Norway discovered oil about 10 years after the Dutch discovered their gas. So the Dutch Disease was very much in the forefront of the mind of the Norwegian politicians when they found oil. This is very much of the reason why Norway decided NOT to spend all of the money from the oil, but rather to put the money in an investment fund. And now, Norway (and theoretically, Norwegians) own one of the biggest investment funds in the world, with assets worth about $250,000 per capita.
Norway has also invested in massive infrastructure projects meant to benefit the country after oil production declines. In particular, it’s investing billions of dollars in roads, bridges, and tunnels designed to make the fjords easier to navigate. Norway also has an excellent digital infrastructure, and continues to invest in technological improvements. And Norway has universal free health care and free education, including free universities.
I don't know what they focused on in your Business classes. But I would say that the Dutch Disease is more a concern for governments than for businesses. So that might have been a reason.
@@MartijnPennings I've heard about American disease which is when united states just sanction a 3rd world country whenever they nationalize their natural resources by labelling them "undemocratic"
Issue is Nigeria started developing their oil infrastructure too late. Oil demand can only go down moving forward. All more capacity does now is drive down prices.
@@penguin12902 there also has to be a balance. Someone perfectly healthy would be pissed if 30% THEIR salary got taxed for medical care. Someone with zero kids would be pissed if 30% of their salary went to public schools. I guess human capital is important, but financial capital needs to be able to keep up with it. Like with drilling oil or creating a strong economy. Maybe by having both of those things at the same time, you can succeed. Idk
Look at what Botswana did when they found diamonds and copy them. They were one of the poorest countries in the world, and instead of killing themselves over them, they turned their country into one of the richest in Africa.
Botswana’s still not “rich” but they have achieved the highest standard of living on continental sub saharan Africa. They’re roughly on par with China or Mexico.
*Cough* Libya pre Gaddafis murd... had and was the most stable, natural resource producing country in the African continent. With Gold reserves (that mysteriously vanished when they were invaded by the liberators), and sent back to the stone age.
@@kristopherford5209 Libya was never invaded, there were no liberators, Gaddafi was kicked out of the Arab league for being ab genocidal megalomaniac, and he was killed by his own people for trying to slaughter them. Stop fetishizing insane dictators. Be like Botswana, build a sustainable system that grows wealth based on democracy, tolerance, freedom, and trade, not one that instantly collapses when an eccentric leader dies.
I was watching a documentary about a ghost town in Namibia. The place was rich in its heyday. 40% of the world's diamonds came from there. In just 40 years, it went from a desert to a luxury town with everything you'd need and back to a desert. Empty mansions full of sand. My first thought while watching it was, "This is going to be the 🇦🇪 or 🇸🇦 one day."
@@lmvr127Yes, the US talks a lot about democracy but they literally support a feudal monarchy because the king allows US companies to manage its oil. At the same time look how they sanctioned Venezuela and barred them from international trade after Venezuela threw out those same American companies and nationalised their oil. Yes, Maduro is a dictator but the US state department is responsible for more suffering, starvation and collapse in the world than any other power in history.
No, these poor countries did not allow western companies to exploit them. The western governments would then work on destabilizing these countries until they were in such chaos that western companies could swoop in and take the oil for a low price
Inflation is solely caused by government. It is government that prints money. Increasing the money supply is what causes Inflation. Government increases the money supply to pay for their spending
@@Tigerfire75 do you come from the interwar era or you dont know many european country had in the past and have now an independent central bank? Regular bank lend money to people and the central bank lend to the banks but with interest to discourage an infinite money glitch
@marcoaorelio6409 the central bank is a creation and part of the government. They pri t the money. Also they have the policy of fractional reserve banking. Which causes more money to be lent out then they have the reserves to cover. European governments to pay for the socialist states that they are continuing to go towards just print more money when the money they steal from their citizens isn't enough.
Venezuela didn't become poor because of oil. It became poor because of mismanagement and years of political corruption. There was a time in which Venezuela was the richest in south America.
That's they're point buddy. These guys don't believe there's literally a curse on oil, its poor countries that don't how to handle a huge influx of resources and wealth.
@@jamesbanda7069 are you a clown? the sanctions weren't made until too recently and by then it already had a lot of mismanagement (the government completely taking over the economy)
@@chandler9688newsflash, Venezuela oil Co was already owned by the government the problem wasn't that they nationalized the oil Co. But it was that the government nationalized everything else. And started to run their economy like it's 1940's wartorn Britain.
@@tictock3442No it didn’t - the British government of the time used North Sea Oil money to effectively create the City of London as we know it, ushering in the economic boom of the 80s.
Or..... just hear me out! What if a handful of brutal thieves grab hold of power and steal all the wealth for themselves and a few of their best buddies?!
That is totally undemocratic and if you will keep such fascist and authoritarian policies going, our hands will be forced to intervene 😂 State Department
No... the US energy sector is relatively small compared to GDP, so there is no "dutch disease" per se. The US just has an incredibly powerful, well financed, well regulated (despite GOP whining) economy. The "oil" is just people getting rich off the system that manage to convince poor people to keep giving them tax cuts, which necessitate under-spending in education and healthcare. I understand US healthcare is 18% of gdp... but the amount actually spent on healthcare instead of insurance/middle-men/benefit-managers is 9%, which is underspending relative to OECD avg, and famously doesn't even cover everybody.
This applies to all natural resource economies. Look at Australia: The mining boom made manufacturing here uncompetitive so we pumped it into a real estate bubble.
Dutch disease isnt real and being so rich you have to worry about your own property being too valuable isnt a disease. Dutch disease is propaganda to support investing surplus capital into the United States. Hey, maybe if you lose everything and have to work 14 hours a day for a bowl of rice and your houses sell for a goat, then you will be le competitive manufacture.
The people are always the greatest resource that any nation will ever have. They are the tree from which every ounce of greatness springs forth. THE PEOPLE ARE EVERYTHING.
Lol, I love history, and if at some point a nations' people get too rich the extra rich just start importing slaves. And you know, the Jones's are making hella profit off of it and if you want to compete with them at all next election you'll need to do it too, and so it spirals. Ah man, kinda like the immigrants they're bussing in right now
Ethiopia had plenty of people during the famine years and nothing else. So, Yeah! 😅
2 หลายเดือนก่อน +1
This is complete nonsense. Saudi Arabia is rich becuase of its oil, not its people. Without its oil, it would be poor. Without its people, some foreign country would be producing the oil.
Based on your argument, could you say that Dubai is one of the most democratic nations in the world? I don't believe it's about freedom, it's about wise management.
no there not free.. but big contries like usa france england dont impose crazy tariffs or embargos for it. like venezuela or other poor countries@Tylory2
It makes poor countries poorer because they see it as an opportunity to start a national company and they are not prepared for the oil industries savage tactics. They’re incentivized to sell off their land rights instead of develop it themselves and that is obviously a very slippery path, then that oil money becomes the main source of income (think Venezuela and Argentina here) for the government and suddenly the incentive isn’t to help grow your country’s people but to grow this one sector which becomes the only sector
@@79Ambu Nope. These were countries that didn't have the money or knowledge or infrastructure to set up refineries, or even the oil derricks or platforms themselves. So they had to bring in outside companies and experts, and that opened a whole can of very dirty worms, like having to sell the oil as crude or outright selling the rights to the oil exploitation. The other option was to leave the oil in the ground, there was no viable long-term solution that didn't involve aggressive outsiders. Happened all over the planet, and not just with oil but also with metals and diamonds and anything that needs a developed economy to even start exploiting it.
*it makes socialist countries poorer usually due to corruption while capitalist countries usually see a massive influx of machinery and the associated skilled labor.
@@masoncomes6783 Nope again, this has nothing to do with socialist or capitalist, it just has to do with the development level of the nation. Norway and the Netherlands for example were and are quite socialist, but didn't have any problems when they found oil and gas, because they already were developed nations. And corruption levels have nothing to do with socialism or capitalism, both economic systems have examples of highly corrupt nations or almost corruption-free nations. Usually the more developed they are, the less corruption there is. www.nature.com/articles/s41599-023-01930-5.pdf
Plain misinformation. Saudia was very poor. It was the building of infrastructure by USA (pioneers of oil industry) that made it very rich. Even though oil was discovered about 20 years before Saudi Arabia, Venezuela's corruption and instability didn't help then they got aligned with the communist bloc so USA was, well blocked by that.
True, butt I gotta agree with someone what on this, they are the exception, not the rule. Purely due to the ocean of oil under them, it was easier to strike deals with their elites than to try to swindle all that
Jesus christ how are this many people struggling to grasp this video? Nothing you said refutes anything they said. They never said oil has never made a country wealthier, they're just pointing out that many countries do not know how to manage a huge influx of money and resources and end up in a worse position then when they started because of mismanagement. While on the other hand a country that has become accustomed to handling excess typically makes more effective use of said money and resources.
@@swegatron2859 The fact that they are lottery players is evidence that they are not sensible. Well, that's not entirely true. Some people play the lottery for fun. But I have too many friends who base their future plans on winning the lottery.
Because Western societies rarely ever portray such things, because if nobody knows, we won't recognise it still happens today. The banana republic concept.
@@elkinmontoya9640 Yeah, but it's two separate cases, Tulips were the first famous "bubble" like crypto is now, and Dutch disease is specifically about oil and can be used for other fuel-based economies (i.e. natural gas).
It may be clearer to say Rich People become richer and Poor People become poorer, dependant on the ethics of the Governmental/Ruling wheelers and dealers 🤷♀️
Yeah because the United States didn't literally collapse the democratic governments of tens of countries while conducting illegal wars all over the middle East. Let us also forget that the middle East was under colonization of the British and the French until much after the second world war. Let us forget all history and reason, and focus on simplistic aphorisms like we are mewling children who do not know a fig from an oil tanker.
Venezuela was actually pretty rich and a lot of Venezuelans boasted a slightly more lavish and posh life compared to the rest of Latin America, that was until Hugo Chavez came into power. My Spanish teacher (I took the class for easy credits) who was Venezuelan, recalls voicing her fears of Hugo Chavez doing the same thing Fidel Castro did with Cuba, luckily she left in time, and was easily able to enter the US since her mother emigrated from the US, that doesn't mean her life in the US was easy when she first came here
It wasnt until Hugo Chaves came to power. That was in 1998, the crisis in Venezuela started in the year 2013. Who gives a *k about your teacher and his alleged fears. The reality is that venezuelan GDP grew non stop since 1922 until the year that Hugo Chavez died. It peaked at around 400 billion dollars, it was 90 billion dollars in 1998. Hugo Chavez oversaw a 300% growth of the venezuelan economy, over 15 years. It wasnt like he did anything special, as the venezuelan economy had been growing non-stop since 1922
Hugo Chavez saved Venezuela, it had been forced by foreign nations (mainly america) to become solely focused on exporting oil to richer countries. Chavez gave venezuela its independence back
@@williampena197 The venezuelan economy tripled in size during the reign of Hugo Chavez. Things started to go bad around the time of his death, then extremely bad extremely fast, with a 90% loss of GDP within 2 years. He was dead by then.
