> In economics, the Dutch disease is a concept that purportedly explains the > apparent relationship between the increase in exploitation of natural > resources and a decline in the manufacturing sector. The theory is that an > increase in revenues from natural resources (or inflows of foreign aid) will > deindustrialize a nation’s economy by raising the exchange rate, which makes > the manufacturing sector less competitive and public services entangled with > business interests. ... While it most often refers to natural resource > discovery, it can also refer to "any development that results in a large > inflow of foreign currency, including a sharp surge in natural resource > prices, foreign assistance, and foreign direct investment".
>The term was coined in 1977 by The Economist to describe the decline of the >manufacturing sector in the Netherlands after the discovery of a large natural >gas field in 1959 ...< at the first ellipsis: > However, it is extremely difficult to definitively conclude that natural resource exploitation is the primary or sole cause of decreasing revenues in the manufacturing sector, since there are often many other factors at play in the very complex global economy.< (from the Wikipedia) In popular discussion, this Dutch Disease is often associated with another disease (corruption). On Mon, Jun 14, 2010 at 9:35 AM, Carrol Cox <[email protected]> wrote: > What is the "Dutch Disease"? > > Carrol > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Jim Devine "Those who take the most from the table Teach contentment. Those for whom the taxes are destined Demand sacrifice. Those who eat their fill speak to the hungry of wonderful times to come. Those who lead the country into the abyss Call ruling too difficult For ordinary folk." – Bertolt Brecht. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
