The Myth of the Resource Curse: A Case Study for Algeria

2017. Journal of Private Enterprise, Vol. 32, No. 2, pp. 1-15

19 Pages Posted: 22 Jul 2015 Last revised: 15 Feb 2020

See all articles by Mohammed Akacem

Mohammed Akacem

Metropolitan State University of Denver - Department of Economics

Nicolas Cachanosky

Metropolitan State University of Denver; American Institute for Economic Research; UCEMA Friedman-Hayek Center for the Study of a Free Society

Date Written: May 15, 2016

Abstract

In October 1988, Algeria went through the autumn of its own discontent and yet more than two decades later, the country is still ruled by the "old guard", namely the veterans of the war of independence. This paper examines the reasons Algeria has resisted the winds of change blowing through the region with emphasis in the role of oil and democracy. Much of the scholarship that deals with the resource curse concludes that Oil is at the root of economic troubles and social unrest. This is not the case in Algeria, rather like many countries, its institutions are what greatly affect the economic and political ills of the country. The paper highlights the importance of institutions and presents empirical evidence to support the claim that contrary to Jeffrey Sachs they matter for everything.

Keywords: Algeria, resource curse, oil curse, institutions, democracy

JEL Classification: O13, O43, O47

Suggested Citation

Akacem, Mohammed and Cachanosky, Nicolas, The Myth of the Resource Curse: A Case Study for Algeria (May 15, 2016). 2017. Journal of Private Enterprise, Vol. 32, No. 2, pp. 1-15, Available at SSRN: https://ssrn.com/abstract=2633793 or http://dx.doi.org/10.2139/ssrn.2633793

Mohammed Akacem (Contact Author)

Metropolitan State University of Denver - Department of Economics ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

Nicolas Cachanosky

Metropolitan State University of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

HOME PAGE: http://www.ncachanosky.edu

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

UCEMA Friedman-Hayek Center for the Study of a Free Society ( email )

Buenos Aires
Argentina

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