Question bank / Central Ideas and Details
Economists have long observed that countries rich in oil or minerals often grow more slowly than countries without such resources, a pattern known as the resource curse. Economist Haruto Ishikawa argues that the pattern is real but not inevitable. Comparing dozens of resource-rich countries, he found that those which had independent courts and open budgets before their resources were discovered tended to grow as fast as or faster than their neighbors, while those that lacked such institutions tended to stagnate. Natural wealth, Ishikawa concludes, magnifies the strengths or weaknesses of a country's institutions rather than deciding its fate on its own.
Which choice best states the main idea of the text?
Ishikawa argues that the resource curse is a myth, since he found that resource-rich countries tend to grow faster than other countries do.
Ishikawa recommends that countries build independent courts before they search for oil or minerals.
Ishikawa contends that whether natural resources help or hurt a country's growth depends largely on the institutions it already has.
Ishikawa finds that resource-rich countries with open budgets grew more slowly than their neighbors.
Answer: C
Ishikawa accepts that the resource curse is real but says it is "not inevitable." Countries with strong institutions before their resources were found grew well, and those without them stagnated. His conclusion is that resources magnify existing institutions, choice C.
Choice B is a reasonable policy idea, but Ishikawa only reports what his comparison found; he never makes this recommendation.
Why the other choices are wrong
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