Resource wealth will not be successfully used to promote wealth and shared prosperity if institutional quality is neglected. Remember that the extractive industries, due to their enclave characteristics, can be operated in weak institutional environments. This is not the case for most other industries that require an adequate investment climate to thrive. In these cases, achieving success will depend not only on human capital development, but to a greater extent, on strong enforcement of contracts, laws, and a generally strong business environment.
Wednesday, March 6, 2013
Excellent article on how resource-rich nations can avoid the "resource curse." According to Francisco Carneiro: