Matthew Genasci and Sarah Pray argue that the best cure for the
"resource curse" in developing nations is increased transparency through
compliance with the Extractive Industries Transparency Initiative (EITI).
This argument is composed of two distinct claims. First, Genasci and Pray
claim that the root cause of the resource curse is the lack of government
accountability that results from reliance on resource rents rather than
popular taxation for most government revenue. Second, they contend that
increased transparency in the flow of funds to governments of resourcerich
developing nations from corporations involved in the extraction of
resources is the best way to increase government accountability.
While there is persuasive evidence that low government accountability
is at the heart of the resource curse, the link between this claim and
identifying transparency as the best solution is tenuous. Achieving
transparency may not cure the curse where civil society is not strong
enough to convert information into accountability. Since a relative lack of
taxation is behind the accountability deficit, a solution involving increased
taxation might be best. I propose such a solution: taxed distributions of
funds directly from extracting corporations to citizens of resource-cursed
"Matthew Genasci & Sarah Pray, Extracting Accountability: Implications of the Resource Curse for CSR Theory and Practice,"
Yale Human Rights and Development Law Journal: Vol. 11
, Article 5.
Available at: http://digitalcommons.law.yale.edu/yhrdlj/vol11/iss1/5