Re:With oil cheap, Arab states cannot balance their books
by coliveira on Tuesday July 21, 2020 @01:46PM
(#23909014)
The real cause of Dutch disease is not economical, but political. Political forces formed from the exploration of oil (and other resources, like banana-producing land in central America) will not allow for the formation of a diversified industry where they will have less ability to control the host country. These political forces are a combination of both external (developed nations) and small minorities that benefit from the maintenance of the status quo.
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Re:With oil cheap, Arab states cannot balance their books
by pydry on Wednesday July 22, 2020 @06:17AM
(#23915550)
Dutch disease was named after the Netherlands where the phenomenon was first observed - with North Sea oil. It was a highly valued currency, not politics, that rendered Dutch exports noncompetitive and shrank foreign investment.