2 - Politics Does Matter: The Nigerian State and Oil (Resource) Curse
Corresponding Author(s) : Omobolaji Ololade Olarinmoye
Africa Development,
Vol. 33 No. 3 (2008): Africa Development
Abstract
Conventional explanations of the resource curse, or the paradox of abundance, correlate resource abundance and bad economic policies, underdevelopment, poverty and conflict. Such a conclusion has become debatable and has encour- aged analysts to develop conditional explanations that emphasize the role of the political rather than economic factors in the mechanisms underpinning the re- source curse. Using the Inter-governmental Fiscal Relations system in Nigeria as an example, this paper argues that, while the policy choices of politicians determines how resource rents are utilized, the extent to which political institutions promote the use of rational and meritocratic criteria in allocating public sector resources and ensure accountability is what matters. This is of crucial impor- tance in determining whether resource abundance will lead to resource curse.
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- African Network for Environment and Economic Justice (ANEEJ), 2004, Oil of Poverty in the Niger-Delta, Port-Harcourt.
- Aiyede, E. R. and Adefemi Isumonah, V., 2002, Towards Democratic Consolidation: Executive-Legislative Relations and the Budget Process in Nigeria, Development Policy Center Research Report, No. 52, 28pp.
- Akindele, S.T. and Olaopa, 2002, Fiscal Federalism and Local Government Finance in Nigeria, UNPAN document.
- Alm, J. and Boex, J., 2002, ‘An Overview of Intergovernmental Fiscal Relations and Sub-national Finance in Nigeria’, International Studies Program Working Papers 02-1.
- Amuwo, Kunle et al., eds., 1998, Federalism and Political Restructuring in Nigeria, Ibadan: Spectrum Books.
- Anyawu, John C., 1995, ‘Revenue Allocation and Stable Fiscal Federalism in Nigeria’, Journal of Economic Management, Vol. 2 No. 2, October.
- Bahl, R. and Wallace,S., Intergovernmental Transfers: The Vertical Sharing Dimension, Andrew Young School of Policy Studies, Atlanta.
- Basedau, M., 2005, ‘Context Matters-Rethinking the Resource Curse in Sub- Saharan Africa’, Working Paper, No. 1, Institute of African Affairs, German Overseas Institute.
- Bird, R. M. and Smart, M., 2001, Intergovernmental Fiscal Transfers: Some Lessons from International Experience, Hilosubashi University, Tokyo.
- Briquet, J-L., 1999, ‘Italie: Un Système de Pouvoir en procès’, Critique Internationale, No. 3, Printemps. Collier, P. and Hoeffler, Anke, 2002, ‘On the Incidence of Civil War in Africa’, Journal of Conflict Resolution, 46(1): 13-28.
- Daloz, J-P., 2002, ‘Cultural Heritage and Enduring Mentalities: Reflections on Political Representation and Accountability’, Conference on Culture, Democracy and Development, Monte Verita, Switzerland, 6 -11 October.
- Daloz, J-P., 2002, Elites et représentations politique: La Culture de l‘échange inégal au Nigeria, Pessac, Presse Universitaire de Bordeaux, 174p.
- Daloz, J-P., 2003, Political Representation and the Connection between Symbols of Distinction and Symbols of Likeness, ECPR Workshop on Political Representation, Edinburgh.
- Daloz, J-P., ed., 1999, ‘Le (non)-Renouvellement des Elites en Afrique Subsaharienne’, Talence: CEAN, IEP, Bordeaux.
- Dunning, Thad., 2005, ‘Resource Dependence, Economic Performance and Political Stability’, Journal of Conflict Resolution, Vol. 49, No. 4, 595-624.
- Ehtishan, A. and Singh, R., 2003, ‘Political Economy of Oil Revenue Sharing in a Developing Country: Illustrations from Nigeria’, IMF Working Paper 03/16.
- Ekpo, Akpan H., 2004, Inter-governmental Fiscal Relations: The Nigerian Experience, 10th year Anniversary of the Financial and Fiscal Commission of South Africa, 10-12 August.
