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Political Economy of Natural Resources




Admissions requirements

The prerequisites for this course are Statistics, Mathematical Modelling/Mathematical Reasoning, and Academic Writing (or equivalents of these courses). Basic understanding of economics and politics (as evidenced, for example, by completion of a 100-level course) is highly desirable for your successful progress in this class.


In this survey course, we will dissect one of the key puzzles in the development of countries increasingly recognized by academic and practitioner communities alike – paradoxically, countries that are endowed with abundant natural resources can be prone to having worse development records than those without such riches. We will look at this phenomenon, dubbed the “resource curse,” under a magnifying glass of various theories, evidence, etc.

Course objectives

We will strive to broaden our knowledge and hone our tools to dissect, understand, and debate key challenges to sustainable development arising from natural resource wealth. Successful completion of this course should enable you to:

  • understand and discuss key issues in the political economy of natural resource management;

  • critically apply existing theoretical frameworks to evaluate specific country experiences;

  • empirically identify existing or potential sources of challenges for specific resource-rich countries, their neighbors, partners and foes,

  • work toward developing tailored remedies for such challenges and present findings to stakeholders and informed non-specialists.


Once available, timetables will be published here.

Mode of instruction

We will meet for two 2-hour seminars each week, starting each class with a brief recap and following with a discussion of a specific topic based on assigned readings. Most of our discussions will take the form of a structured interaction, including case-based debates, role-plays and simulations, so as to channel our brainstorming and musing productively, efficiently and in a fun way. Collaborative “experiential learning” exercises should help us apply our theoretical knowledge, hone analytical skills in simulated real-life settings, perceive the “reality” from the perspective of actors whose behavior we want to understand, and foster productive team work. Two films and smaller multi-media material should help us connect the dots among various ideas and phenomena. Your preparation, research, contribution and reflection are essential for your success in this course, for the quality of our interaction and, ultimately, the learning of the whole group.


Assessment: Contribution to in-class discussions and exercises
Percentage: 15%
Deadline: Weeks 1-7

Assessment: A case study report
Percentage: 20%
Deadline: Week 3

Assessment: Group policy analysis/impact evaluation project
Percentage: 30%
Deadline: Week 6

Assessment: Final research essay
Percentage: 35%
Deadline: Week 8


There will be a Blackboard site available for this course. Students will be enrolled at least one week before the start of classes.

Reading list


  • Humphreys, Macartan, Jeffrey D. Sachs, and Joseph E. Stiglitz, eds. 2007. Escaping the Resource Curse. New York, NY: Columbia University Press.

Two other books are recommended, although not required:

  • Bain, Caroline. Guide to Commodities: Producers, Players and Prices, Markets, Consumers and Trends. Hoboken, NJ: Wiley.

  • Ross, Michael L. 2012. The Oil Curse: How Petroleum Wealth Shapes the Development of Nations. Princeton, NJ: Princeton University Press.


This course is open to LUC students and LUC exchange students. Registration is coordinated by the Education Coordinator. Interested non-LUC students should contact


Anar K. Ahmadov


Tentative weekly overview:
1.1 Charting the Territory
1.2 Mapping the “Resource Curse”
2.3 Effects: Economic Growth and Dutch Disease
2.4 Effects: State and Governance
3.5 Effects: Political Regime
3.6 Effects: Conflict
4.7 Effects: Human Development
4.8 Causes: Geography, Trade or Institutions?
5.9 Causes: Geography, Trade or Institutions?
5.10 Remedies: Macroeconomic Stabilization
6.11 Remedies: Economic Diversification
6.12 Remedies: Institutional Design and International Action
7.13 Remedies: Dealing with Companies
7.14 Group presentations
8 Reading week