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The “resource curse” from the oil and natural gas sector: how can Tanzania avoid it in reality?

Obadia Kyetuza Bishoge () and Benatus Norbert Mvile
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Obadia Kyetuza Bishoge: University of Ibadan
Benatus Norbert Mvile: University of Ibadan

Mineral Economics, 2020, vol. 33, issue 3, No 8, 389-404

Abstract: Abstract The discovery of a lot of natural resources such as petroleum, natural gas, and minerals has become the source of poverty, deprivation, and inequality in some countries. The failure to properly use those resources has been associated with the “resource curse” or “paradox of plenty” concept. This happens when the resource-rich countries fail to benefit fully from their natural resources’ wealth, something that leads to the failure of the governments of the relevant countries to respond effectively and efficiently to public welfare requirements. In recent years, Tanzania has discovered a lot of oil and gas resources which are expected to contribute more to the sustainable development of the country. However, the question here is whether Tanzania will not face the challenge of resource curse as it has been observed in other developing countries that are rich in natural resources. Thus, this paper is intended to analyze the relationship between the resource curse, natural resources, and economy. It examines the resource curse in some contracting countries such as Zambia, Nigeria, and Gabon. It furthermore pinpoints on how Tanzania can avoid the resource curse.

Keywords: Integrated political economy; Natural resources; Oil and gas resources; Resource curse; The Dutch disease (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s13563-020-00235-2

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