Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies

For over eighty years the Arab region has derived massive wealth from its natural resources, yet the region’s economies remain little diversified, while the oil market is experiencing major structural shifts with the advent of shale gas. Moreover, the resource itself is eventually exhaustible. Under these conditions economic prosperity cannot be sustainable. The critical question is how can the countries of this region escape the ‘oil curse’? In this volume, leading economists argue that the curse is not a predestined outcome but a result of weak institutions and bad governance. A variety of analytical perspectives and examination of various international case studies leads to the conclusion that natural resources can only spur economic development when combined with sound political institutions and effective economic governance. This volume, with its unique focus on the Arab region, will be an important reference for researchers and policy makers alike.

Table of Contents

Chapter 1 Overview of Context, Issues and Summary
Chapter 2 The Global Impact of the Systemic Economies and MENA Business Cycles
Chapter 3 Real Exchange Rates and Export Performance in Oil-dependent Arab Economies
Chapter 4 Dutch Disease in the Services Sector: Evidence from Oil Exporters in the Arab Region
Chapter 5 The Political Economy of Public Sector Employment in Resource-dependent Countries
Chapter 6 The Oil Curse and Labor Markets: The Case of Saudi Arabia
Chapter The Case of Saudi Arabia
Chapter 7 Resource Rents, Political Institutions and Economic Growth
Chapter 8 Fiscal Institutions in Resource-rich Economies: Lessons from Chile and Norway
Chapter 9 Savings and Investment Decisions from Natural Resource Revenues: Implications for Arab Development
Chapter 10 Labor Market Heterogeneity and Optimal Exchange Rate Regimes in Resource-rich Arab Countries
Chapter 11 The Institutional Curse of Natural Resources in the Arab World
Chapter 12 Has the UAE Escaped the Oil Curse?
Chapter 13 Understanding and Avoiding the Oil Curse in Sudan