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The Paradox of Plenty: Oil Booms and Petro-States (Studies in International Political Economy)
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Product details
Series: Studies in International Political Economy (Book 26)
Paperback: 380 pages
Publisher: University of California Press (October 10, 1997)
Language: English
ISBN-10: 0520207726
ISBN-13: 978-0520207721
Product Dimensions:
6 x 1 x 9 inches
Shipping Weight: 1 pounds
Average Customer Review:
4.2 out of 5 stars
8 customer reviews
Amazon Best Sellers Rank:
#370,464 in Books (See Top 100 in Books)
This book provides an iron-clad explanation for the failure of oil exporters - especially developing nations - to use their raw material blessings as a lever for improvement. The author provides outstanding comparisons among oil exporters, along with amazing parallels to the Spanish empire. There's an important point here about how human nature and government limitations often doom these "blessed" countries to failure. Call it the King Midas effect...On the downside, her point is clearly made in the first 50 pages. In the remainder of the book the author goes into too much detail regarding the political evolution of Venezuela. And she fails to end with a reader-friendly synopsis or a glimpse of the future.With today's troubles in the Mideast, this book could have been a lay-reader best seller. Unfortunately the author's writing is aimed more toward Political Science professors than the general public. Still worth the purchase, however.
This book, rich in detail, provides a penetrating look into the petro state and its consequences for economic and political development. Karl is especially adept at providing facts and analysis in her study of the Venezuelan oil boom and subsequent bust in the 1970s and 1980s. If you are looking for an in depth look into the reasons for rentier states' volatile and precarious development trajectories, or if you simply want to know more about those states' political economies, then this book is for you.
"[A]fter benefiting from the largest transfer of wealth ever to occur without war, why have most oil-exporting developing countries suffered from economic deterioration and political decay?" In her long-awaited study, Karl offers a sophisticated cross-cultural reply to this question, focusing on the capital-deficit countries of Algeria, Indonesia, Iran, Nigeria, and Venezuela. Finding inadequate the existing explanations that focus almost exclusively on economic disruption (the "Dutch Disease"), she notes the deep social and political roots of the problems and adds these much-needed dimensions to the discussion.Her complex argument boils down to this: oil booms (like all commodity booms) put enormous power in the hands of the state that suddenly has vast sums at its disposal. "How these states collect and distribute taxes, in turn, creates incentives that pervasively influence the organization of political and economic life and shapes government preferences to respect to public policies." In other words, "the origin of a state's revenues influences the full range of its political institutions." What appears to be a chance to do almost anything, it turns out, is in fact a very circumscribed choice.Though a Latin American specialist, Karl understands the Algerian and Iranian encounters with oil and has insights to offer all those who study Middle Eastern oil states-as well as those who lead them.Middle East Quarterly, December 1997
This book is a good contribution to the scholarship of one-good exporters, such as oil for many Middle Eastern countries and Venezuela. The author focuses on Venezuela, with occasional reference to other countries.The main thesis is that aside from the traditional Dutch disease of such intense exporters, there is an organizational component in the downfall of such plenty. For example, she argues that a large self-serving infrastructure and bureaucracy is built around the "pot of gold". She argues this may be one of the main causes that coutnries squander such valuable resources without ever refocusing them on the development of people (health and education) or the country's economy (such as through the extension of value-added activities).Overall, an interesting proposition, though I am not sure this is a phenomenon unique to countries faced with the plenty of oil or other products. It is a strong case that inefficiencies are added through bureaucracies, but I still believe much of the damage is caused by the traditional Dutch disease.
The Paradox of Plenty provides great detail and explanation into the world of Petro-States and the amazing similarities that oil-producing countries share (obviously with some exceptions). Terry Lynn Karl does an excellent job at explaining what are the most relevant factors that determine the successes and failures of Petro-States in their ability to "sow petroleum".The King Midas Effect and the Dutch Disease are used as descriptions and comparisons of the sickness that the majority of the countries blessed with oil suffer. The Paradox of Plenty, in my opinion, does an excellent job at narrowing and analyzing the political, economical and social decisions from the past 100-or-so years which led the Oil-producing Countries either into the developed world or on a straight path to under-development and corruption.I agree with some of the reviews in the sense that the book is written for academic purposes and it can be a little dense at the beginning. Nevertheless, once you get past the first 30+ pages, you become used to the writing and the book becomes interesting and enriching.The book bases most of its analysis and theses using Venezuela as an example. An oil-rich Country with one of the largest reserves in the world that has failed to make the jump into the developed world. This was another plus for me since, as a Venezuelan Citizen, the book taught me a great deal of history.It is definitely a must read. More specially for every politician who wishes to engage with the oil industry and must understand the mistakes from the past to avoid them in the present.
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