Samples Economics The Resource Curse

The Resource Curse

354 words 2 page(s)

The problem of resource curse is one of the most challenging conflicts in the area of extractive industries and development, especially sustainable development. It so appears that both developed and developing countries are in a position to remedy the problem.

On the side of countries with rich mineral resources, the solution must be found to the tendency of the respective governments to postpone reforms and disregard imbalances in the economy caused by the rapid growth of extractive industries. The Andean region is an excellent example to this end, as localities in such countries as Peru, Bolivia, and Ecuador that rely heavily on extractives are associated with poor regional development. Governments in the Global South have to engage in smart economic policies to minimize the negative effects of booming extractive activities. These policies must include efforts to achieve a diversification of investment in numerous economic areas rather than focusing on the mining.

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Governments must develop tools that would be able to prioritize strategic investments that possess an added value of poverty reduction and equity enhancement. Finally, there is a pressing need to establish good communication channels with local authorities and communities to make sure that social pressures are addressed adequately. (Bebbington)

At the same time, the governments of developing countries should not be left alone in their endeavor of ensuring sustainable development on our planet. The Global North often has a stronger institutional capacity to promote the adherence to corporate social responsibility requirements and labor standards. Most importantly, the influence can come from civil society in countries with functional democratic institutions and the rule of law. In this framework, the governments and civic actors of the Global North can put pressure on investors to comply with human rights obligations, environmental objectives, and the protection of indigenous people and other vulnerable social groups. (Fulmer)

    References
  • Bebbington, Anthony. “Extractive industries and stunted states: conflict, responsibility and institutional change in the Andes.” Corporate social responsibility: Comparative critiques (2010): 97-116. Web.
  • Fulmer, Amanda M. “The Politics of a Strange Right: Consultation, Mining, and Indigenous Mobilization in Latin America.” The Uses and Misuses of Human Rights. Palgrave Macmillan US, 2014. 65-88. Web.

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