to such a degree that the benefit actually becomes a curse. In Sustaining Development in Mineral Economies, Richard Auty highlights these drawbacks and the devastating effect they can have on developing economies. With reference to six ore-exporters (viz. Peru, Bolivia, Chile, Jamaica, Zambia and Papua New Guinea) he outlines how things can go badly wrong. He particularly stresses the need to avoid `Dutch Disease' whereby competitiveness is drained out of the agriculture and manufacturing sectors so that in the long term growth falters.

Representing the definitive reference work for this broad and dynamic field, The International Encyclopedia of Geography arises from an unprecedented collaboration between Wiley and the American Association of Geographers (AAG) to review and define the concepts, research, and techniques in geography and interrelated fields. Available as a robust online resource and as a 15-volume full-color print set, the Encyclopedia assembles a truly global group of scholars for a comprehensive, authoritative overview of geography around the world. Contains more than 1,000 entries ranging from 1,000 to 10,000 words offering accessible introductions to basic concepts, sophisticated explanations of complex topics, and information on geographical societies around the world Assembles a truly global group of more than 900 scholars hailing from over 40 countries, for a comprehensive, authoritative overview of geography around the world Provides definitive coverage of the field, encompassing human geography, physical geography, geographic information science and systems, earth studies, and environmental science Brings together interdisciplinary perspectives on geographical topics and techniques of interest across the social sciences, humanities, science, and medicine Features full color throughout the print version and more than 1,000 illustrations and photographs Annual updates to online edition

The "resource curse," or "paradox of plenty," refers to the long-established notion central in development economics that countries rich in natural resources, particularly minerals and fuels, perform less well economically than countries with fewer natural resources. In other words, resources are an economic curse rather than a blessing. This short primer explores the complexities of this idea and the debates that surround it, in particular under what conditions the resource curse might operate, if not universal. Discussion ranges over the nature of resource booms, the benefits and costs of export-led growth, the problems of deindustrialization and manufacturing base erosion, rent-seeking behavior and corruption, and the empirical evidence of the effects of natural resource dependence on growth. The treatment is nontechnical and accessible, drawing throughout on a range of illustrative examples from across the developed and developing world. The Resource Curse offers an authoritative introduction to one of the most perplexing issues of economic growth.