For almost as long as economics has been a profession, the role of
natural resources in the promotion of economic growth has been among the
core issues of development theory. Some newer theories suggest that
natural riches produce institutional weaknesses as various social groups
attempt to capture the economic rents derived from the exploitation of
natural resources. Since the 1960s, some analysts have argued that
resource-rich developing countries have grown more slowly than other
developing countries. Nevertheless, we find ourselves in a time when
conventional wisdom again postulates that natural resources are indeed
riches.
This book brings together a variety of analytical perspectives, ranging
from econometric analyses of economic growth to historical studies of
successful development experiences in countries with abundant natural
resources. The evidence suggests that natural resources are neither a
curse nor destiny. Natural resources can actually spur economic
development when combined with the accumulation of knowledge for
economic innovation. Furthermore, natural resource abundance need not be
the only determinant of the structure of trade in developing countries.
In fact, the accumulation of knowledge, infrastructure, and the quality
of governance all seem to determine not only what countries produce and
export, but how firms and workers produce any good.
