Yet, the Dutch disease is still evoked in the resource curseliterature. Although increasingly eclipsed in popularity by institutionallybased explanations, the crowding-out economic logicof the Dutch disease remains a frequent explanation for the pooreconomic performance seen in many resource-rich countries.Botswana merits study here both as a significant potentialexception to the Dutch disease and also because the debate onwhether or not Botswana has avoided the Dutch disease is far lesssettled than it initially appears.Although distinct, the terms ‘‘Dutch disease’’ and ‘‘resourcecurse’’ are ‘‘frequently thought to be synonymous’’ (Davis, 1995, p.1768). As used here, Dutch disease is a much narrower term thanthe resource curse. At least five different dimensions are highlightedin the resource curse literature. First, resource-richcountries are alleged to not invest adequately in education(Gylfason, 2001; challenged by Stijns, 2006). Second, resourcerichcountries are subject to increased risks for civil war (Collierand Hoeffler, 2000; Ross, 2004). Third, resource-rich countrieshave difficulties in establishing or consolidating democratic formsof governance (Ross, 2001; Jensen and Wantchekon, 2004).Fourth, resource wealth is believed to lead to increased corruptionand have corrosive effects on the quality of institutions (Leite andWeidmann, 1999; partially challenged by Petermann et al., 2007).Finally, oil and mineral-rich states are seen as susceptible to the
Dutch disease and other ailments which ultimately produce slow
or negative economic growth (Sachs and Warner, 1995; Sachs and
Warner, 2001; challenged by Davis, 1995 and Stijns, 2005). This
article is solely concerned with the Dutch disease and does not
address other strands of the resource curse literature.
After first reviewing the basics of the Dutch disease model, the
article highlights some of the different positions previously
advanced on whether or not Botswana has experienced a Dutch
disease. My argument is that Botswana currently suffers from
many of the symptoms of the Dutch disease but not for the causal
reasons posited in the Dutch disease model.
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