Shrugging Off the "Resource Curse": A Comparison of Developing Nations

     It comes of no surprise that the phrase “resource curse” conjures up mental images of exploited citizens in oil rich nations; corrupt, politically unstable nations practically ruled by a certain mineral or export. And this would not be an incorrect typecasting. Nations such as Nigeria, Botswana, the Democratic Republic of the Congo are all countries still suffering from wealth that fails to disseminate to local populations, resulting in gross levels of inequity, and startlingly low Human Development Indexes. A combination of dishonest business practices, ulterior political agendas, and undue influence on the part of third party consumers has led to not only to numerous political collapses, but additionally, economic deterioration that has set the countries terribly far back in terms of market competition on a global scale.

     However, what can be pinpointed as the cause of such disastrous results? Is the presence of such a tempting venture always necessarily bad? Take for instance, Fiji, whose economy has largely been revitalized by the presence of several large mining corporations: Vatukoula Gold, Dome Gold, and Lion One Metals. Last month, Lion One received a thumbs up from the Fijian mining commission to continue on in developing several new processing plants. These externally-owned mines have been vital in bringing revenue in for the county. Another metal, Bauxite—a type of aluminum— is also harvested there, which brought in over $40 million in 2013 alone. Additionally, bauxite mining companies are working to provide assistance to families and the community helped jump start local economies centered around the mining facilities. Not only do the companies employ the local people, Fijian farmers are able to sell their crops to the workers from other islands on coming in to mine, which creates incentives for local agriculturalists, and has been essential in the movement from subsistence to commercial agriculture.

    The African nation of Angloa is another example of what could potentially be considered a developmental success—or at least a success in progress. While, admittedly, in the early 2000s, a civil war killed and displaced a large number of the populous, since then, the nation has taken positive strides. Though the president still has the ability to exercise an unfortunately large amount of power, there is still a National Assembly which is elected by a general, democratic vote. Unfortunately, this has been the primary advantage that Angola has incurred thus far, as poverty reductions have not been terribly drastic. But outside influences pushing the nation to enable its citizens have been helpful in the political realm—now actors must enable indigenous populations by promoting trade outside of the oil industry, and exporters must focus on building communities that will generate funds in supporting enterprises.

     Perhaps the stages of success can be attributed to the lessened outflows-- something largely prevalent in struggling African countries. The Fijian government works to ensure that funds return to the island, and are not entirely lost to their business partners, nor stay tangled up in an oligarchic few. Additionally, the limited number of external national influences also could be the reason for the reaches of success. Vatukoula is headquartered in London and both Lion One Metals, Dome Gold, and numerous Zinc mines are forefronted by Canadian companies. Bauxite mine in the province of Bua are owned locally, and have an agreement with a Chinese mining enterprise trading exports for numerous millions of dollars. On a sustainable note, the restrictions in this area can be linked to Fijian desires to ensure exploration occurs in a sustainable fashion and does not greatly overwhelm other social markets.
    Fiji stands out as having overcome what would typically be known as a “resource curse,” and though colonial ties can still be seen in the ownership of many mining corporations, it is one of the most prosperous nations in the Pacific island region. Angola still has many obstacles to overcome in order to ensure that it will not fall victim as so many other nations have, and its sponsors should use the nation of Fiji as an example of a positive feedback loop of investment. Though oil and gold are both essential in allowing many small, struggling economies to enter international markets, shifts towards commercialized agriculture, and the increasing of political involvement are the real treasures that must be sought after in the developing nations.


Sources:
http://www.fijitimes.com/story.aspx?id=190825
http://www.liononemetals.com/s/NewsReleases.asp?ReportID=679860&_Type=News-Releases&_Title=Lion-One-Receives-Environmental-Approvals-For-Construction-And-Development-...
http://www.cnn.com/2010/WORLD/africa/08/23/africa.resource.curse
http://www.cnn.com/2012/08/30/opinion/opinion-angola-development-elections/
http://www.chinadaily.com.cn/bizchina/2012-10/12/content_15814026.html