Glossary
Globalization
The increasing interconnectedness of the world through the flow of goods, services, information, and people across national borders.
Example:
The rise of multinational corporations and global supply chains is a clear indicator of increasing globalization, impacting how countries manage their trade and resources.
Natural Resources
Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
Example:
A country rich in oil, like Saudi Arabia, possesses valuable natural resources that significantly influence its economy and foreign policy.
Paradox of Plenty
An alternative term for the resource curse, highlighting the ironic situation where abundant natural resources lead to negative economic and political consequences.
Example:
The paradox of plenty suggests that while a country like Nigeria has immense oil wealth, it struggles with corruption and inequality, rather than widespread prosperity.
Rentier State
A state that derives a substantial portion of its revenue from external rents, typically from the export of natural resources, rather than from taxation of its domestic population.
Example:
Venezuela, heavily reliant on oil exports for government income rather than broad-based taxes, exemplifies a rentier state facing economic instability when global oil prices drop.
Resource Curse
The paradox that countries with abundant natural resources tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.
Example:
Despite its vast diamond reserves, Sierra Leone experienced prolonged civil conflict and underdevelopment, a classic case illustrating the resource curse.
Resource Management
The strategic planning and organization of how a country utilizes and conserves its natural assets to achieve economic, social, and environmental goals.
Example:
China's extensive dam projects on major rivers are part of its resource management strategy to control water and generate electricity, often with international implications.