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Are They Predisposed to the Resources Curse? Oil in Somalia

Author

Listed:
  • Aaron Yao Efui Ahali

    (Department of Economics and International Studies, The University of Buckingham, UK.)

  • Ishmael Ackah

    (Economics and Finance Subject Group, University of Portsmouth, UK.)

Abstract
In many developing countries, natural resources such as oil and gas have had negative impact on economic development. There is a myriad of literature on the resource curse which shows an austere relationship: countries endowed with huge deposits of oil and gas usually experience lower economic growth than countries that do not have these resources. As a modern frontier region Somalia is one of the most promising countries blessed with oil and gas in the Eastern part of Africa. However, it is faced with political upheavals, weak state structures, physical insecurity, and property rights full of ambiguities; this makes it a challenge to exploit the country of its hydrocarbons. In addition to the present tense conditions within the region, the question that lingers, is whether or not Somalia is set to struggle with the common effect of the resource curse and paradox of plenty disorder? Somalia was selected because it provides an ideal laboratory to ascertain if she is predisposed to the resources curse disease. To this end, the study examines and also outlines the primary themes that guide the work using the case of Somalia as an addition to the body of empirical knowledge. The study recommends that new governance structures should be built, existing ones should be built, local content and local participation should be enhanced and the security and judicial agencies should be supported.

Suggested Citation

  • Aaron Yao Efui Ahali & Ishmael Ackah, 2015. "Are They Predisposed to the Resources Curse? Oil in Somalia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 231-245.
    • Handle: RePEc:eco:journ2:2015-01-18
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    References listed on IDEAS

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    2. Medase, S. Kehinde & Ahali, Aaron Yaw & Belitski, Maksim, 2023. "Natural resources, quality of institutions and entrepreneurship activity," Resources Policy, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Somalia; Resource Curse; Resource Rents; Oil; Governance.;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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