Wednesday, February 21, 2007
Resource curse - comparing India and Russia
The development literature has long been aware of the `resource curse' where countries with weak institutions are actually hurt, and not helped, by lucrative natural resources. One can't help wonder how the post-1945 history of the Middle East would have shaped up differently if there had been no oil there. On Bloomberg today, there's a nice article by Amity Shlaes comparing the evolution of India as opposed to Russia in the light of the lack of natural resources in India.