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Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries

Adams, Dawda; Adams, Kweku; Ullah, Subhan; Ullah, Farid

Authors

Dawda Adams

Kweku Adams

Farid Ullah

Abstract

Motivated by recent inconclusive debates on the natural resource ‘curse’ phenomenon, this paper reviews studies that have explored the causes and implications of natural resource endowments ‘curse’ within oil-rich developing countries (ODCs). Most of these studies find corruption, transparency, accountability, weak institutions and poor governance as causes of developing countries’ natural resource ‘curse’. However, recent studies identify a strong association between oil and gas multinational corporations (MNCs) as agents of globalisation and the resource-curse. First, we consider the international dimensions of this relationship and how MNCs have an influence on the resources of ODCs. Second, we link the impact of MNCs and their natural resource nexus to broaden debates on strategic organisational practices. We show that globalisation creates the platform for the natural resource ‘curse’ phenomenon. Our findings offer new insights into the natural resource ‘curse’ debates. We expand knowledge on the traditional focus of the resource-curse literature to include globalisation and how ethical practices of MNCs could avert the ‘curse’ or allow ODCs to experience the advantages of their natural resource wealth.

Journal Article Type Article
Publication Date 2019-06
Print ISSN 0301-4207
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 61
Pages 128-140
Institution Citation Adams, D., Adams, K., Ullah, S., & Ullah, F. (2019). Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries. Resources policy, 61, 128-140. doi:10.1016/j.resourpol.2019.02.009
DOI https://doi.org/10.1016/j.resourpol.2019.02.009
Keywords Globalisation; Oil and gas multinational corporations; Management strategies; Profit maximisation; Natural resource ‘curse’
Publisher URL https://www.sciencedirect.com/science/article/pii/S0301420718306597?dgcid=author