- Englebert, P., 2000, State Legitimacy and Development in Africa, Boulder, CO: Lynne Reinner.
- Fearon, J. and Laitin, 2003, ‘Ethnicity, Insurgency and Civil War’, American Political Science Review, Vol. 97(1): 75-90.
- Fjeldstad, Odd-Helge, 2001, ‘Intergovernmental Fiscal Relations in Developing Countries: A Review of Issues’, CMI Working Papers, No. 11.
- Garraud, P., 1999, ‘Les Nouveaux Judes de Politique en rance’, Critique Internationale, No. 3, Printemps.
- Inter-Parliamentary Union, 1986, Parliaments of the World: A Comparative Reference Compendium (2nd Edition), Aldershot: Gower Publishing.
- Lacam, J-F., 1988, Le Politicien Investisseur: Un Modele d‘interpretation de la gestion des resources politiques, Revue Française de Sciences Politiques, Vol. 38, 1.
- Mbanefoh, G. F. and Egwaikhide F., 1998, ‘Revenue Allocation in Nigeria: Derivation Principle Revisited’ in Amuwo Kunle et al., eds., Federalism and Political Restructuring in Nigeria, Ibadan: Spectrum Books.
- Mbanefoh, G. F., 1986, ‘Military Presence and the Future of Nigerian Fiscal Federalism,’ Faculty Lecture Series, Faculty of Social sciences, University of Ibadan, Nigeria, No. 1.
- Mbanefoh, G. F., 1989, ‘ Public Finance’ in Kayode M. O. and Y. B. Usman, eds., The Economy, Vol. 2, Nigeria Since Independence History Project, Heinemann Educational Books (Nigerian) Limited.
- Ndubisi, O., 2004, Political Finance and Democracy in Nigeria: Prospects and Strategies for Reform, Centre for Law and Social Action (CLASDA), Lagos.
- Nigeria, Federal Republic of , 1999, Constitution of the Federal Republic of Nigeria, Lagos: Federal Government Printer.
- African Network for Environment and Economic Justice (2004) Oil of Poverty in Niger-Delta, ANEEJ, Port-Harcourt.
- Okigbo, P., 1965, Nigerian Public Finance, Evanston: Northwestern University Press.
- Olarinmoye, O. O., 2004b, Sanjay Joshi, 2002, Fractured Modernity: Making of a Middle Class In Colonial India, Oxford University Press, A Book Review Submitted to the Center for Studies in Social Sciences, Kolkata/SEPHIS International Research Fellowship Programme (IRTP 2004).
- Oyediran, O. and Olagunju, O., 1984, ‘The Military and the Politics of Revenue Allocation’ in Oyediran, O., ed., Nigerian Government and Politics Under the Military Rule, London, Macmillan Publishers, pp. 192-211.
- Robinson et al., 2005, ‘Political Foundations of the Resource Curse’, Manuscript, Department of Government, Harvard University, Cambridge.
- Ron, J., 2005, ‘Paradigm in Distress? Primary Commodities and Civil War’, The Journal of Conflict Resolution, pp. 443-450.
- Ross, M., 2002, ‘Booty Futures’, Working Paper, University of California, Los Angeles.
- Ross, M., 2003, ‘Oil, Drugs and Diamonds: How Do Natural Resources Vary In Their Impact on Civil Wars?’, in Ballentine, Karen and Sherman, Jake, eds., Beyond Greed and Grievance: The Political Economy of Armed Conflict, Boulder CO, Lynne Reinner.
- Rosser, A., 2006, ‘The Political Economy of the Resource Curse: A Literature Review’, IDS Working Paper, No. 268.
- Sachs, J. D. and Warner, A., 1999, ‘The Big Push, Natural Resource Booms and Growth’, Journal of Development Economics, 59, pp.43-76.
- Tamuno, Tekena T., 1998, ‘Nigeria Federalism in Historical Perspective’ in Kunle Amuwo et al. Federalism and Political Restructuring in Nigeria, pp. 13-33.
- Uche, C.U. and Uche, O.C., 2004, ‘Oil and the Politics of Revenue Allocation in Nigeria’, ASC Working Paper, No. 54, African Studies Centre, Leiden, The Netherlands.
