Is Iraq's Oil Wealth A Curse?

Brig. Gen. John R. Allen, left, at a well atop a deposit of oil and natural gas in the desert of Iraq’s western Anbar Province, near Syria. Robert Nickelsberg/Getty Images, for The New York Times

The Oil Curse -- Newsweek

Iraqis may at last be on their way to the petro-prosperity they've waited so long to enjoy. They should be careful what they wish for.

Like one of those perverse twists in the tales of "The Arabian Nights" (many of which, you will recall, took place in Baghdad and Basra), modern Iraq's greatest source of prosperity—its vast reserves of oil and natural gas—could also be the biggest long-term threat to hopes for democracy.

Yes, on Sunday the Iraqis once again proved bravely, stubbornly, even astoundingly that they won't be kept away from the polls by mere car bombs and mortar shells. But by and large they were voting for the same coterie of politicians who've made Iraq among the five most corrupt nations in the world. The country's near-term future is just about waiting, after the election, for a new government to take shape over the next many weeks. But its long-term future could be haunted by what Stanford professor Larry Diamond calls "the oil curse."

Read more ....

My Comment: A couple of errors here .... for one .... not all countries that derive significant earnings from the export of oil are non-democratic. I live in the country with one of the largest deposits of oil in the world (all be it tar sands), and the last time I looked Canada was still a functioning democracy.

But Newsweek's points are valid .... countries that are rich in oil also happen to be rich in corruption, incompetence, and are basically non-democratic. Will Iraq go down this pathway .... probably. It's history and culture has been one that will not give someone like me any hope for the future. But if Iraq's oil wealth can ultimately give the country sectarian and political stability .... then I would say that they have been very lucky .... and that is the most that we can hope for.