Sweeping away the moribund
Tyranny, in addition to suppressing people’s freedoms, also holds back long-term economic growth and development. When tyrants are overthrown and replaced by something better, an opportunity presents itself for the unleashing of people’s creativity and for the rapid development and exploitation of natural resources as a way of improving living conditions and opening up new opportunities. We see this today, most notably, in Iraq and in Nepal.
In Iraq, the former fascistic regime engaged in devastating military adventures and a nepotistic and bureaucratic centralized control over economic life that held back production. During the decades of Ba’ath dictatorship only 17 oil fields were developed out of a potential 80 fields. Oil production, Iraq’s principal source of revenue, reached at its peak only 3.5 million bpd (barrels per day).
In Nepal, the feudal monarchical system did nothing to develop and exploit nature for the benefit of the people, yet Nepal has incredible hydro-power potential. It could provide cheap and reliable energy from this source for its own people as well as earn vast revenue through the export of power. Nepal’s hydropower potential has been estimated at 84,000 megawatts (84,000 million watts), yet only a tiny fraction has been tapped.
The overthrow of tyranny in both countries, and its replacement with constitutional democracy, is an example of how old realities give rise to new ones, when the old becomes unnecessary and irrational. Continue reading ‘Iraq and oil — the good oil’
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