- Ugochukwu, F., 2004, ‘Book Review of Elites et Représentations Politique: La Culture de l`échange Inégal au Nigeria, Passac’, Presse Universitaire de Bordeaux, Cahier d`études Africaine, Vol. 176.
- Weinstein, J. M., 2005, ‘Resources and the Information Problem in Rebel Recruitment’, Journal of Conflict Resolution, Vol. 49, No. 4, 595-624."
References
African Network for Environment and Economic Justice (ANEEJ), 2004, Oil of Poverty in the Niger-Delta, Port-Harcourt.
Aiyede, E. R. and Adefemi Isumonah, V., 2002, Towards Democratic Consolidation: Executive-Legislative Relations and the Budget Process in Nigeria, Development Policy Center Research Report, No. 52, 28pp.
Akindele, S.T. and Olaopa, 2002, Fiscal Federalism and Local Government Finance in Nigeria, UNPAN document.
Alm, J. and Boex, J., 2002, ‘An Overview of Intergovernmental Fiscal Relations and Sub-national Finance in Nigeria’, International Studies Program Working Papers 02-1.
Amuwo, Kunle et al., eds., 1998, Federalism and Political Restructuring in Nigeria, Ibadan: Spectrum Books.
Anyawu, John C., 1995, ‘Revenue Allocation and Stable Fiscal Federalism in Nigeria’, Journal of Economic Management, Vol. 2 No. 2, October.
Bahl, R. and Wallace,S., Intergovernmental Transfers: The Vertical Sharing Dimension, Andrew Young School of Policy Studies, Atlanta.
Basedau, M., 2005, ‘Context Matters-Rethinking the Resource Curse in Sub- Saharan Africa’, Working Paper, No. 1, Institute of African Affairs, German Overseas Institute.
Bird, R. M. and Smart, M., 2001, Intergovernmental Fiscal Transfers: Some Lessons from International Experience, Hilosubashi University, Tokyo.
Briquet, J-L., 1999, ‘Italie: Un Système de Pouvoir en procès’, Critique Internationale, No. 3, Printemps. Collier, P. and Hoeffler, Anke, 2002, ‘On the Incidence of Civil War in Africa’, Journal of Conflict Resolution, 46(1): 13-28.
Daloz, J-P., 2002, ‘Cultural Heritage and Enduring Mentalities: Reflections on Political Representation and Accountability’, Conference on Culture, Democracy and Development, Monte Verita, Switzerland, 6 -11 October.
Daloz, J-P., 2002, Elites et représentations politique: La Culture de l‘échange inégal au Nigeria, Pessac, Presse Universitaire de Bordeaux, 174p.
Daloz, J-P., 2003, Political Representation and the Connection between Symbols of Distinction and Symbols of Likeness, ECPR Workshop on Political Representation, Edinburgh.
Daloz, J-P., ed., 1999, ‘Le (non)-Renouvellement des Elites en Afrique Subsaharienne’, Talence: CEAN, IEP, Bordeaux.
Dunning, Thad., 2005, ‘Resource Dependence, Economic Performance and Political Stability’, Journal of Conflict Resolution, Vol. 49, No. 4, 595-624.
Ehtishan, A. and Singh, R., 2003, ‘Political Economy of Oil Revenue Sharing in a Developing Country: Illustrations from Nigeria’, IMF Working Paper 03/16.
Ekpo, Akpan H., 2004, Inter-governmental Fiscal Relations: The Nigerian Experience, 10th year Anniversary of the Financial and Fiscal Commission of South Africa, 10-12 August.
Englebert, P., 2000, State Legitimacy and Development in Africa, Boulder, CO: Lynne Reinner.
Fearon, J. and Laitin, 2003, ‘Ethnicity, Insurgency and Civil War’, American Political Science Review, Vol. 97(1): 75-90.
Fjeldstad, Odd-Helge, 2001, ‘Intergovernmental Fiscal Relations in Developing Countries: A Review of Issues’, CMI Working Papers, No. 11.
