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Natural Resource Development, Ecologies and Transnational Alliance…

- - - - seen as a comparative advantage
    - - Push for capitalism as way to promote a sustained economic growth
        
        However study by Sachs and Warner (1995) show that there is not necessarily a correlation between the two
- - - - capitalism diminishes the idea of spatial barriers
        
        exploits resources until they are exhausted
  - - - only a catalyst, no direct relations with the use of capital
        
        no connection between the source of revenue and regional development
- - - - unified government principles
        
        unified target of economic profit
    - - political interests dominate
- - - - reduced state bargaining power
  - - - vulnerable to external shocks
      - Taxes almost exclusively from oil
  - - - political instability
        
        colonial history
        
        intensified ethnic divides due to efforts of the british to gain control
        
        Nigeria became a country with three distinct and strong ethnicities/identities
        
        CONSEQUENTLY
        
        weak central state
        
        risk for ethnic and political conflicts
        
        1 more item...
- - - - 5 year plan
        
        strengthen security arrangements
        
        large subsidies to local firms
        
        state owned enterprises
        
        reorganisation limited state control to stop it from becoming over centralised
        
        Petromin- saudi state oil company
  - - - bought (deposited) billions of dollars in US federal reserve
        
        by doing this they ensured that it would keep its place as a dominant and stable currency
  - - - Saudi dominance
      - Saudi Arabia the largest producer of oil in the world
        
        high monetary source of income
  - - - oil ruling classes held power, and took power
        
        lack of radical changes of the riling elite, and their control over the state apparatus reduced crises that could arise due to political instability