Chart by Bloomberg View
Chart by Bloomberg View
<html> <head><style type ="text/css">body { font-family: "Bloomberg Prop Unicode I", Verdana, sans-serif; font-size:125%; letter-spacing: -0.3pt; color: #FF9F0F; background-color: #000000; text-align: left; } p {line-height: 1.25em; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" );} h1, h2, h3 { text-align: left; font-weight: normal; color: #FFFFFF; } h1 { font-size: 130%; } h2 { font-size: 115%; } h3 { font-size: 100%; } #bb-style { font-size: 90%; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" ); } b, strong { font-weight: bold; } i, em { color: #FEC54A; } pre { font-family: "Andale Mono", "Monaco", "Lucida Console"; letter-spacing: -0.3pt; line-height: 1.25em; } table { border: 0; font-size: 90%; width: 100%; margin-left: auto; margin-right: auto; } td, tr { text-align: left; } td.numeric { text-align: right; } a:link { color:#53B2F5; text-decoration: none; } a:visited {color:#53B2F5} a:active {color:#53B2F5} a:hover {color:#53B2F5} </style> </head> <body> <p>By Katherine Brown and Ilan Kolet</p><p>Most of the world's oil is produced in states that are undemocratic. The U.S., Canada and Norway are the exceptions (see chart).</p>&#xD; &#xD; <p>So does oil inhibit democracy? This is perhaps the central question of our discussion this week about the historical lessons the Arab Spring nations should pay attention to.</p>&#xD; &#xD; <p>Michael L. Ross, a professor of political science at the University of California, Los Angeles, has been researching this issue for a decade. In a 2001 paper, and in updated research in 2009, <a href="http://www.sscnet.ucla.edu/polisci/faculty/ross/Oil%20and%20Democracy%20Revisited.pdf">Ross argues </a>that oil wealth deeply impedes democratic transitions from authoritarian states.</p>&#xD; &#xD; <p>He also found that the undemocratic effects of oil vary by region and have fluctuated between 1960 and 2002. The one causal mechanism for the "oil-autocracy link," Ross wrote in 2009, was the "rentier effect," in which oil states use low taxes and high spending to quell democratic pressures.</p>&#xD; &#xD; <p>To reverse these undemocratic effects,&#xA0;oil states need revenue transparency and institutions accountable to the public -- as <a href="http://www.bloomberg.com/news/2011-05-24/arab-democracy-needs-more-than-markets.html">we discussed</a> May 23.</p>&#xD; &#xD; <p>(Katherine Brown is a researcher at Bloomberg View. The opinions expressed are her own. Ilan Kolet, who created this graphic, is a data editor at Bloomberg News. For more posts at the Echoes blog, visit bloomberg.com/view/echoes.)</p>&#xD; &#xD; <p>To contact the editor responsible for this blog post: Timothy Lavin at <a href="mailto:tlavin1@bloomberg.net">tlavin1@bloomberg.net</a>.</p> </body> </html>