Garraud, P., 1999, ‘Les Nouveaux Judes de Politique en rance’, Critique Internationale, No. 3, Printemps.
Inter-Parliamentary Union, 1986, Parliaments of the World: A Comparative Reference Compendium (2nd Edition), Aldershot: Gower Publishing.
Lacam, J-F., 1988, Le Politicien Investisseur: Un Modele d‘interpretation de la gestion des resources politiques, Revue Française de Sciences Politiques, Vol. 38, 1.
Mbanefoh, G. F. and Egwaikhide F., 1998, ‘Revenue Allocation in Nigeria: Derivation Principle Revisited’ in Amuwo Kunle et al., eds., Federalism and Political Restructuring in Nigeria, Ibadan: Spectrum Books.
Mbanefoh, G. F., 1986, ‘Military Presence and the Future of Nigerian Fiscal Federalism,’ Faculty Lecture Series, Faculty of Social sciences, University of Ibadan, Nigeria, No. 1.
Mbanefoh, G. F., 1989, ‘ Public Finance’ in Kayode M. O. and Y. B. Usman, eds., The Economy, Vol. 2, Nigeria Since Independence History Project, Heinemann Educational Books (Nigerian) Limited.
Ndubisi, O., 2004, Political Finance and Democracy in Nigeria: Prospects and Strategies for Reform, Centre for Law and Social Action (CLASDA), Lagos.
Nigeria, Federal Republic of , 1999, Constitution of the Federal Republic of Nigeria, Lagos: Federal Government Printer.
African Network for Environment and Economic Justice (2004) Oil of Poverty in Niger-Delta, ANEEJ, Port-Harcourt.
Okigbo, P., 1965, Nigerian Public Finance, Evanston: Northwestern University Press.
Olarinmoye, O. O., 2004b, Sanjay Joshi, 2002, Fractured Modernity: Making of a Middle Class In Colonial India, Oxford University Press, A Book Review Submitted to the Center for Studies in Social Sciences, Kolkata/SEPHIS International Research Fellowship Programme (IRTP 2004).
Oyediran, O. and Olagunju, O., 1984, ‘The Military and the Politics of Revenue Allocation’ in Oyediran, O., ed., Nigerian Government and Politics Under the Military Rule, London, Macmillan Publishers, pp. 192-211.
Robinson et al., 2005, ‘Political Foundations of the Resource Curse’, Manuscript, Department of Government, Harvard University, Cambridge.
Ron, J., 2005, ‘Paradigm in Distress? Primary Commodities and Civil War’, The Journal of Conflict Resolution, pp. 443-450.
Ross, M., 2002, ‘Booty Futures’, Working Paper, University of California, Los Angeles.
Ross, M., 2003, ‘Oil, Drugs and Diamonds: How Do Natural Resources Vary In Their Impact on Civil Wars?’, in Ballentine, Karen and Sherman, Jake, eds., Beyond Greed and Grievance: The Political Economy of Armed Conflict, Boulder CO, Lynne Reinner.
Rosser, A., 2006, ‘The Political Economy of the Resource Curse: A Literature Review’, IDS Working Paper, No. 268.
Sachs, J. D. and Warner, A., 1999, ‘The Big Push, Natural Resource Booms and Growth’, Journal of Development Economics, 59, pp.43-76.
Tamuno, Tekena T., 1998, ‘Nigeria Federalism in Historical Perspective’ in Kunle Amuwo et al. Federalism and Political Restructuring in Nigeria, pp. 13-33.
Uche, C.U. and Uche, O.C., 2004, ‘Oil and the Politics of Revenue Allocation in Nigeria’, ASC Working Paper, No. 54, African Studies Centre, Leiden, The Netherlands.
Ugochukwu, F., 2004, ‘Book Review of Elites et Représentations Politique: La Culture de l`échange Inégal au Nigeria, Passac’, Presse Universitaire de Bordeaux, Cahier d`études Africaine, Vol. 176.
Weinstein, J. M., 2005, ‘Resources and the Information Problem in Rebel Recruitment’, Journal of Conflict Resolution, Vol. 49, No. 4, 595-624."