Curse Of Oil In The Developing Countries

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The Curse of Oil in the Developing Countries Introduction A prevailing controversy is whether oil producing countries benefit from the revenues generated of the oil or it will cause a reversed impact. This paper is based on several researches that have studied about the advantages and disadvantages of oil-led development is the oil rich countries. There is a predominant advocacy that oil income is a curse rather than a blessing especially in the developing countries. The revenues from the oil have caused severe negative impact in terms of level of poverty, rate of unemployment and industrialisation. Hence, people from the oil-rich countries not only have not become prosperous but also suffered through relatively lower living standards. There is another controversy discussing whether the developing oil producing countries are really doomed with the "oil curse" or there are ways to combat the negative outlook and improve the situation. Oil curse do not have to prevail forever and there are actually exceptions of economies being blessed by the oil-led development with adequate policies. Oil, blessing or curse? Advocates of oil-led development argue that oil rich countries are lucky to have access to the black gold (Karl, T. 2007). They emphasis on the potential benefits which the revenue from oil can bring such as job creation, poverty deduction, infrastructure development and encouragement in the industries. However there are proponents from the opposite side claiming that oil-led development cause slower growth, high rate of poverty, lower social welfare and increased unemployment in the society. Schubert, S. R. (2006) refers to the existing statistics related to accountability, corruption, diversification, transparency, authoritarianism, poverty and inequality and states oil is nothing but a curse. Macroeconomic policy in the oil producing countries meet
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