The resource curse - resource nationalism nexus: implications for foreign markets
The resource curse - resource nationalism nexus: implications for foreign markets

Summary/Abstract: This article considers the problem of resource nationalism and issues of energy safety; analyzes the problems of energy safety ofthe countries–energy importers; generalizes practical experience of countries–energy importers; shows that economically great inflowof capital from the development of energy sector leads to many negative economic effects, caused by the development of naturalresources, because money of the countries rich in natural resources devaluates after the export of oil and gas due to increase ofexchange rate. Produced goods become expensive on both internal and external markets and import becomes relatively cheaper.This situation negatively influences the trade balance of the country.Aim of this article is to substantiate risks of the resource nationalism and the necessity of creating energy safety system.The article shows that the countries rich in oil and gas have the high level of political repressions, corruption and authoritarianismand very low level of democratic pluralism; it is proved that resource nationalism threatens the energy safety at the expense ofreducing effectiveness and decreasing investment possibilities.Article may become the basis for developing EU strategy of energy safety.

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