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The International Herald Tribune: "Dutch Disease"

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  • The International Herald Tribune: "Dutch Disease"

    The International Herald Tribune: "Dutch Disease" Threatens Azerbaijan

    PanARMENIAN.Net
    26.07.2006 16:34 GMT+04:00

    /PanARMENIAN.Net/ For Azerbaijan, the biggest question at present
    is what to do with the so-called "wall of money" that will start
    to accrue once the oil begins to flow. Some observers are already
    predicting a bad case of pending "Dutch disease"- by which an increase
    in oil revenues renders a country's manufacturing less competitive
    by raising the exchange rate - unless Baku manages to divert both
    state and private investment into the non-oil sector and addresses
    the subject of income disparity between the new rich and the growing
    number of disgruntled or desperately poor," Thomas Goltz wrote for
    The International Herald Tribune.

    "For now, the question of the political ramifications of future
    oil-related wealth is on hold as investors, citizens and former
    pipe-dreamers celebrate the realization of what is now a "pipeline
    to somewhere." I hope my zany motorcycle circus of six years ago
    played some little part in this process. I also hope that the current
    leadership of Azerbaijan will use the occasion of its new-found wealth
    to win more than just fair-weather friends and address some of the
    urgent social issues at play here on the shore of the Caspian,"
    the observer wrote.
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