Friedman's Column Today on Oil

[Pangloss]

Thomas Friedman's column in today's New York Times is worth a read, and is refreshingly not about Terri Schiavo. (chuckle)

 

http://www.nytimes.com/2005/03/27/opinion/27friedman.html

Requires subscription, but I believe you can get login info from this URL without having to register:

http://www.bugmenot.com/

 

The most interesting bit:

 

By doing nothing to lower U.S. oil consumption, we are financing both sides in the war on terrorism and strengthening the worst governments in the world. That is, we are financing the U.S. military with our tax dollars and we are financing the jihadists - and the Saudi, Sudanese and Iranian mosques and charities that support them - through our gasoline purchases. The oil boom is also entrenching the autocrats in Russia and Venezuela, which is becoming Castro's Cuba with oil. By doing nothing to reduce U.S. oil consumption we are also setting up a global competition with China for energy resources, including right on our doorstep in Canada and Venezuela. Don't kid yourself: China's foreign policy today is very simple - holding on to Taiwan and looking for oil.

 

Well put. Lawmakers in this country are completely focused on divisiveness and distraction, because that's what the lobbyists want them to be focused on, and the voters simply don't care enough to knock them out of office when they vote that way.

[Aardvark]

Interesting article.

 

I think a historical analogy might be pertinent. The Spanish Empire declined at the same time as it was receiving floods of silver from its South American colonies.

 

Nations which depend for their wealth predominately on primary resource extraction become in effect 'windfall' societies. Wealth is not created by innovation or trade. Instead it is produced in a manner which is basically a zero sum game where the procedes are divided up amongst the strongest. The strongest group forces control of the natural assets. A political system of force and client groups develops rather than one based on law and property rights.

 

So, the Wests addicition to oil automatically results in the transfer of large funds to societies whose very basis is one of despotic cronyism. Not only that, but the West then finds itself in the position of having to prop up and support those sick societies to ensure the continous flow of that oil.

 

For a clear example of the corrupting effect of oil look at North Africa. Tunisia has no significant oil. As a response it is forced to work hard to develop. That has resulted in a relatively clean and incorrupt political system with respect for property rights and the rule of law. Libya and Algeria, Tunisias neighbours, have significant oil reserves. This has resulted in strife as internal conflict has taken place over the control of these resources.

 

Ironically, it can be clearly seen that the oil has been a curse to those nations whilst Tunisia is a happier more peaceful and prosperous country due to its lack of oil.

 

The sooner the West breaks it addiction to oil the better for all the people living in despotic oil producing states as well as for the West itself.

[TimeTraveler]

The sooner the West breaks it addiction to oil the better for all the people living in despotic oil producing states as well as for the West itself.

 

Well said!

[Phi for All]

This is a big part of what angers me about voters in this country. The majority rarely think beyond the next tankful in their SUVs. And they've forgotten their true power, their brain combined with their vote.

For a clear example of the corrupting effect of oil look at North Africa. Tunisia has no significant oil. As a response it is forced to work hard to develop. That has resulted in a relatively clean and incorrupt political system with respect for property rights and the rule of law. Libya and Algeria, Tunisias neighbours, have significant oil reserves. This has resulted in strife as internal conflict has taken place over the control of these resources.

Excellent example, Aardvark. Easy money always seems to corrupt the easiest. Hard work for what you get seems to keep the mind clearer, and makes for a more grateful person, or country it seems.

[Pangloss]

For a clear example of the corrupting effect of oil look at North Africa. Tunisia has no significant oil. As a response it is forced to work hard to develop. That has resulted in a relatively clean and incorrupt political system with respect for property rights and the rule of law. Libya and Algeria, Tunisias neighbours, have significant oil reserves. This has resulted in strife as internal conflict has taken place over the control of these resources.

 

Interesting points. Obviously not a 100% correlation (since many factors can cause despotism), but the relationship is quite clear. Well put.