Transcription of Resource Dependence, Economic Performance, …
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Resource Dependence, Economic Performance, …
OF CONFLICT RESOLUTIOND unning / Resource dependence , Economic PERFORMANCER esource dependence , EconomicPerformance, and Political StabilityTHAD DUNNINGD epartment of Political ScienceUniversity of California, BerkeleyIn many Resource -dependent states, elites may face an important trade-off between the Economic bene-fits of diversification and the possibility for future political competition that diversification may , distinctive features of global Resource markets and national political economies may make diversi-fication more or less attractive to political elites. The author argues that in three cases which illustrate theequilibrium paths of the game-theoretic model developed here postindependence Bostwana, Mobutu sZaire, and Suharto s Indonesia three variables influenced elites incentives for diversification and therebyshaped outcomes along the dimensions of political stability and economicperformance: the world marketstructure for the Resource , the degree of societal opposition t
duction in the private sector. At the beginning of the game, however, the elite actors who control the state alone reap the benefits of resource exploitation.7 Total population is normalized to 1, with λ∈(0, 1) nonelite actors (who do not ini-
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