gvA Update

How to govern with crude oil. Do good, by Joe El. He wants us to do good, like Faraday and Bill Gates. So borrowing from Joe El, we need people, good people that can run our governments if we are to defeat poverty, become economically competitive and transform our economies to be among the best in the world. This is particularly the case if your nation is an oil producing country. According to Tina Rosenberg, a Pulitzer Prize winner, every nation is worse off in corruption soon after finding crude oil. As she says, finding a hole in the ground that spouts money can be one of the worst things that can happen to a country. In addition, professor Terry Karl of Stanford University have concluded that many countries that strike crude oil eventually get found among the most economically troubled, the most authoritarian, and the most conflict-ridden in the world.â in a phenomenon is often known as the resource curse. What possibly causes this problem? Well, as it turns out, the crude oil industry is probably the worldâs most capital-intensive industry, so it creates few jobs. In addition, oil production and related revenues tend to concentrate a nationâs economy around the government. So instead of putting resources into producing other goods and services and marketing them, many well placed citizens and connivers spend their time currying favor or simply bribing powerful politicians and government officials who control oil money. Note this, economists Paul Collier and Anke Hoeffler found in a series of ground-breaking studies that if a third or more of a countryâs GDP came from the export of primary commodities, the likelihood of conflict was 22 percent. And they also found, similar countries that did not export commodities had a 1 percent chance. So people governing in oil producing states realizing that without much revenue from taxes which create accountability, they will have reject the sorcery of economics exploitation and just do good. Its called good governance. Our hidden economics for you.

 

Posted: Jun 28th, 2017 @ 01:48:34 AM