Tackling The Resource Curse and The Role of Sustainable Development In Petroleum Resource (Comparative Case Study Of The UK, USA, and Nigeria).
The endowment of natural resources can threaten a nations long lasting affluence. This is due to the fact that nations who are natural resources intensive ironically develop slower than economies, which are less natural resources-intensive. Oil, gas and other minerals may give a negative impact development as measured by income per capita. Issues such as this does not usually say much about sustainability, which is very important for developing countries such as Nigeria whose economic growth and welfare derives primarily from the exploitation of exhaustible resource.
Stemming from the above, the author believes that states with abundant sub-soil assets in the form of oil, gas and minerals are in a position to induce enormous revenues from extraction that can in turn spur economic development. This means that resource abundance should be a blessing. However, this is not the case in some countries, which are blessed with these resources; such as Nigeria, Equatorial Guinea, Libya, and Egypt etc.
This project will look at the variables that help to explain different outcomes of extraction in terms of sustainable development. The literature will focus on the impact of resource richness on economic growth and income per capita. While this is an essential metric for economic development, it does not say much about sustainability, which is crucial in the case of exhaustible resources like oil and minerals whose production is bound to peak and cease at some point in time. It will draw on environmental accounting and take adjusted net savings as an indicator of weak sustainability. Consistent with the resource-curse literature, the project will consider series of governance and institutional indicators to assess the interconnection between the extractions of resources, governance and development outcomes.
The objective of the work is to enhance the understanding of the interactions between resource dependence, institutions and the quality of governance, armed violence and sustainable development in resource-rich developing countries. This project will also examine the implication of petroleum exploitation for the possibility of sustainable development in Nigeria. There would be a comparative case study of other countries affluent in Natural Resources such as the Saudi Arabia and the USA and how they manage to avoid the resource curse and also a discussion on why the United Kingdom which is less affluent in Oil, Gas and Mineral (compare to other developing countries in this case Nigeria) still manage to gain more than these countries more blessed with these natural resources