http://www.economist.com/node/21547793
This article presented an interesting look on the general belief behind the resource debate. Natural resources are a major shaping factor and influence in the economy and organization of the economic system of a country. The supported theory has been that resources are a curse through the attraction of rent seekers, but also the "Dutch Disease" with a less competitive manufacturing center. However, this article points out that in Texas currently and some of the other oil rich areas we are not seeing a curse, but rather a boon. As one of the other bloggers posted, petroleum engineers are in high demand in the economy and although oil itself as a fuel source is not sustainable there has been a lot of growth and wealth in the industry. What do you think will happen as sources dwindle further? Might Texas experience some of the same effects of the "Dutch Disease" that has commonly afflicted more developed oil-rich areas?
2 comments:
Despite any associated economic boom/benefit, I think there will still always be a resource curse because oil is not a sustainable option for the future. Not only is it harmful to the environment, but it causes a fairly large amount of corruption/competition which has the ability to negatively affect the economy. As sources continue to dwindle, I think other more sustainable options will be researched and developed. These greener technologies such as wind, geothermal, solar, etc. have the potential to create new jobs and stimulate an economy.
I believe the new energy sector will replace the older ones in the future. Just like human beings never imagine that they would have electricity in their life. We can never know what is gonna happen in the future. Maybe we cannot live until that time, but I have faith in scientists.
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