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Improving Relations between a State and a Business Enterprise in the Context of Counteracting Adverse Effects of the Resource Curse

Marek Szturo (), Bogdan Włodarczyk (), Alberto Burchi (), Ireneusz Miciuła () and Karolina Szturo ()
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Marek Szturo: Department of Finance, Faculty of Economic Sciences, University of Warmia and Mazury, 10-720 Olsztyn, Poland
Bogdan Włodarczyk: Department of Finance, Faculty of Economic Sciences, University of Warmia and Mazury, 10-720 Olsztyn, Poland
Alberto Burchi: Department of Economics, University of Perugia, 06123 Perugia, Italy
Ireneusz Miciuła: Department of Sustainable Finance and Capital Markets, Faculty of Economics, Finance and Management, University of Szczecin, 70-453 Szczecin, Poland
Karolina Szturo: Department of Systems Engineering, Faculty of Technical Sciences, University of Warmia and Mazury, 10-719 Olsztyn, Poland

Sustainability, 2021, vol. 13, issue 3, 1-14

Abstract: Natural resources play a significant role in the development of the global economy. This refers, in particular, to strategic fuel and mineral resources. Due to the limited supply of natural resources and the lack of substitutes for most of the key resources in the world, the competition for the access to strategic resources is a feature of the global economy. It would seem that the countries which are rich in resources, because of this huge demand, enjoy spectacular economic prosperity. However, the results of empirical studies have demonstrated what is known as the ‘resource curse’. This article concentrates on the characteristics of the paradox of plenty, and in particular on the possibilities of preventing this phenomenon. The aim of this article is to identify the measures of economic policy with which to counteract the resource curse, based on the relationship between the state and the extraction business. Upon the critical analysis of the relevant literature, we concluded that the state’s economic policy, implemented in cooperation with the extraction business, is increasingly important for the prevention of the resource curse. In the context of the resource curse, the optimal and most consensual instrument, in comparison with other resource sharing agreements, is a production sharing agreement (PSA), which should also be adjusted to the current local economic conditions in a given country.

Keywords: fuel and mineral resources; resource curse; social and economic development; natural-resource rich countries; resource contract; business relations; economic policy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2021
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