The oil curse is very much a problem in Norway as well. Human capital is found in community, and Norway is just falling apart socially. Families are being systemically destroyed, no one cares about their own family even because they leave it all to the welfare state, politicians and people are all corrupt. It would have been better if the oil had never been discovered.
it's the welfare state that destroy the family unit. Not the oil profits. Thomas Sowell explains this very well in his book ''basic economics''. The only place that had a solution found, was the ancient and rich city state ''Sparta'' in the time of Alexander the Great. Sparta was ruled by the eldary woman, which ended up alone, old and healthy. Men had the duty to protect Sparta and died on average 20 year younger. Mothers sended their sons in military draft at the age of 6 years and the men finished the most brutal military training at the age of 18 and became soldier of Sparta till he died. As reward for the duty that was asked of men, all men was given land, farm and 30 Slaves at 18 when he finished the military end exams. This was also the first time woman were introduced to the man and the ladies could divide the man under the woman. They would marry one after the official exams and built the family and took care of her husband. Because the man had all the welt, woman were very motivated to marry, build family and took good care of her husband and children. The elderly woman who ruled Sparta knew that there daughters couldn't inherited any welt because woman would stop building strong families, which was untolarable because Sparta needed a lot of men in defending and to protect the city. Greek was organized in autonome, and free city-states. Cities had walls and protection was the responsibility of the citizens of that city.
@@itsdenadathe problem was they didn't exactly have much available goods to sell without spending money on machinery; money they didn't have to even get an industry started. Once you get machinery and skilled labor into the country it exponentially opens up opportunities in other fields.
@@itsdenadaMy grandfather talks about them living but in harsh nomadic conditions even when Saudi Arabia first became in the 3rd phase and tribal wars were fading away uniting under one rule, he saw the strong change and told me he’s afraid that is the young generation that only saw the result would not appreciate the change and be ignorant spoiled brats, which is sadly becoming the truth in nowadays generation.
@@itsdenadaplus the “mandatory” tourism doesn’t really have an income the government pays way more than the income in Pilgrimage. The services are really high and they do a lot to run the pilgrimage smoothly without any issues
Human capital appreciates while industrial capital depreciates. Human capital tends to have a increase in returns with training, experience ext. While capital like cars, machinery tends to break down making it less valuable over time (depreciation). Once again this is a blanket statement and not always absolute.
Oil makes poor countries poorer because they are politically dysfunctional (also the cause of their poverty in the first place). People fighting over a windfall are not in a position to take advice.
There is a LOT of oil in a country in South America called Suriname, but it is a really poor country. America and other countries are looking into how they can get their hands on it.
Somalia is probably the most clannish country in the entire world. Chances are very great that one clan will take control of all of that sweet oil money, and make that clan very wealthy. Then again, one of the recent prime ministers in Somalia lived in Norway and got his education there. And he has been working in oil companies. So he might have an understanding about the issue, and a different attitude to most Somalis. So I guess there is some hope.
Saudi Sarabia makes the most money from oil because it costs only 10 dollars per barrel to extract whereas Venezuela is full of mountains so it costs over 50 dollars a barrel in some cases.
A couple of quick google searches revealed the following info: "Saudi Arabia has a superpower. Not only is it the largest exporter of crude oil in the world; its production costs for oil projects are also the lowest in the world, at around just $10 per barrel." "Production costs in Venezuela average between $10 and $12 per barrel" "Oil production costs vary by geologic formation. In 2014, these costs ranged from an average of $7 a barrel for the Ghawar field in Saudi Arabia, to $21 a barrel in the offshore Norwegian fields, to $51 a barrel in the Bakken shale in the United States." So I don't think your argument is a very good one.
The same things happen to lottery winners here in the USA. Poor people don’t understand that you must pay a lot of taxes. They have relatives that suddenly appear out of the woodwork. They invest in idiotic get rich schemes. Although some are smart and hire financial advisors. On man turned himself into a corporation and made his children board members. So the corporation bought the homes and cars for the children. Each board member received a salary with benefits.
Erm aren’t big corporations that quite literally exploit cheap labour and children are also to do with making “rich countries riche and poor countries poorer” In fact, corporations have a much bigger impact than oil. This is literally gaslighting at its finest
Not even remotely. They just have such a huge quantity at such a high quality that they simply cannot spend as much as they're making. Additionally, most of the money just stays within the royal family so the inflationary effects haven't spread out to wider society in the way it did in Venezuela.
You got to be kidding me all this Arab country they will not reach before oil matter of fact they were so poor in the other hand Venezuela was rich country but they get that section don't twist history
Not anymore , after the shale revolution the USA exporting oil to other country, now they just needed to convert all their oil refineries to run on shale oil instead of the gulf oil. The usa did once when Venezuela when crazy and nationalize their oil industry they going have to do it again cause stay in the middle east is a loss cause for them.
Every country has got energy under under their soil and in the sea. The earth is one planet. The dilemma we face is the cost of extracting it, through a processes of industrialisation. The problem the earth faces is not lack of oil, but lack of drinking water. What sustains life is water not oil.
I possess a gymnasium diploma in The Netherlands. Never heard of this. We were also "taught" that the VOC voyages was for us to enjoy black pepper on our morning eggs 😂😂😂
The simple answer is FINANCES. If the government doesn't know how to handle the finances of their country then they're prone to debt traps and low investments. Smart and strategic people are heavily needed in these times.
It doesn’t do that automatically. It’s the appropriate or inappropriate allocation of funds. It’s like when a poor person wins the Lottery and ends up bankrupt 3 years later. They simply didn’t understand money to begin with. Rich people who earned their wealth know how to manage money
Education? Health? Human capitol? I never heard of any of these ideas before… here in America we are trying together be the most powerful third world that has ever existed
Saudi Arabia was not rich before oil, in fact it was very poor. Venezuela also grew hugely wealthy because of oil, it was an amazing place to live before oil prices crashed sending the economy into a spiral.
In the uk it wrecked the economy. Most industry closed down. Most of the revenue went on paying unemployment benefit. No investment. What a waste. Good analysis.
The most valuable asset a country has is its people . Investment in their well being will be the best investment for a continued return generation after generation .
Norway discovered oil about 10 years after the Dutch discovered their gas. So the Dutch Disease was very much in the forefront of the mind of the Norwegian politicians when they found oil.
