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ElGindi, T. (2016). Natural Resource Dependency, Neoliberal Globalization and Income Inequality: Are They Related? A Longitudinal Study of Developing Countries (1980–2010). Current Sociology. 1–33. DOI: 10.1177/0011392116632031.

Learning Objective: LO 8-4: Apply theoretical perspectives to analyze the existence and persistence of global inequality.

Summary: The author looks at the trends in the growth of inequality in developing countries using longitudinal data to assess the impact of internal natural resource dependency, nation-state institutions, and indigenous population dynamics on local wealth distributions. Being resource-dependent and having democratic governance were positively associated with increasing inequality, with population growth rates being the most significant factor affecting income inequality.

Questions to Consider:

1. What is natural resource dependency, and what theories does ElGindi present addressing why this characteristic is associated with increased economic inequality and poverty in developing countries?
2. What is the role played by domestic elites in the process of resource extractive activities in developing countries? Why may these roles, values, or behaviors of the local “state or elite classes” contradict the well-being, status, or well-being of poor in the developing countries?
3. Are the pros and cons for developing countries to allow foreign direct investment (FDI)? What are the main arguments for why FDI may positively or negatively affect income inequality?