Reversing the curse:

introduction
Workshop
Dec. 7, 2016
UNU-MERIT, Maastricht,
the Netherlands

Natural Resources: no longer the curse?

Natural Resources was considered as the curse because:
Volatility in the price and demand creating unstable macroeconomy (Gylfason, 2012);
Appreciation of exchange rate that discourage the growth of other
sectors with export potential (Dutch disease) (Corden & Neary,
1982);
Over-reliance on commodities , inferior goods, contributes to long
term trade imbalances(Prebisch, 1950; Sachs & Warner,2001;
Singer, 1949);
No forward or back ward productive linkages that do not generate
effective employment and economic impact(Hirschman, 1958);
Generating little technological and scientific knowledge because
innovation is driven by the input suppliers (Pavitt, 1984);
Causing political conflicts and corruption that hampers stable
development (Auty, 1990, 1993).
2

Counter arguments to the curse:

Data/methodology
Historical evidence and cases (Nordic countries, Canada,
Australia)
Role of Knowledge/STI capability, Human capital
Mechanisms to counter-balance macro economic
volatility (i.e. Stabilization funds etc);
Technological change/ organizational
change/emergence of knowledge intensive service
sector
Linkages, cluster and global value chain
Local specificity of innovative solutions
3

In this workshop, propositions are:

Natural Resource based industry has potentials to increase
knowledge intensity and support economic diversification via:

Sustaining investment for transition towards knowledge economy;

Building technological capabilities based on NR activities;
Strengthen local linkages with Natural resource based activities;
Creating demand for local knowledge intensive activities.

How to strengthen and coordinate Knowledge, Policies,

Institutions and Programs to enable above?
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Speakers and Topics

Prof. David Kaplan, University of Cape Town

Prof. Carlo Pietrobelli, University of Rome
Tre, UNU-MERIT and Georgetown
University
Dr. Michiko Iizuka, UNU-MERIT
Mr. Fernando Vargas, UNU-MERIT