This is very much of the reason why Norway decided NOT to spend all of the money from the oil, but rather to put the money in an investment fund.
And now, Norway (and theoretically, Norwegians) own one of the biggest investment funds in the world, with assets worth about $250,000 per capita.
Try buying a pint in norway….
@@nobilismaximus We even have enough money to afford THAT.
Now, buying TWO pints might be stretching the finances, though.
Brilliant
Meanwhile America has more than that in debt per capita.
Norway has also invested in massive infrastructure projects meant to benefit the country after oil production declines. In particular, it’s investing billions of dollars in roads, bridges, and tunnels designed to make the fjords easier to navigate. Norway also has an excellent digital infrastructure, and continues to invest in technological improvements. And Norway has universal free health care and free education, including free universities.
Top 3 Worlds Largest Oil Reserves:
1st - P. Diddy
2nd - Venezuela
3rd - Saudi Arabia
🤣🤣🤣
Lmaooooo
Nahhh dis one actually original for once 😂😂😂😂
Best 2024 comment
Recently the USA invaded Diddy after discovering oil 😂
dutch disease was NOT taught in my Business Classes. So thank you for teaching me something New in business.
I don't know what they focused on in your Business classes. But I would say that the Dutch Disease is more a concern for governments than for businesses. So that might have been a reason.
What they don't teach it's the US sanctions on countries that nationalize their oil and minerals reserves
Dutch disease is socialism. The reason you weren't taught it is because your professor is probably a leftist.
I'm Dutch and I had never heard of Dutch disease
@@MartijnPennings I've heard about American disease which is when united states just sanction a 3rd world country whenever they nationalize their natural resources by labelling them "undemocratic"
Actually, the leaders of those poor countries get quite wealthy.
This. The video barely tells one side of the story correctly, let alone neglecting Theo whole context with all the facts
Yes. But the country remains poor. There’s a difference.
@@roastedpepperthe oil has nothing to do with how poor the country is.
@jamieohare2428 it does not change the fact that an economy based solely on oil is doomed in the long run
@@jamieohare2428yeah ,who cares about the side of 99.5% of people?
Nigeria needs to hear this message.
They know it , they are just corrupt
Issue is Nigeria started developing their oil infrastructure too late. Oil demand can only go down moving forward. All more capacity does now is drive down prices.
Era is far gone.
The HOS then “we had too much
Money”
You get more royalties than Australia
Was just thinking this😂
The last sentence says it all, turn financial capital into human capital. Human capital is the number 1 way of eliminating poverty
But but but, the Republicans tell me that's socialism!! You can't just take money from rich people! Communist!
And the US currently has at least one party whose platform is to do exactly the opposite...
@@penguin12902 The other party is currently importing millions of people with no human capital
@@penguin12902 there also has to be a balance.
Someone perfectly healthy would be pissed if 30% THEIR salary got taxed for medical care. Someone with zero kids would be pissed if 30% of their salary went to public schools.
I guess human capital is important, but financial capital needs to be able to keep up with it. Like with drilling oil or creating a strong economy. Maybe by having both of those things at the same time, you can succeed. Idk
Oh? Did you eat today?
Guess who farmed it.
Look at what Botswana did when they found diamonds and copy them. They were one of the poorest countries in the world, and instead of killing themselves over them, they turned their country into one of the richest in Africa.
Cap
Botswana’s still not “rich” but they have achieved the highest standard of living on continental sub saharan Africa. They’re roughly on par with China or Mexico.
*Cough* Libya pre Gaddafis murd... had and was the most stable, natural resource producing country in the African continent. With Gold reserves (that mysteriously vanished when they were invaded by the liberators), and sent back to the stone age.
@@lovepeoplehu9883No one says this word anymore.
It came and went with the clowns who brought it to fruition.
@@kristopherford5209 Libya was never invaded, there were no liberators, Gaddafi was kicked out of the Arab league for being ab genocidal megalomaniac, and he was killed by his own people for trying to slaughter them.
Stop fetishizing insane dictators. Be like Botswana, build a sustainable system that grows wealth based on democracy, tolerance, freedom, and trade, not one that instantly collapses when an eccentric leader dies.
Saudi Arabia was NOT rich before discovering oil, they became rich after.
And Venezuela tried to invest in its people too.
So? We still got lots of money, cope.
@@ChaklitTeaand Ben Sylman is investing them well in destroying Islam. Of course he will never succeed
And Venezuela was wealthy. Socialism killed it.
@@neuffatator socialism ? 😂 maduro is no socialist. he's a narcist dictator (like a lot of leaders nowadays)
I was watching a documentary about a ghost town in Namibia.
The place was rich in its heyday. 40% of the world's diamonds came from there.
In just 40 years, it went from a desert to a luxury town with everything you'd need and back to a desert. Empty mansions full of sand.
My first thought while watching it was, "This is going to be the 🇦🇪 or 🇸🇦 one day."
It's gonna be United Arab Emigrates once the oil is depleted
Saudi Arabia is impossible... because it has 2 holy cities that have been visited for thousands of years....UAE is possible
Don’t get bombed by the us, be careful with “foreign investors”. There’s a lot more at stake to consider than just investing in education
nigca the oil war was us doing a service for the Saudis. For better oil prices n a few free Barrels as well
@@KingSlat730no it’s cuz Israel our daddy be fr
Funny cuz few invest in education.
@QuattroBajeena-c8rthe Saudis and Gulf states did benefit massively from the Iraq war
@@lmvr127Yes, the US talks a lot about democracy but they literally support a feudal monarchy because the king allows US companies to manage its oil.
At the same time look how they sanctioned Venezuela and barred them from international trade after Venezuela threw out those same American companies and nationalised their oil.
Yes, Maduro is a dictator but the US state department is responsible for more suffering, starvation and collapse in the world than any other power in history.
It's not oil that makes poor countries poorer, but human stupidity and bad decisions.
