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the natural resource curse 23Table 2.5 Mean OECD Tariffs on Processed and UnprocessedExtractive ProductsProduct and descriptionTariffCopperCopper ores and concentrates 0.00Wire of refined copper, if maximum cross-sectional dimension 4.06exceeds 6 millimetersTubes and pipes of refined copper 4.12Cooking or heating apparatus used for domestic purposes 3.98AluminumAluminum ores and concentrates 0.00Unwrought aluminum (not alloyed) 4.10Wire of aluminum, if maximum cross section exceeds 7 millimeters 6.13Table or kitchenware of aluminum 5.83LeadLead ores and concentrates 0.00Refined lead 1.88Lead tubes, pipes, and fittings 3.90NickelNickel ores and concentrates 0.00Nickel bars, rods, and profiles (not alloyed) 0.33Tubes and pipes of nickel (not alloyed) 0.31Cloth, grill, and netting of nickel wire 0.77TinTin ores and concentrates 0.00Tin rods, bars, profiles, and wire 0.36Tin tubes, pipes, and fittings 0.40ZincZinc ores and concentrates 0.00Refined zinc (containing by weight 99.99 percent or more of zinc) 1.80Zinc bars, rods, profiles, and wire 3.84Zinc tubes, pipes, and pipe fittings 3.92PetroleumPetroleum oils, crude oil 0.00Petroleum resins, coumarone, indene, or coumarone-indene 7.00resins, and polyterpenesWoven fabrics made from high-tenacity yarn of nylon or other 8.47polyamides or of polyestersPolyethylene (used for grocery bags, shampoo bottles, children’s toys) 6.87Polymers of vinyl chloride (PVC plastic) 7.52Polycarbonates (used for light fittings, kitchenware, and compact disks) 7.84Source: UNCTAD-TRAINS database (United Nations Conference on Trade andDevelopment Trade Analysis and Information System); available at www.unctad.org/trains/index.htm [consulted June 1, 2001].
24 michael rossvolatile than the prices for manufactured goods (Grilli and Yang 1988).Since 1970 this volatility has grown worse (Reinhart and Wickham1994). This means that when countries become more dependent onoil and mineral exports they also become more vulnerable to economicshocks. 6 Studies show that revenue shocks tend to promotecorruption, weaken state institutions, and create a host of budget andmanagement problems. In theory, governments should be able tobuffer their economies against these market shocks by setting up stabilizationfunds and, perhaps, savings funds. Yet in practice thesefunds are often poorly managed and wind up doing more harm thangood (Ascher 1999; Davis and others 2001). Policymakers shouldconsider better ways for governments to smooth their revenue flows—not, perhaps, through stabilization funds but through other devices,such as long-term contracts and insurance mechanisms. This is a criticalarea for additional research and policy innovation.Resource Dependence and GovernanceNatural resource dependence also has an impact on governments. Astrong and effective government should be able to offset some of theeconomic and social problems caused by resource dependence. But resourcedependence tends to influence governments themselves, makingthem less able to resolve conflicts and more likely to exacerbate them.This occurs through three mechanisms: corruption, state weakness,and reduced accountability.CorruptionThe first mechanism is government corruption. There is strong evidencethat, when a government gets more of its revenue from oil,minerals, and timber, it is more likely to be corrupt. Part of this problemis due to the sheer volume of resource revenues: governments canabsorb, and effectively track, only limited amounts of money. Resourcewealth often floods governments with more revenue than theycan manage effectively. Another part of the problem comes from thevolatility of resource revenues: sudden ebbs and flows of revenues tendto overwhelm normal budgeting procedures and can weaken stateinstitutions. 7There are, unfortunately, many examples of resource-linked corruption.In the case of a major oil-exporting African country, almost$1 billion reportedly disappeared from the government’s accounts in2001 due to corruption. Fiscal discrepancies over the previous several
Page 1 and 2: Public Disclosure AuthorizedOptions
Page 4 and 5: Natural Resourcesand ViolentConflic
Page 6 and 7: ContentsPrefaceContributorsAcronyms
Page 10 and 11: PrefaceRECENT RESEARCH UNDERTAKEN B
Page 12: prefacexiespecially Nicholas Stern,
Page 15 and 16: xivcontributorsSylviane Guillaumont
Page 18 and 19: Acronyms and AbbreviationsAUCCCAMLR
Page 20 and 21: chapter 1Natural Resources andConfl
Page 22 and 23: natural resources and conflict 3Fig
Page 24 and 25: natural resources and conflict 5rig
Page 26 and 27: natural resources and conflict 7War
Page 28 and 29: natural resources and conflict 9pro
Page 30 and 31: natural resources and conflict 11ag
Page 32 and 33: natural resources and conflict 13ar
Page 34 and 35: natural resources and conflict 15re
Page 36: chapter 2The Natural Resource Curse
Page 39 and 40: 20 michael rossEconomic GrowthIt ma
Page 41: 22 michael ross12 of the 20 as “h
Page 45 and 46: 26 michael rossby the military, giv
Page 47 and 48: 28 michael rosswars in regions that
Page 49 and 50: 30 michael rossIncrease Transparenc
Page 51 and 52: 32 michael ross• InSierra Leone i
Page 53 and 54: 34 michael rossgroups have also tur
Page 55 and 56: 36 michael rossgenerate extraordina
Page 57 and 58: 38 michael rossand arms to the Nati
Page 59 and 60: 40 michael rossHegre, Håvard. 2002
Page 61 and 62: 42 michael rossRelation to Sierra L
Page 63 and 64: 44 swanson, oldgard, and lundemeani
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92 swanson, oldgard, and lunde27. S
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98 crossin, hayman, and taylorThere
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100 crossin, hayman, and taylorTabl
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104 crossin, hayman, and taylorThus
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106 crossin, hayman, and taylorCTRs
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116 crossin, hayman, and taylorBox
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118 crossin, hayman, and taylorA la
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120Table 4.2 Forest Product Monitor
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122Table 4.2 (continued)Technology
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126 crossin, hayman, and taylorprov
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132 crossin, hayman, and taylorThe
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chapter 5Follow the Money: The Fina
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follow the money 163existing standa
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follow the money 165various institu
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follow the money 167portion of the
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follow the money 169funded their wa
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follow the money 171• Use undergr
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follow the money 173EmbargoesAn ong
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follow the money 175violating secto
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follow the money 177category. Howev
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follow the money 179of weapons and
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follow the money 181in June 2002 by
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follow the money 183The resolution
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follow the money 185• Enter into
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follow the money 187to establish th
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follow the money 189in general, not
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follow the money 191Current capacit
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follow the money 193laundering and
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follow the money 195system and law
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follow the money 197lawful purpose,
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follow the money 199in criminal mat
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follow the money 201Canada, Germany
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follow the money 203means that the
