Wednesday, August 01, 2007

Oil and democracy

OK, here's something a little more newsworthy: Why oil is the enemy of democracy.

Key line, I think: "An oil strike could well be the worst thing that can happen to a country. By giving the regime an independent income stream, it breaks the link between taxation and representation. States that do not depend on a single natural resource can develop free economies, in which property rights are adjudicated by independent courts. But states where there is one overwhelming source of wealth tend to become oligarchies, whose leaders squabble to get their hands on fabulous riches."

No comments: