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The resource paradox is a surprising phenomenon, which has a tendency to exist in the modern world due to the fact the countries have a tendency to exploit one another. Despite being rich, the countries, which have a high supply of the natural resources, lack investment in their local economy due to the insufficient government structure, high corruption rates, and underdeveloped environmental laws, and are considered as having a poor condition of the economy and causing the significant damage to the world environment.
In this instance, it is unclear whether being rich in oil, gas, and other natural resources is an advantage or a curse. The primary goal of this assignment is to discover and identify the areas, which are actively exploited and determine the principal reasons for the lack of the investment of the revenues into the local economy. This essay will contribute to the discovery of the potential grounds for the existence of the resource paradox. In the end, the conclusions are drawn.
One of the countries, which is actively exploited for its oil, is Nigeria. The film Delta Boys clearly portrays that the state exists in the continuous struggle since there is a substantial conflict between the countries for the ownership of the Nigerian oil supply (Delta Boys). Moreover, this movie displays the inequality between different classes of Nigerian population and the rest of the world, which exploits the country for its economic interests.
This situation occurs due to the inability of the Nigerian governmental authorities to contribute to finding and establishing a sufficient solution to the conflict. Some other countries, which are actively exploited, include Venezuela and Colombia (Rapoza par. 2). These countries are rich in natural resources such as gas and oil.
However, the economic, political, and social conditions still remain at a low quality, as these countries are actively exploited by more powerful states. It is evident that multinational companies violate the rights of the population and use their territory and their natural resources for the commercial purposes. It could be said that in the instance of Venezuela, the beneficial impact of the oil industry is questionable since it can be considered as one of the reasons for the political instability in the country (Kott 69).
It remains unclear what the primary cause of the poverty and inequality in the exploited oil countries is, as the revenues from this industry remain high. Nonetheless, in the case of Nigeria, one of the reasons is governmental inability to introduce sophisticated policies to control the income from the oil industry (Ushie, Adeniyi and Akonwale 30). It is evident that the legal authorities of all the primary ‘poor’ oil producers are not able to control and monitor all the actions of the foreign companies, which actively operate in their territories.
It could be said that it is one of the substantial reasons for the occurrence of this situation. Consequently, another reason can be explained by the fact that the foreign companies have a tendency to violate the rules and regulations of the agreements. Nonetheless, the inability to introduce and maintain a sufficient legal framework and vehement violation of the human rights are the main causes of the unsuitable situation in the countries (Oluduro 160).
Moreover, the Commonwealth of the country is dependent on the ability of the multinational oil extractors to follow the rules and respect the rights of the Nigerian communities. Nevertheless, these aspects are substantial reasons for the inability of the profits of energy extraction to contribute to the wealth of the local communities.
Additionally, corruption is another reason for the inability of the ‘poor’ oil countries to gain high profits from the extraction of the natural resources. In this case, the high revenues are the primary causes of high corruption rates in Angola and Venezuela (Hammond 348).
In this instance, it seems that being rich in the natural resources and oil is a primary cause of instability of the government, lack of sufficient administration, and high and regular violation of rights and rules. It is evident that the destructive desire for ownership cannot be underestimated, as it leads to the instability in the exploited country and results in the significant environmental damage to the world.
Moreover, the insufficient government bureaucracy results in the lack of coherent environmental laws. This matter has an adverse effect on the local community and environment (Oluduro 160). In this case, it is evident that the government is highly responsible for its population and providing relevant living conditions to the members of the communities.
Nonetheless, the government is not able to provide enough protection to maintain the quality of life on the high level due to lack of maintenance and control over the actions of multinational oil corporations, which operate on the territory of the country. In this instance, it is apparent that governmental carelessness is a primary cause of the problems, as the national authorities do not pay vehement attention to the state of the development of the society and economy of the country.
It is evident that non-renewable natural resources will continue to decrease in amount due to the inability to satisfy the steadily growing demand (A Crude Awakening: The Oil Crush). The competition in this sector will continue to rise, and it is the fundamental cause of the high competition between the international oil companies.
It is evident that they want to increase their market shares and sustain their positions in the industry on the coherent level. Otherwise, they will not be able to compete on the market since they will lack a strong competitive advantage. In this case, the companies do not pay vehement attention to the green policies since their primary goal is to increase the company’s revenues and strengthen their positions on the market.
The film The Last Mountain also portrays that the desire for the ownership of natural resources outweighs the common sense (The Last Mountain). In this instance, it is evident that the oil extractors do not have a tendency to support green policies. For example, Gasland displays the fact the gas extractor destroy the environment with drilling (Gasland). These films show the intensity of the competition affects the company’s attitude towards the environment.
Consequently, these movies reveal that the oil and gas extractors have a tendency to violate the environmental policies, as the profit generation is the key driver for their economic stability. Moreover, following the environmental policies will have a strong effect on their revenues.
Consequently, it is evident that the countries, which are actively exploited for the natural resources are the main reasons for pollution since, in this instance, no attention is paid to the Commonwealth of the local communities or to the environmental contamination. It could be said that Nigeria is one of the primary reasons for the strong aquatic pollution due to the insufficient environmental laws in the oil industry (Ekubo and Abovei 673).
The pollution causes significant damage to the inhabitants of the ocean and the vegetation of the beach areas. It is evident that it leads to the extensive damage to the global environment, as the levels of pollution in Nigeria remain high. Moreover, a similar situation takes place in Colombia and Venezuela, as the countries do not have well-established environmental policies.
In this case, the government is entirely responsible for the occurrence of this situation, as it does not control the actions of the international oil companies and does not monitor their abilities to follow the environmental policies and regulations.
It is evident that the solution to this issue has to be found rapidly, as the environmental damage remains on the high level and causes adverse changes to the environment. In turn, it affects the world population including animals and vegetation in a hostile way and has to be vehemently controlled by the governmental authorities.
In conclusion, it could be said that this paradox will have a tendency to occur as long as the dominant bureaucratic system, vehemently established hierarchy, and the ranking of the countries exist. The government’s inability to control the situation results in the cultivation of violence and poverty in the country.
Moreover, it results in high corruption rates, violation of human rights, and damage to the environment. In this instance, it is evident that the fight for the ownership of the natural resources contributes to the violation of the human rights and damage to the environment.
Works Cited
A Crude Awakening: The Oil Crush. Ex. Prod. Basil Gelpke and Ray McCormack. Zurich: Lava Productions AG. 2006. DVD.
Delta Boys. Ex. Prod. Andrew Berends. Long Beach: Storyteller Productions. 2012. DVD.
Ekubo, Allen, and John Abovei. “Aspects of Aquatic Pollution in Nigeria.” Research Journal of Environmental and Earth Sciences 3.6 (2011): 673-693. Print.
Gasland. Ex. Prod. Josh Fox. New York: New Video Group. 2010. DVD.
Hammond, John. “The Resource Curse and Oil Revenues in Angola and Venezuela.” Science & Society 75.3 (2011): 348-378. Print.
Kott, Adam. “Assessing Whether Oil Dependency in Venezuela Contributes to National Instability.” Journal of Strategic Security 5.3 (2012): 69-86. Print.
Oluduro, Olubayo. “Oil Exploitation and Human Rights Violations in Nigeria’s Oil Producing Communities.” Africa Focus 25.2 (2012): 160-166.
Rapoza, Kenneth. “World’s Richest Oil Nations Still Poor.” Forbes 2013. Web.
The Last Mountain. Ex. Prod. Bill Haney. Los Angeles: Uncommon Productions. 2011. DVD.
Ushie, Vanessa, Oluwatosin Adeniyi and Sabastine Akonwale. “Oil Revenue, Institutions and Macroeconomic Indicators in Nigeria.” OPEC Energy Review 37.1 (2013): 30-52. Print.
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