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Ensuring the Discovery of Oil is a Blessing not a Curse to the Local Communities: An Insight Into the Paradox of Plenty

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    Report

  • 20 Pages
  • September 2020
  • Region: Global
  • Client Horizons
  • ID: 5146591
A Holistic Insight Into the Multiple, and Often Complex Factors at Play When Discussing the Resource Curse

FEATURED COMPANIES

  • BBC
  • BP
  • Chevron
  • Cordaid
  • Equinor
  • IMF

This report analyzes the fascinating subject of the paradox of plenty, whereby the discovery of a natural resource such as oil results in more harm than good in terms of the livelihoods of the local communities.


 


The resource curse, also known as the “paradox of plenty” has been a much-debated topic in research spanning many decades.


What is broadly agreed is:


  • The discovery or presence of an abundance of natural resources such as oil, does not inevitably or universally result in better or worse economic growth.
  • The discovery of oil has succeeded in positively transforming the economy and livelihoods in some countries, whilst failing to do so in others.
  • The success, or failure of fully harnessing the benefits the discovery of a resource such as oil depends on many complex, and often ignored factors.

Broadly speaking, countries that have succeeded are known to have invested in making long-term, strategic development plans to ensure the discovery of oil creates long-term, sustainable livelihoods for their people.

What the Report Offers

The report is intended to provide a holistic insight into the multiple, and often complex factors at play when discussing the resource curse. Increased awareness of these factors will help industry players, governments and local communities develop an appreciation of the breadth of variables worth considering.

This will arguably increase the chances of effective governance frameworks being developed to ensure the discovery of resources subsequently leads to an improvement in the livelihoods of the people in the local and wider communities. Whilst the report focuses on the impact of oil discovery on the livelihoods of local communities, similar arguments are applicable to the discovery of other natural resources such as minerals. The study looks at both the resource curse approach, including factors like over-reliance, as well as the institutional approach, exploring factors such as politics and conflict.

Key Areas Explored


  • Over-reliance
  • Politics, conflict and corruption
  • Community engagement
  • The ‘Dutch Disease’
  • What has worked
  • The role of corporate social responsibility

FEATURED COMPANIES

  • BBC
  • BP
  • Chevron
  • Cordaid
  • Equinor
  • IMF
  1. Executive Summary
  2. Introduction
  3. Over-Reliance on Natural Resources
  4. Politics, Corruption and Conflict
  5. Community Engagement
  6. The “Dutch Disease”
  7. What Has Worked and Why
  8. The Role of Corporate Social Responsibility
  9. Concluding Remarks and Sources
  • BP
  • Shell
  • Chevron
  • Equinor
  • Statoil
  • Cordaid
  • IMF
  • BBC
  • International Energy Agency
  • Government Pension Fund Global - Norway
  • Tullow Oil