By: Bikal Dhungel
Having a huge reserve of resources implies the wealth of a
country. The availability of Oil in the middle east and other parts
of the world is the matter of envy for countries that don't have it.
Middle Eastern nations like Saudi Arabia, Kuwait, Qatar etc have
turned themselves from a desert to places with highest sky scrapers
and enormous amount of wealth. Few other countries with rich natural
resources have developed themselves to highest level. However, the
question goes, is it good if a poor and undemocratic country is rich
in resources ? Studies have shown otherwise. Countries in Africa and
generally developing world, that are rich in natural resources are
not the one where there is a stable economy and high human
development level.
Actually it is the opposite. Countries that have resources are the
ones that are unstable, violent and autocratic states. The Democratic
Republic of Congo, which is rich in resources for example Coltan, a
material that is used to make Laptop Computers is one of the most
unstable countries in Africa. The struggle to get access to resources
has left the country with deep ethnic conflict. This was first
started by the French and Belgian colonialists in early twentieth
century. When DRC gained independence, the colonialist type rule by
president Mobutu Sese Seko was continued for 30 years. He did nothing
at all to develop the country except enriching himself with the vast
resources DRC had by selling it to western multinationals. To remain
in power, Mr President did everything he can to suppress the people by
preventing the Congolese to educate themselves and he did everything
to impede economic growth. When a president of a neighboring country
asked Mobutu for help when there was an uprising, he replied ' I told
you not to build any roads, I have never built any roads in 30 years.
If you build roads, then people to reach you to topple you down'.
Similarly, Somalia used to be a rich part with plenty of exotic
fishes near its shores until the days when big western ships came and
started to take their fishes. That drove small Somali fishermen out
of business who eventually started being pirates. The business of
being a pirate was so lucrative that if you are successful in
hijacking a big ship, you can demand millions of dollars from western
countries. In a poverty ridden place like Somalia where an average
citizen struggles to survive, dreams of millions of dollars gave
rise to gangs and thugs who involved in piracy. Well, this is a huge
topic of discussion but one can take resources as the reason which
gave rise to this mess.
What is happening in Niger Delta, Nigeria is nothing new for most
of us. Nigeria has vast oil reserves and most of the western oil
companies are operating there. Nigeria has second largest number of
millionaires in Africa and is on the way to become largest. This can
attributed to oil. The Nigerians on the other hand, like Somalis are
struggling in their daily lives and the oil companies have also
caused vast environmental disaster that has negative impacts on the
lives of people living around Niger Delta. Oil has not done good in
Nigeria. The list goes on and on when we take more examples.
However, we should also not forget that few countries have done
better, for example Botswana. It has done better because it had a
functioning democratic government that is capable to enforce law and
order. Even if any country is democratic but not in a position to
maintain law and order, and discovery of resources will give rise to
groups, clans or gangs who will seek to take control over these
resources which can cause violence or large scale conflicts.
Countries like Norway, where Oil was discovered in mid twentieth
century did extra-ordinarily well. Norwegian wealth is not only
socially just i.e. Whole population get their share in the form of
economic development or health care, they have also created a huge
reserve from that income for a rainy day. When oil is finished, this
reserve can continue helping them in the future.
Going back to the times of Colonization, also countries with more
resources were colonized like India, Brazil or the United States.
Unfortunately, most of the countries, even though they became
independent from the colonialists, got even worse politicians from
their own nations who continue to exploit them.
Conversely, everything else constant, countries with no natural
resources are among the richest countries, like Germany, Switzerland,
Denmark, Luxembourg, Singapore, South Korea and few other countries.
Of course there are other factors that play an important role but
these countries never had resources. Neither did they colonize other
countries with an exception of Germany which had few colonies before
World War I but had to give it to France or UK after Germany was
defeated in World War I.
The aim of this article is to say that, when there is any
discovery of resources in a poor or unstable country, it can be
negative. It can give rise to more instability and harm the economic
development. So, creating a functioning democracy with a capable
justice system which is able to enforce law an order is a
pre-requisite for a peaceful future.
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