Escaping the Resource Curse

Macartan Humphreys is assistant professor of political science at Columbia University and publishes on the politics of economic policy making, bargaining theory, and rebel behavior in civil war. Jeffrey D. Sachs is the Director of The Earth Institute, Quetelet Professor of Sustainable Development, and Professor of Health Policy and Management at Columbia University. He is also Special Advisor to United Nations Secretary-General Ban Ki-moon and President and Co-Founder of Millennium Promise Alliance, a nonprofit organization aimed at ending extreme global poverty.He is author of hundreds of scholarly articles and many books, including The End of Poverty. Joseph E. Stiglitz is a University Professor at Columbia University and former chief economist and senior vice-president of the World Bank. Among his books is Globalization and Its Discontents, which has been translated into twenty-eight languages. In 2001 he was awarded the Nobel Prize in economics.

• Foreword, by George Soros Acknowledgments 1. Introduction: What Is the Problem with Natural Resource Wealth?, by Macartan Humphreys, Jeffrey D. Sachs, and Joseph E. Stiglitz Part I: Dealing with Oil Corporations 2. What Is the Role of the State?, by Joseph E. Stiglitz 3. How to Evaluate the Fiscal Terms of Oil Contracts, by David Johnston 4. How to Negotiate an Oil Agreement, by Jenik Radon 5. How Best to Auction Oil Rights, by Peter Cramton Part II: Managing the Macroeconomy 6. Are Oil Producers Rich?, by Geoffrey Heal 7. How to Handle the Macroeconomics of Oil Wealth, by Jeffrey D. Sachs 8. The Political Economy of Natural Resource Funds, by Macartan Humphreys and Martin E. Sandbu Part III: Handling the Politics 9. How Mineral-Rich States Can Reduce Inequality, by Michael L. Ross 10. Ensuring Fairness: The Case for a Transparent Fiscal Social Contract, by Terry Lynn Karl 11. Critical Issues for a Revenue Management Law, by Joseph C. Bell and Teresa Maurea Faria 12. Future Directions for the Management of Natural Resources, by Macartan Humphreys, Jeffrey D. Sachs, and Joseph E. Stiglitz Appendices 1. Abridged Sao Tome and Principe Oil Law 2. Abridged Timor-Leste Oil Law 3. Glossary of Oil Terms 4. Web Site References Contributors Index

This is a timely and important contribution to the debate on the so-called resource curse and how to avoid it-especially important in a time of concern about energy security and sustainable economic development. As someone who witnesses first hand the struggle for more transparency and good governance in the global energy business, I welcome the fresh, thought-provoking, and always illuminating insights offered in this collection of essays. -- Lord Browne, Group Chief Executive, BP (British Petroleum) This is a timely and important effort to throw light on and seek solutions to the phenomenon of the 'resource curse' whose effects have contributed to keeping millions of people impoverished despite the wealth of their countries. It should be an essential handbook for policy makers in all oil-rich countries. -- Ngozi Okonjo-Iweala, former Minister of Finance and Minister of Foreign Affairs for Nigeria A primer on ways governments and multinationals can ensure that resource wealth becomes not a curse but rather a source of sustained wealth. Canadian Business