Development Based on Commodity Revenues?

Sergei Guriev , Alexander Plekhanov (1) , Konstantin Sonin (2)

1 EBRD - European Bank for Reconstruction and Development
2 State University Higher School of Economics

Commodity resources offer significant opportunities for development. In the long run, however, the performance of commodity - rich countries tends to fall short of expectations, as commodity rents induce macroeconomic volatility and undermine incentives to improve institutions. The resource - rich countries have embraced a range of diversification strategies to avoid the “resource trap”, to varying degrees and with varying success. Improving institutions remains the key challenge.

Domains: Humanities and Social Sciences; Economics and Finance

Sergei Guriev, Alexander Plekhanov, Konstantin Sonin. Development Based on Commodity Revenues?. [Research Report] European Bank for Reconstruction and Development. 2009, pp.76 - 93. ⟨hal-03461797⟩