Nah bro, have a look into CIA coups, it might explain to you some stuff. It's colonization/US hegemony that's causing poor countries
Yea, the rich Arab nations were not exactly shining stars of wealth when they first started exploiting their oil resources.
@@DagothUr3672Exploiting seems bad which they might they done maybe in some cases.
@@DagothUr3672it was America that exploited it for them in the first place. The arabs had never seen a machine before Standard Oil turned up
No, these poor countries did not allow western companies to exploit them. The western governments would then work on destabilizing these countries until they were in such chaos that western companies could swoop in and take the oil for a low price
Inflation is solely caused by government. It is government that prints money. Increasing the money supply is what causes Inflation. Government increases the money supply to pay for their spending
It is true if you live in argentina not in Europe
@marcoaorelio6409 government in Europe isn't the ones who print the money? Are you telling me that regular citizens do that?
@@Tigerfire75 do you come from the interwar era or you dont know many european country had in the past and have now an independent central bank?
Regular bank lend money to people and the central bank lend to the banks but with interest to discourage an infinite money glitch
@marcoaorelio6409 the central bank is a creation and part of the government. They pri t the money. Also they have the policy of fractional reserve banking. Which causes more money to be lent out then they have the reserves to cover. European governments to pay for the socialist states that they are continuing to go towards just print more money when the money they steal from their citizens isn't enough.
And the governments do it on purpose.
Its never just about the resource, its about managing it
Exactly... cool pfp.
Exactly, managing to not be invaded by US or be sanctioned due to sudden label as an international threat to security.
@JoseFanon Stronger countries do that to weaker countries? Wait really?
@@Kkk-cc1iy Imperialist stronger countries do that to weaker countries
@@JoseFanondamn you telling me that stronger countries make weaker countries act with their influence of power? I’m shocked
Listening to this while looking at our current education and medical systems.
Saudi Arabia is a beautiful country Alhamdulila 😊😊😊😊😊😊
ISLAM LITERALLY STOLE CHRISTIANITY!!!
Christianity developed during the 1st century AD
Islam began in 610 CE
Shut up, cancer 🤡🤡🤡
Venezuela didn't become poor because of oil. It became poor because of mismanagement and years of political corruption. There was a time in which Venezuela was the richest in south America.
That's they're point buddy. These guys don't believe there's literally a curse on oil, its poor countries that don't how to handle a huge influx of resources and wealth.
No, Venezuela is poor because of Americn sanctions, who are you? An American?
@@jamesbanda7069 are you a clown? the sanctions weren't made until too recently and by then it already had a lot of mismanagement (the government completely taking over the economy)
@@tylergaye5457"makes poor countries poorer" does not apply to Venezuela. Venezuela was RICH and flourishing.
That’s an over simplification of what happened AND ignores America’s role
Loads of poor countries became rich with oil. Saudi Arabia, Brunei, UAE, Qatar…
Venezuela until it was nationalized
@@chandler9688newsflash, Venezuela oil Co was already owned by the government the problem wasn't that they nationalized the oil Co. But it was that the government nationalized everything else. And started to run their economy like it's 1940's wartorn Britain.
Scotland discovered oil and became poorer.
@@tictock3442No it didn’t - the British government of the time used North Sea Oil money to effectively create the City of London as we know it, ushering in the economic boom of the 80s.
Until the US put sanctions on them, FTFY @chandler9688
By how the video started, I was actually surprised to see him give an intelligent answer.
Transform financial capital into human capital -- The need of the hour
💯🎯👍🏿
Needs 500 million likes.
SO plain n simple@@@@!!
Or..... just hear me out! What if a handful of brutal thieves grab hold of power and steal all the wealth for themselves and a few of their best buddies?!
@@DanaPohlson There are endless possibilities for humankind.
@@ariyantmishra1903then why does what he said keep happening if there are so many other options? Human nature, that's why.
Another tricky thing if a poor country finds oil is to prevent the American military from knocking on your door
You must be one of America’s many vassals. I can see why you’re so bitter 😂
hurrdurr you're so clever
or your backdoor or side window!!!
That is totally undemocratic and if you will keep such fascist and authoritarian policies going, our hands will be forced to intervene 😂 State Department
You mean City of London?
Maybe the US should take notes. Because little goes towards healthcare and the public education system is eroding
There's a reason for that I'm convinced it's pretty sad and intentional IMO
No... the US energy sector is relatively small compared to GDP, so there is no "dutch disease" per se. The US just has an incredibly powerful, well financed, well regulated (despite GOP whining) economy. The "oil" is just people getting rich off the system that manage to convince poor people to keep giving them tax cuts, which necessitate under-spending in education and healthcare.
I understand US healthcare is 18% of gdp... but the amount actually spent on healthcare instead of insurance/middle-men/benefit-managers is 9%, which is underspending relative to OECD avg, and famously doesn't even cover everybody.
This applies to all natural resource economies. Look at Australia: The mining boom made manufacturing here uncompetitive so we pumped it into a real estate bubble.
Dutch disease isnt real and being so rich you have to worry about your own property being too valuable isnt a disease. Dutch disease is propaganda to support investing surplus capital into the United States.
Hey, maybe if you lose everything and have to work 14 hours a day for a bowl of rice and your houses sell for a goat, then you will be le competitive manufacture.
Guyana is a prime example of this. The people will stay relatively poor but those in charge doing the handshakes under the table are thriving.
Thank you, if i ever find myself owning a country that discovers oil, i will make sure to follow these steps
Let's hope Guyana is listening
🇬🇾
They probably arent
@@nemanjap8768 sad but true
We are but the installed government isn't😔
The people are always the greatest resource that any nation will ever have. They are the tree from which every ounce of greatness springs forth. THE PEOPLE ARE EVERYTHING.