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follow the money 205the wholesale o
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follow the money 207Prior to the Se
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follow the money 2092. Current memb
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follow the money 211of all firearms
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follow the money 213“Four Compani
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chapter 6Getting It Done: Instrumen
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getting it done 217objective of end
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getting it done 219Fourth, under ce
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getting it done 221The proliferatio
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getting it done 223Mandatory and vo
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Table 6.1 Overview of International
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227CertificationregimesKimberleyCer
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getting it done 229instruments, and
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getting it done 231recently been en
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getting it done 233$500 million. 8
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getting it done 235The argument tha
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getting it done 237legislation and
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getting it done 239Many observers a
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getting it done 241International Le
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getting it done 243panels could pro
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getting it done 245international ro
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getting it done 247scheme is now ir
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getting it done 249of forest resour
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getting it done 251standing and com
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getting it done 253peace agreements
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getting it done 2551997 and 2001 (
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getting it done 257themselves with
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getting it done 259Box 6.3 Mandator
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getting it done 261agencies, and ci
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getting it done 263enterprises coul
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getting it done 265ethical investme
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getting it done 267Advocacy groups
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getting it done 269principles, with
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getting it done 271more sexy than l
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getting it done 273to focus the att
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getting it done 275Given that it de
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getting it done 277The assessments
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getting it done 27925. See www.inte
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getting it done 281ReferencesThe wo
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getting it done 283Harden, Blain. 2
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getting it done 285Africa: Assessin
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chapter 7Attracting Reputable Compa
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attracting reputable companies 289h
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attracting reputable companies 291i
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attracting reputable companies 293b
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attracting reputable companies 295t
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attracting reputable companies 297T
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attracting reputable companies 301S
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attracting reputable companies 303h
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attracting reputable companies 307o
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attracting reputable companies 315e
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attracting reputable companies 317I
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attracting reputable companies 321i
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attracting reputable companies 325$
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attracting reputable companies 327
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attracting reputable companies 329m
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attracting reputable companies 331t
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attracting reputable companies 333L
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attracting reputable companies 335a
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attracting reputable companies 337N
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attracting reputable companies 343s
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attracting reputable companies 345a
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attracting reputable companies 347G
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attracting reputable companies 349W
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attracting reputable companies 351A
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chapter 8Dampening Price ShocksPatr
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dampening price shocks 355in lower
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dampening price shocks 357the agree
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dampening price shocks 359common re
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dampening price shocks 361flexibili
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dampening price shocks 363create a
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dampening price shocks 365different
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dampening price shocks 367———
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370 indexand Pakistan, 170; possibl
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372 index“Dutch disease,” 82; r
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374 indexeconomic rationale for, 34
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376 indexor regional arrangements,
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378 indexstandards and norms, 172,1
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380 indexEmbargoes: and black marke
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382 indexRUF-controlled areas in Si
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384 indexForest Law Enforcement and
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386 indexGreater Nile Petroleum Ope
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388 indexInformation technology:
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390 indexand reputation, 294-97; mi
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392 indexLiberia audit its use of r
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394 indexMorley Fund Management:inv
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396 indexOffice of the High Commiss
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398 indexPolicy recommendations for
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400 indexnatural resource revenues,
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402 indexSri Lanka: double agenda o
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404 indexover-allocation of logging
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406 index156-57 n7; pilot program t
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408 indexWal-Mart: child labor rest
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Violent conflict can spell catastro
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