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Natural Resource Endowment, The State And Development Strategy

Author

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  • RICHARD M. AUTY

    (Department of Geography, Lancaster University, UK)

Abstract
This paper speculates that a linear causal chain runs from the natural resource endowment to the landholding system, the type of political state, the choice of development strategy and economic performance. It suggests that resource-deficient countries tend to have peasant-dominated landholding systems which foster autonomous political states and growth-promoting economic linkages. Such countries out-perform resource-rich ones which have more varied landholding patterns which emphasise conflicts over rents and foster factional political states and weaker economic linkages. The preoccupation with rents in resource-rich countries impedes beneficial land reform and creates inefficient industry in a counter-productive effort to create non-farm jobs. Resource-deficient countries cannot afford such inefficient transfers and pursue a development strategy which uses scarce resources more effectively. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • Richard M. Auty, 1997. "Natural Resource Endowment, The State And Development Strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 651-663.
    • Handle: RePEc:wly:jintdv:v:9:y:1997:i:4:p:651-663
    DOI: 10.1002/(SICI)1099-1328(199706)9:4<651::AID-JID474>3.0.CO;2-4
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    References listed on IDEAS

    as
    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    2. Lawrence B. Krause, 1995. "Social Capability and Long-Term Economic Growth," Palgrave Macmillan Books, in: Bon Ho Koo & Dwight H. Perkins (ed.), Social Capability and Long-Term Economic Growth, chapter 15, pages 310-327, Palgrave Macmillan.
    3. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
    4. Rawski, Thomas G., 1979. "Economic growth and employment in China," World Development, Elsevier, vol. 7(8-9), pages 767-782.
    5. Jeffrey D. Sachs, 1989. "Social Conflict and Populist Policies in Latin America," NBER Working Papers 2897, National Bureau of Economic Research, Inc.
    6. Bon Ho Koo & Dwight H. Perkins (ed.), 1995. "Social Capability and Long-Term Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-13512-7, December.
    7. Deepak Lal, 1993. "The Repressed Economy," Books, Edward Elgar Publishing, number 269.
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