Lol, I love history, and if at some point a nations' people get too rich the extra rich just start importing slaves. And you know, the Jones's are making hella profit off of it and if you want to compete with them at all next election you'll need to do it too, and so it spirals.
Ah man, kinda like the immigrants they're bussing in right now
Some people are nothing but a drain on resources, holding the rest of society back.
Ethiopia had plenty of people during the famine years and nothing else. So, Yeah! 😅
This is complete nonsense. Saudi Arabia is rich becuase of its oil, not its people. Without its oil, it would be poor. Without its people, some foreign country would be producing the oil.
It isn’t about oil, it is about countries that is free and those that aren’t free
This
Based on your argument, could you say that Dubai is one of the most democratic nations in the world?
I don't believe it's about freedom, it's about wise management.
no there not free.. but big contries like usa france england dont impose crazy tariffs or embargos for it. like venezuela or other poor countries@Tylory2
@@Tylory2 what is meant by free here is that it doesn’t give away its resources for foreign nations not that it is a democracy
It makes poor countries poorer because they see it as an opportunity to start a national company and they are not prepared for the oil industries savage tactics. They’re incentivized to sell off their land rights instead of develop it themselves and that is obviously a very slippery path, then that oil money becomes the main source of income (think Venezuela and Argentina here) for the government and suddenly the incentive isn’t to help grow your country’s people but to grow this one sector which becomes the only sector
In simple terms: short term thinking.
@@79Ambu Nope. These were countries that didn't have the money or knowledge or infrastructure to set up refineries, or even the oil derricks or platforms themselves. So they had to bring in outside companies and experts, and that opened a whole can of very dirty worms, like having to sell the oil as crude or outright selling the rights to the oil exploitation. The other option was to leave the oil in the ground, there was no viable long-term solution that didn't involve aggressive outsiders. Happened all over the planet, and not just with oil but also with metals and diamonds and anything that needs a developed economy to even start exploiting it.
Australia
*it makes socialist countries poorer usually due to corruption while capitalist countries usually see a massive influx of machinery and the associated skilled labor.
@@masoncomes6783 Nope again, this has nothing to do with socialist or capitalist, it just has to do with the development level of the nation. Norway and the Netherlands for example were and are quite socialist, but didn't have any problems when they found oil and gas, because they already were developed nations.
And corruption levels have nothing to do with socialism or capitalism, both economic systems have examples of highly corrupt nations or almost corruption-free nations. Usually the more developed they are, the less corruption there is. www.nature.com/articles/s41599-023-01930-5.pdf
Plain misinformation. Saudia was very poor. It was the building of infrastructure by USA (pioneers of oil industry) that made it very rich. Even though oil was discovered about 20 years before Saudi Arabia, Venezuela's corruption and instability didn't help then they got aligned with the communist bloc so USA was, well blocked by that.
True, butt I gotta agree with someone what on this, they are the exception, not the rule. Purely due to the ocean of oil under them, it was easier to strike deals with their elites than to try to swindle all that
Jesus christ how are this many people struggling to grasp this video?
Nothing you said refutes anything they said.
They never said oil has never made a country wealthier, they're just pointing out that many countries do not know how to manage a huge influx of money and resources and end up in a worse position then when they started because of mismanagement. While on the other hand a country that has become accustomed to handling excess typically makes more effective use of said money and resources.
Yeah, also he literally says: avoid what the dutch did and then list up all things the dutch did.. Like healthcare & education.
It's not misinformation is called the resource curse. Finding a single outlier is the smooth brained form of discourse and debate
Forward this video to the government of Guyana. They are showing symptoms of the Dutch disease.
Sensible lottery winners plan what to do with the money... the not so sensible buy gold Rolex's for their mates & go on spending binges.
But there is no sensible lottery player
@@swegatron2859Yup. Someone who can really manage money well (like me) will not spend a penny on lottery tickets.
@@swegatron2859 This is an obvious truth. Since there are no sensible lottery PLAYERS.
@@swegatron2859 The fact that they are lottery players is evidence that they are not sensible.
Well, that's not entirely true. Some people play the lottery for fun. But I have too many friends who base their future plans on winning the lottery.
As a Dutch, I never heard of the “Dutch disease”.
Because Western societies rarely ever portray such things, because if nobody knows, we won't recognise it still happens today.
The banana republic concept.
I heard it was actually from the sale of tullips which you guys dominated a few centuries ago
@@elkinmontoya9640 Yeah, but it's two separate cases, Tulips were the first famous "bubble" like crypto is now, and Dutch disease is specifically about oil and can be used for other fuel-based economies (i.e. natural gas).
The disease doesn't know it's a disease. That's the entire history of white people.
As a Norwegian, I have heard of the Dutch Disease for well over 20 years.
If you are a country who finds oil, make sure you make the right friends
It may be clearer to say Rich People become richer and Poor People become poorer, dependant on the ethics of the Governmental/Ruling wheelers and dealers 🤷♀️
The evil capitalists exploit the poor country.
Yeah because the United States didn't literally collapse the democratic governments of tens of countries while conducting illegal wars all over the middle East.
Let us also forget that the middle East was under colonization of the British and the French until much after the second world war.
Let us forget all history and reason, and focus on simplistic aphorisms like we are mewling children who do not know a fig from an oil tanker.
Venezuela was actually pretty rich and a lot of Venezuelans boasted a slightly more lavish and posh life compared to the rest of Latin America, that was until Hugo Chavez came into power. My Spanish teacher (I took the class for easy credits) who was Venezuelan, recalls voicing her fears of Hugo Chavez doing the same thing Fidel Castro did with Cuba, luckily she left in time, and was easily able to enter the US since her mother emigrated from the US, that doesn't mean her life in the US was easy when she first came here
It wasnt until Hugo Chaves came to power. That was in 1998, the crisis in Venezuela started in the year 2013. Who gives a *k about your teacher and his alleged fears.
