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The Natural Resource Curse: A Country Case Study—Tanzania

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Energy Economy, Finance and Geostrategy

Abstract

This research aimed to uncover factors that can help developing countries with significant amounts of natural resources in avoiding the so-called ‘natural resource curse’. Previous studies show mixed results; some countries show a surge in economic growth, whereas others end up with conflicts and environmental degradation, i.e. the natural resource curse. Posing local economic development and innovation as sources of national economic growth (the antithesis of the natural resource curse), this case study involved semi-structured interviews with various local stakeholders on the topic of recent natural gas findings in Tanzania. From the analysis of the interview data, a number of factors were uncovered that may lead to positive outcomes of resource exploitation and to chances to incorporate the interests of local communities. These factors include (1) the government, (2) knowledge and education, (3) local participation, (4) revenues, (5) transparency, (6) legal issues, and (7) finance and capital. Then, three scenarios were developed that give deeper insight into possible futures for the natural resource exploitation, using the previously identified factors. Lastly, a multi-criterion analysis (MCA) showed that the importance ranking of these factors is stable across a measure of needed change and a measure of uncertainty in the future. These seven factors then, can be seen as crucial for a successful exploitation and for creating opportunities for the local actor. Combining the qualitative scenario descriptions with a more quantitative MCA approach strengthens the results of this research.

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Author information

Authors and Affiliations

  1. Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands

    V. (Vera) Bekkers

  2. Global Economics and Management, University of Groningen, Groningen, The Netherlands

    B. J. W. (Bartjan) Pennink

Authors
  1. V. (Vera) Bekkers
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  2. B. J. W. (Bartjan) Pennink
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Corresponding author

Correspondence to B. J. W. (Bartjan) Pennink .

Editor information

Editors and Affiliations

  1. SBE, Department of Finance, VU University Amsterdam, Amsterdam, The Netherlands

    André B. Dorsman

  2. Energy and Sustainable Development Center, Kadir Has University, Istanbul, Turkey

    Volkan Ş. Ediger

  3. Department of Business Administration, Hacettepe University, Ankara, Turkey

    Mehmet Baha Karan

Appendix

Appendix

Scenario scores from Multi-criteria analysis

Factors

Weight

Current scenario

Positive scenario

Negative scenario

Max–Min

Max–Current

Total score per factor

Total score per factor

Total score per factor

1. Knowledge and education

4

7

15

6

9

8

2. Government

4

9.5

18

6

12

8.5

3. Legal

3

9

13.5

7.5

6

4.5

4. Contracts

2

7

8

4

4

1

5. Revenues

2

2

8.5

2

6.5

6.5

6. Local participation

2

3

10

2.5

7.5

7

7. Transparency

2

3

8

2

6

5

8. Finance and capital

2

5

9

4

5

4

9. Land

1

2

4

2

2

2

10. Standards

1

1

4.5

1

3.5

3.5

Total score per scenario

–

48.5

98.5

37

–

–

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Bekkers, V.(., Pennink, B.J.W.(. (2018). The Natural Resource Curse: A Country Case Study—Tanzania. In: Dorsman, A., Ediger, V., Karan, M. (eds) Energy Economy, Finance and Geostrategy. Springer, Cham. https://doi.org/10.1007/978-3-319-76867-0_13

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  • DOI: https://doi.org/10.1007/978-3-319-76867-0_13

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-76866-3

  • Online ISBN: 978-3-319-76867-0

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