Natural Resource Curse

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The natural resource curse is the "paradox" of wealth in natural resources combined with crushing poverty. Two factors that contribute to this curse are "the income from these resources is often misappropriated by corrupt leaders instead of being used to support growth and development."

According to the case study, Botswana has ecaped the effects of the natural resource curse by creating good government policies, strong political leadership, and a sound long-term development plan. Because of these techniques, Botswana has been able to provide "quality public services such as education and health care to its citizens." Furthermore, anti-corruption laws and high civil engagement has made it harder for government officials to lie about where the country's money is going.

In contrast, Cote D'Ivoire is a country in Africa who has quite the opposite situation. Until 1999, Cote D'Ivoire was economically stable. After that, however, economic disparity, ethnicity, and religion contributed to escalating tensions between citizens. This led to a military coup and a civil war in September of 2002. Natural resources were critical in the development of conflict in this country; they are what fuel the military campaigns between the sides of the war. "Government troops have taken control of cocoa producing regions, while rebel forces in the North smuggle diamonds to buy small arms, food and medical supplies."

If the peace agreements are negotiated in Cote D'Ivoire, I think the government of Cote D'Ivoire could go to greater measures to prevent the effects of the natural resource curse in the future. The government could create strict laws limiting the amount of arms being shipped into the country, or at least an extensive background check before allowing them in. They could also make sure to distribute the wealth of the natural resources more evenly and put it to good use, such as to the school or healthcare systems. To add, they could regulate the imports of diamonds and other resources, so that less of them are being smuggled out of the country.

One way that Botswana has avoided the resource curse is through keeping aspects of the diamond trade in the country. For example, workers in Botswana don't just mine the diamonds, but they also cut and polish them, which makes for a more expensive diamond. They can distribute more wealth to their people, as well as put more money towarrs public services. Another way the government worked with the diamond industry is to own the Debswana Diamond Company equally with De Beers. Since the government owns half as much of the company as De Beers, they are able to make sure that Botswana gains steady revenue from diamond sales. And finally, "Debswana also invests in the community, building hospitals, schools, and recreational facilities for employees and local residents."

I think the international community could help stop the effects of the natural resource curse in Cote D'Ivoire and other developing countries by not buying their resources. If the developing countries who are experiencing civil war don't have the money to pay for weapons and food, they can't continue fighting and killing each other. Or, however, instead of stopping the purchase of a certain natural resource altogether, they could make sure they know exactly where the resource came from and whether or not it involves conflict before buying it. If it does, they can get the resource elsewhere, which would help the developing countries find peace more easily.

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