The reality is that venezuelan GDP grew non stop since 1922 until the year that Hugo Chavez died. It peaked at around 400 billion dollars, it was 90 billion dollars in 1998.
Hugo Chavez oversaw a 300% growth of the venezuelan economy, over 15 years. It wasnt like he did anything special, as the venezuelan economy had been growing non-stop since 1922
Hugo Chavez saved Venezuela, it had been forced by foreign nations (mainly america) to become solely focused on exporting oil to richer countries. Chavez gave venezuela its independence back
@@williampena197 The venezuelan economy tripled in size during the reign of Hugo Chavez. Things started to go bad around the time of his death, then extremely bad extremely fast, with a 90% loss of GDP within 2 years. He was dead by then.
It's not money that makes a first world country, but its people-educated, satisfied, and with prospects for the future.
The oil curse is very much a problem in Norway as well. Human capital is found in community, and Norway is just falling apart socially. Families are being systemically destroyed, no one cares about their own family even because they leave it all to the welfare state, politicians and people are all corrupt. It would have been better if the oil had never been discovered.
it's the welfare state that destroy the family unit. Not the oil profits. Thomas Sowell explains this very well in his book ''basic economics''.
The only place that had a solution found, was the ancient and rich city state ''Sparta'' in the time of Alexander the Great. Sparta was ruled by the eldary woman, which ended up alone, old and healthy. Men had the duty to protect Sparta and died on average 20 year younger. Mothers sended their sons in military draft at the age of 6 years and the men finished the most brutal military training at the age of 18 and became soldier of Sparta till he died.
As reward for the duty that was asked of men, all men was given land, farm and 30 Slaves at 18 when he finished the military end exams. This was also the first time woman were introduced to the man and the ladies could divide the man under the woman. They would marry one after the official exams and built the family and took care of her husband. Because the man had all the welt, woman were very motivated to marry, build family and took good care of her husband and children.
The elderly woman who ruled Sparta knew that there daughters couldn't inherited any welt because woman would stop building strong families, which was untolarable because Sparta needed a lot of men in defending and to protect the city. Greek was organized in autonome, and free city-states. Cities had walls and protection was the responsibility of the citizens of that city.
Can you explain that a bit more ? I am not familiar with the term welfare state and how does the welfare state destroys families systematically?
Hats off because Diddy definitely turning that oil capital into human capital.
What part of the interview is this !
Bruh saudi Arabia wasn't rich 100 years ago.
The whole time I thought P Diddy estate had one of largest oil reserves in the world 🤷
The Prize with Dan Yergin recently came across my desk well worth obtaining the handbook on such topics very informative
Thats bollocks with that rich countries richer shit. Riyadh was a backwater before oil.
The country that had mandatory tourism couldn't be that poor
@@itsdenadathe problem was they didn't exactly have much available goods to sell without spending money on machinery; money they didn't have to even get an industry started.
Once you get machinery and skilled labor into the country it exponentially opens up opportunities in other fields.
@@itsdenadaMy grandfather talks about them living but in harsh nomadic conditions even when Saudi Arabia first became in the 3rd phase and tribal wars were fading away uniting under one rule, he saw the strong change and told me he’s afraid that is the young generation that only saw the result would not appreciate the change and be ignorant spoiled brats, which is sadly becoming the truth in nowadays generation.
@@itsdenadaplus the “mandatory” tourism doesn’t really have an income the government pays way more than the income in Pilgrimage. The services are really high and they do a lot to run the pilgrimage smoothly without any issues
If you discover oil the only country getting rich is freedom land 🦅🦅
Human capital appreciates while industrial capital depreciates. Human capital tends to have a increase in returns with training, experience ext. While capital like cars, machinery tends to break down making it less valuable over time (depreciation). Once again this is a blanket statement and not always absolute.
Umm... Saudi arabia was not rich before oil. It was literally a bunch of nomads and sandhuts before oil.
You were there?? Or did your American education told you that?
Sandhuts?
Really?
How do you build huts from sand?I'm just curious.
@Tjalve70 sandstone. Pretty easy. Arabs. Iranians, Egyptians and many utah tribes used did it. Not hard 🤷♀️
You were in mecca a 1000 yrs to observe the economy?
@Zachodin-c1l yep. I was monsa musa. Gave those barbarians so much gold it caused inflation.
Oil makes poor countries poorer because they are politically dysfunctional (also the cause of their poverty in the first place). People fighting over a windfall are not in a position to take advice.
There is a LOT of oil in a country in South America called Suriname, but it is a really poor country. America and other countries are looking into how they can get their hands on it.
Somalia needs to listen to this as they have discovered the largest oil in the world
The in fighting gonna be wild
No way... well guess they're about to experience a devastating generation of civil unrest, as external forces wrestle for control of their resources.
Somalia is probably the most clannish country in the entire world. Chances are very great that one clan will take control of all of that sweet oil money, and make that clan very wealthy.
Then again, one of the recent prime ministers in Somalia lived in Norway and got his education there. And he has been working in oil companies. So he might have an understanding about the issue, and a different attitude to most Somalis. So I guess there is some hope.
Damn Somalia has oil . What’s up with Muslim countries and oil. 💀
Saudi Sarabia makes the most money from oil because it costs only 10 dollars per barrel to extract whereas Venezuela is full of mountains so it costs over 50 dollars a barrel in some cases.
A couple of quick google searches revealed the following info:
"Saudi Arabia has a superpower. Not only is it the largest exporter of crude oil in the world; its production costs for oil projects are also the lowest in the world, at around just $10 per barrel."
"Production costs in Venezuela average between $10 and $12 per barrel"
"Oil production costs vary by geologic formation. In 2014, these costs ranged from an average of $7 a barrel for the Ghawar field in Saudi Arabia, to $21 a barrel in the offshore Norwegian fields, to $51 a barrel in the Bakken shale in the United States."
So I don't think your argument is a very good one.
Oil didn't make Venezuela poor, socialism did.
