The downside of petrostates is that typically, they tend to authoritarianism, suffer from Dutch disease
, and become ever more oil dependent; in many cases their elites indulge in rentier behaviour, the report said.
But what we have to fear is far more than the real likelihood that the Dutch Disease
-- whereby an increase in exploitation of natural resources is undermined by a decline in other sectors -- will take root here.
Besides the established reality that the exploitation of valuable natural resources can result in the 'Resource Curse' or " Dutch Disease
, where a country's other industries become less competitive as a result of currency valuation due to the revenue raised from the resource.
This paper discusses the adverse effects of Dutch Disease
and details how Ireland, though not hinged upon one individual booming natural resource, has suffered through the same symptoms of Dutch Disease
The authors substantiate two mechanisms that mitigate the economic effects of oil price shocks, namely the stabilisation brought by the Oil Stabilisation Fund and the Dutch disease
This study examines whether the Dutch Disease
--a resource boom leading to the decline of the erstwhile tradable sector--is present in Nigeria in the light of the rejection of the Dutch Disease
thesis in other studies on Nigeria.
When an oil producer falls prey to the Dutch Disease
, the cost doesn't primarily take the form of shifts in investment and output in the oil sector per se.
1994] showed the different effects that produced joint deindustrialization in East Germany as an analogy of the well-known Dutch Disease
While the Fed's monetary policy normalisation process was not so worrisome, a possible Dutch disease
type situation through FII flows was a concern.
They didn't get a bellyache, but Ontario got the Dutch disease
She stressed that a top priority for Lebanon should be avoiding falling into a Dutch disease
scenario, when real exchange appreciation leads to loss in competitiveness across tradable sectors.
June 12, 2009 (KHARTOUM) -- Sabir Mohamed Hassan, Governor of Central Bank of Sudan said Sudanese economy has been suffering from the Dutch disease
because it depends on oil revenue and neglects other non-oil exports.