Oil Price UP - Freedom Goes Down
Filed in archive Risk Management by Steve Rucinski on June 05, 2006

Here is an excerpt from a recent article he wrote:
What I would call "petro-ist" states - highly dependent on oil or gas for their G.D.P. and having either weak institutions or outright authoritarian systems - have started asserting themselves. And they are weakening, for now at least, the global democratization trend.
Economists have long taught us about the negative effects that an overabundance of natural resources can have on political and economic reform in any country: the "resource curse." But when it comes to oil, it seems that you can take this resource curse argument a step further: there appears to be a specific correlation between the price of oil and the pace of freedom.
I call it the "First Law of Petropolitics," and it posits the following: The price of oil and the pace of freedom always move in opposite directions in petro-ist states.
According to the First Law of Petropolitics, the higher the price of global crude oil, the more erosion we see in petro-ist nations in the right to free speech, a free press, free elections, freedom of assembly, government transparency, an independent judiciary and the rule of law, and in the freedom to form independent political parties and non-governmental organizations. Such erosion does not occur in healthy democracies with oil.
Read As Energy Prices Rise, It's All Downhill for Democracy
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