This is quite inaccurate because Norway was by no means a rich country, it was just average before it found oil
Some comment above explains why, as they seen the mistakes Dutch were making in real time and made sure to not repeat the same.
It did not recieve extra "democracy" by US. They also natiolized it
As a Scottish person, I 100% agree with this. Massive amounts of oil, gas and..poverty.
Which arab gulf state was rich before oil and gas?
Saudi wasn't rich when it discovered oil lmfao
"Rich countries richer" what a joke drawing the arab peninsula.
It was a wasteland before they discovered oil 😂
They had humble start ❤
Thanks for having the acuity to first explain the jargon that is ‘dutch disease’… saved me a trip to google 😅
The same things happen to lottery winners here in the USA. Poor people don’t understand that you must pay a lot of taxes. They have relatives that suddenly appear out of the woodwork. They invest in idiotic get rich schemes.
Although some are smart and hire financial advisors. On man turned himself into a corporation and made his children board members. So the corporation bought the homes and cars for the children. Each board member received a salary with benefits.
Erm aren’t big corporations that quite literally exploit cheap labour and children are also to do with making “rich countries riche and poor countries poorer”
In fact, corporations have a much bigger impact than oil. This is literally gaslighting at its finest
This video is about the Dutch Disease. It isn't a comprehensive explanation about everything that makes rich countries rich and poor countries poor.
Also not have 159 sanctions on you (Venezuela)
Saudi Arabia was rich prior to oil? Lol
Not even remotely. They just have such a huge quantity at such a high quality that they simply cannot spend as much as they're making. Additionally, most of the money just stays within the royal family so the inflationary effects haven't spread out to wider society in the way it did in Venezuela.
@@benghiskahn3673However, the people get quite good education.
Yeah but as others are saying, they're more an exception than the rule, purely due to the ocean of oil underneath
Infact Saudi Arabians only came to know about their oil reserves because of the US otherwise they'd still be living in huts
You got to be kidding me all this Arab country they will not reach before oil matter of fact they were so poor in the other hand Venezuela was rich country but they get that section don't twist history
The U.A.E vs Nigeria is a very good example of this situation.💯
That isn't what happened to Venezuela. They couldn't diversify their economy because of US sanctions.
Wait you discovered oil ?
America 🇺🇸 - sounds like you need some freedom !!!!
Not anymore , after the shale revolution the USA exporting oil to other country, now they just needed to convert all their oil refineries to run on shale oil instead of the gulf oil. The usa did once when Venezuela when crazy and nationalize their oil industry they going have to do it again cause stay in the middle east is a loss cause for them.
Cringe. You have to copy other people’s jokes to get attention 😂
So.... Norway right?
Thanks for this, I’ll make sure my country doesn’t make that mistake
‘Merica’s got the worst Dutch disease based off of Wall Street finances and deindustrialization
Every country has got energy under under their soil and in the sea. The earth is one planet. The dilemma we face is the cost of extracting it, through a processes of industrialisation. The problem the earth faces is not lack of oil, but lack of drinking water. What sustains life is water not oil.
Yes all good but another strict rule is to not threaten petrodollar system or you will be democratized (collonized).
Guyana needs to hear this message
So the same as Norway did.... I have nearly free hospital, nearly free schools, nearly free roads, and I don't pay more income tax then a US citizen.
I wonder if oil making "poor countries poorer" has anything to do with US sanctions
I possess a gymnasium diploma in The Netherlands. Never heard of this. We were also "taught" that the VOC voyages was for us to enjoy black pepper on our morning eggs 😂😂😂
The simple answer is FINANCES. If the government doesn't know how to handle the finances of their country then they're prone to debt traps and low investments. Smart and strategic people are heavily needed in these times.
Tulip fever as well as oil.
They were in many forms of commerce and ahead of their time including inflating the markets.
Nigeria needed this message 40 yeras ago
Some people get ‘lucky’ enough to have a disease named after them but my entire country got the dubious honor apparently
I always thought dutch disease refered to the tulip mania. Thx for sharing!
How's Guyana doing?
What is a sovereign wealth fund, and what is invest it overseas?
It doesn’t do that automatically. It’s the appropriate or inappropriate allocation of funds. It’s like when a poor person wins the Lottery and ends up bankrupt 3 years later. They simply didn’t understand money to begin with. Rich people who earned their wealth know how to manage money
Bro just said the quiet part out loud. Human capita
It's the size of the coalition needed to keep someone in power, not the size of the economy
Thank you 💡💡💡
Oil makes people who controls it richer and doesn’t do any positive thing for people out side of the circle.
Education? Health? Human capitol? I never heard of any of these ideas before… here in America we are trying together be the most powerful third world that has ever existed
HUMAN CAPITAL.. Education & health to elevate the masses. 👍👏Yes! Build a middle class of decent citizens!
“Human wealth” is something we don’t get these days
Big question is that if he was a leader, would he TRULY do that? Many can't keep their promises.
Dutch West Indies. How many flag similar to Germany does Venezuela hold on the City level?
The discovery of gas in the netherlands acctually made that they are the largest producers of greenhouse products of vegatbles, plants en cutflowers.
Saudi Arabia was not rich before oil, in fact it was very poor. Venezuela also grew hugely wealthy because of oil, it was an amazing place to live before oil prices crashed sending the economy into a spiral.
In the uk it wrecked the economy. Most industry closed down. Most of the revenue went on paying unemployment benefit. No investment. What a waste. Good analysis.
I love this type of stuff.
What does not competitive mean? Competitive compared to companies from other countries?
The reason why those countries get poorer is because a superpower comes along and pretty much colonizes them
The most valuable asset a country has is its people . Investment in their well being will be the best investment for a continued return generation after generation .
UAE 🇦🇪 is the best country had did this and invested so much in their people
I'm Dutch and was a little offended just seeing this term, but at least now I know what it means :)