Friday, November 9, 2007

Will Brazil Be Cursed By Oil?

Brazil has had a major oil strike off of its coast. The strike, in deep water, increases Brazil's proven reserves by 40%.

As we have seen, first in the Middle East and Africa, now in Venezuela, oil revenue tends to make a small number of people, rich, powerful, and ultimately tyrannical. Brazil is well on its way to being a first-tier, developed democracy. I wonder if oil revenue will change that.

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