1. OIL RICH OR ECONOMICALLY POOR: THE PUZZLE OF THE RESOURCE CURSE
By: Imani Sherrill

2. Source: Google Photos

3. Motivation
The economic models that I have learned thus far focus are European and American centric growth models. Many economic models do not focus on developing nations.
Oil is a globally desired commodity, however nations with a quantifiable percentage of oil in their GDP have economic inequalities
What we do not know about the resource curse is the process of how it works

4. Research Question
Despite oil being such a prominent resource in respective areas, why do oil wealthy nations have varying levels of economic development?

5. What is the Oil Resource Curse?
The Resource Curse
My research question addresses a well-known theory in the economic and political world called the resource curse
The resource curse is a paradox:
abundance of natural resources
have less economic growth, less democracy
bad development outcomes
What is the Oil Resource Curse?
In this case, prominent oil wealth that tends to lead to poor economic performance
What my thesis hopes to provide to the oil resource curse: The politics and process of nationalization through the institutions that history has developed leads to varieties of the resource curse and overall differing economic outcomes

6. Terms to Know
Nationalization- the process of the confiscation of oil from private sectors to obtain more revenue for the governments of oil rich/producing nations
Institution- Rules, norms, and procedures that guide behavior (political and economic)
Path Dependency- an idea that explains how repeated historical events and preferences shapes institutions then and now

7. Existing Literature Sachs and Warner 1995 Ross 2015
Acemoglu and Robinson 2012
Ross
2015
Sachs and Warner 1995

8. Alternative Hypothesis
Existing literature suggest that THESE alternative hypothesis are causal factors of the resource curse:
Alternative hypothesis #1: Structural and demographic variables: ethnic fractionalization, culture and geography
Alternative hypothesis #2: Economic variables: cleaner and greener resources and the Dutch Disease

9. Politics of the Resource Curse
Blessing
Inclusive
Economic and Structural Variables
Type of Nationalization
Curse
Extractive
Good nationalization
Bad nationalization

11. Theory of Nationalization
Nationalization of oil supplies is the de-privatization of oil production and operations
The general purpose is to:
obtain and transfer the revenue to the oil producing countries
create a concession system which eliminates private international companies from controlling oil and resources within an oil producing country

12. Venezuela’s Nationalization
Source: Google Photos

13. Current Economic Outcomes in Venezuela
Source: Google Photos

14. Saudi Arabia’s Nationalization
Source: Google Photos

15. Current Economic Outcomes in Saudi Arabia
Source: Google Photos

16. Norway’s Nationalization
Source: Google Photos

17. Current Economic Outcomes in Norway
Source: Google Photos

18. Combination of Politics and Economics
Conclusion
Combination of Politics and Economics
Nationalization
Solow Growth Model