Abstract:
This paper provides an overview of the relationships between natural resources, governance, and
economic performance. The relationships run in both directions, with re-sources potentially altering
the quality of governance, and governance being particularly important for resource poor countries.
Both these relationships have threshold effects; if governance quality is above a certain level, then
natural resources can lead to further improvement, while, below the threshold, further deterioration
may take place. Theoretical and empirical work is reviewed, the interactions between the relationships
discussed, and policy implications outlined.
