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SUDAN

TUNISIA

EGYPT

LIBYALIBYAMAROCO

SOMALIA

RWANDA

African

Conflicts

CONFLICT DEATHS

Virgil Hawkins, New World Maps, Stealth Conflicts, December 30, 2008

ASIAMost of Asia is economically underdeveloped

“Approximately 790 million people in the developing world are still

chronically undernourished, almost two-thirds of whom

reside in Asia and the Pacific.”

930 million without electricity

For the 1.9 billion children from the developing world, there are:

640 million without adequate shelter (1 in 3)400 million with no access to safe water (1 in 5)270 million with no access to health services (1 in 7)

At least 80% of humanity lives on less than

$10 a day

but those countries are suffering…

also having ABUNDANT natural resources

AfricansDiamonds

Middle Easts

Product 1/3 of world’s OIL

Southeast AsiansRaw Materials Minerals

Metals

South AsiansAgricultures

Forests

Fishes

Sea Potentials

Coal

iron

Wood

Latin AmericasNatural Gas

Spices

Water

Wind

Gold

does natural resource exists as a killer of some country?

GDP

SPEE

D OF E

CONOM

IC GROW

TH

GROSS DOMESTIC PRODUCT“products produced within a country’s border”

GDP = C + I + G + (X-M)

•C: Consumption•I: Investment•G: Government•X-M: Net Export

CIVIL GOVERNMENT

HUMAN CAPITAL FOREIGNERS

ACCOUNTABILITY

POLITICAL STABILITY GOVERNMENT EFFECTIVENESS

REGULATORY QUALITY

CONTROL OF CORRUPTION

Limi (2007) & Kolstad (2009)

GOVERN

MENT

QU

ALIT

Yinstitutional

Interaction between rent seeking firms and corrupt government

Natural Resource Curse

appearsGDP flows negatively

CIVIL CONFLICTS AND NATURAL RESOURCE

Natural Resource (meningkat), Risk of War (Meningkat),And Conflict will be existing when government qualityPerforms negative, Collrer & Hoeffler (1998)

Start of Conflict War/Conflict Location Cumulative Fatalities

1991 Somalia Civil War Somalia 300.000-400.000

2003 Iraq War Iraq 1.455.590

2011 Yemen Uprising Yemen 1.782

2011 Syrian Uprising Syria 4.200

1969 Papua Conflict Indonesia 400.000

2004 South Thailand Insurgency

Thailand 4.100

2011 South Sudan Border Clashes

Sudan 125.600

and much more…

HUMAN CAPITAL

& AND NATURAL RESOURCE

Natural Resource has negative relationship with Human Capitaldevelopment

When natural resource is higher, cost of schooling comes higher and higher…

WHY???to create cheap labors used for resource exploration!!!

Civilians in resource-rich countries with less thana high school are still NUMBER ONE

unicef, 2010 South Asia

Latin AmericaEastern& Southern Africa

RICH BUT UNEDUCATED ?

free

TRADE&invest

MENT

opennessin trade in natural resource country with weak institution

may harm the economic growth

Grossman (2002)

Limiting education on the population to create cheap laborto attract international investors

MAP OF FREE TRADE

IN SUMMARY

We verify that

countries with firms that enjoy higher rents tend to have

higher corruption level, therefore, institutional quality can be a channel

through which resource abundance hurts economic growth

Kami memverifikasi bahwa

negara dengan perusahaan-perusahaan yang menikmatisewa yang lebih tinggi cenderung memiliki

tingkat korupsi yang lebih tinggi, oleh karena itu, kualitas kelembagaan mendapat aliran keuntungan

dari kelimpahan sumber daya menyakitkanpertumbuhan ekonomi

Natural Resource has negative effect on economic growth when there is no control for political stability, government effectiveness, regulatory quality, rule of law and democracy

Sumber Daya Alam memiliki efek negatifpada pertumbuhan ekonomi bila tidak ada kontrol untuk stabilitas politik, pemerintah efektivitas, kualitas peraturan,supremasi hukum dan demokrasi

rekomendasi

Kasus ‘Perilaku Pemerintah’ yang menyimpang

adalah sesuatu yang dinilai awet, maka giliran anda untuk menemukan ide agar suatu negara dapat bebas dari cengkraman ancaman

sumber daya alam dan pemerintah