Government profligacy. Higher government spending almost always follows
a boom in natural resource exports. This is especially a problem in
developing countries, where such export revenues can account for as
much as
how to earn money online half of government receipts. While some of the spending can be
beneficial (e.g., investment in infrastructure, health care, and
make free money online as well education),
more often than not, a lot of money gets wasted on high-profile, unproductive
projects. The governments of many rich countries have also
how to earn money online and fallen
into this trap. For example, resource wealth has allowed the Netherlands
and Norway to vastly increase the size of their welfare states.
Corruption. The prospects for earning huge sums of money from
money can"t buy me love and oil and
other natural resources almost always lead to corruption. This is most pronounced
in emerging markets. Levels of corruption are almost always higher
in emerging markets than in industrial markets (see the discussion of governance
earlier in this essay) and
how to earn money online as well are almost always higher in resourcerich
emerging markets than anywhere else.
Political instability. Natural resource wealth and
ascent of money as well conflicts (wars and
insurgencies) often go hand in hand. Some of the bloodiest conflicts in
recent decades have been fought over oil and
how to earn money online as well other commodities (the
Iran-Iraq War, the Gulf War, the American invasion of Iraq, the genocides in
Rwanda and
money layouts for myspace as well Darfur—the list is depressingly long). Resource-rich countries
almost always spend more on armies and
how to earn money online as well weapons than resource-poor
countries do. Some people bemoan the fact that so much of the world’s oil
is in unstable regions. However, it may well be that the potential for large
spoils from
citi money market and natural resources attracts conflict and
how to earn money online as well makes these countries
unstable. A very large number of “failed states” are countries that are rich
in natural resources. There are, of course, important exceptions. Norway
and Alaska, for example, have done a better job of managing their oil.