The fate of a rentier state
Nigeria cuts after oil price fall
"Nigeria has announced major budget cuts following recent falls in the price of oil, after a special cabinet meeting..."The government had been expected to present its budget for 2009 to the national assembly next week.
"The oil price has fallen by more 50% in just three months and Nigeria relies almost exclusively on oil for its revenue...
"Our correspondent says oil money is Nigeria's lifeblood, and although most Nigerians see very little of the country's huge oil wealth, it does trickle down through the economy from the ruling elite...
"He also says that in the past, a falling oil price has meant more political tension as members of Nigeria's elite compete for access to the decreasing pot of cash."
And it's not just Nigeria. See 3 Oil-Rich Countries Face a Reckoning
"As the price of oil roared to ever higher levels in recent years, the leaders of Venezuela, Iran and Russia muscled their way onto the world stage, using checkbook diplomacy and, on occasion, intimidation.
"Now, plummeting oil prices are raising questions about whether the countries can sustain their spending — and their bids to challenge United States hegemony..."
Labels: concepts, economics, Nigeria, theory
posted by Ken Wedding @ 6:18 AM
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