Dutch Disease and Oil

CBC’s the Current had an excellent segment on Dutch Disease and what to do about it.  The set-up was quite good.  First they interviewed an economist about what Dutch disease actually is and to what extent it applies to Canada.  Then they interviewed my favourite gliberal economist.  His response was boilerplate: there was ‘nothing to be done’ (Lenin’s mirror).  Then the Current did something really interesting, they actually interviewed an expert.  You know, someone with the relevant training for the subject at hand and with direct and detailed experience: one of the architects of Norway’s oil sector.  Imagine that.

The interesting point he made is that revenue generated out of the resource sector (and Norwegian government generates as a percent of the total take almost more than anywhere else) and plough some of it back into productivity enhancing investment in other non-oil related sectors of the economy.  All very standard anti-staples trap theory thinking.


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