Djibouti's unusual resource curse

An extensive literature on the ‘resource curse’ posits that abundant natural resources ‘curse’ countries possessing them with negative economic, social and political externalities. Usually, scholars identify tangible resources like oil, diamonds or timber, rarely questioning whether other kinds of r...

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Bibliographic Details
Published in:The Journal of modern African studies 2008-12, Vol.46 (4), p.523-545
Main Author: Brass, Jennifer N.
Format: Article
Language:English
Subjects:
Africa
African studies
Area studies
Decision making
Diamonds
Djibouti
Economic conditions
Economic development
Economic policy
Economic rent
Economic resources
Economics
International trade
Livestock
Military
Military bases
Natural resources
Oil
Policy making
Political economy
Politics
Resource economics
Sharing economy
Terrorism
Timber
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Summary:An extensive literature on the ‘resource curse’ posits that abundant natural resources ‘curse’ countries possessing them with negative economic, social and political externalities. Usually, scholars identify tangible resources like oil, diamonds or timber, rarely questioning whether other kinds of resources might have the same impact, and under what conditions. This paper examines how little-studied Djibouti's non-tangible resources – geo-strategic location and aid-inspiring poverty – have produced ‘curse’ effects; with an economy dominated by US and French military spending (and concomitant aid) and rents on trade passing to and from Ethiopia, tiny Djibouti suffers from this curse. It draws four conclusions. First, resource curse effects can derive from non-traditional sources. Second, leaders' policy decisions matter at least as much as the presence or absence of resources. Third, advanced countries' spending patterns in their less-developed allies often produce unintended consequences. Finally, even tiny countries can provide scholars and policy makers with new insights.
ISSN:0022-278X
1469-7777
DOI:10.1017/S0022278X08003479