Technology, block chains and curse of natural resources


nnnIn Switzerland, Russia, Nigeria, Iraq, these countries are rich in natural resources, but the so-called “rich paradox” under these countries on the excessive dependence on natural resources to the national stability has a negative impact. Therefore, the development of renewable energy is the focus of national development, for which some countries have adopted the block chain technology for the domestic economic diversification to explore new roads.n
nnTranslation: Annie_Xun
n”Rich paradox”, natural resources is both a gift of the emerging economy and a curse. Found that a large number of new resources usually do not bring economic prosperity.n
nThe world continues to repeat this story. Countries rich in natural resources often become victims of poverty, instability and despotism.n
nThe 1997 study by Jeffrey D. Sachs and Andrew M. Warner showed that countries with large resources often experienced lower rates of economic growth and there was little evidence that geographical or climate effects had any effect on the phenomenon.n
nIt seems that dependence on energy resources is directly related to authoritarianism. Stanley University Larry Diamond said, “60% of the world’s 23 countries rely on LPG exports, and no country is truly democratic.”n
nn
nVenezuelan
nVenezuela may be the most important example of this situation, its oil reserves in the world first, but is experiencing the worst economic crisis in history. Was once the richest economy in South Asia, now like the Middle East in the civil war. In 2014, the country’s murder rate soared.n
nVenezuela is too dependent on oil, leading the country into difficult situations. Oil accounts for 96% of domestic exports, making the country vulnerable to changes in oil prices. More than that, the country’s dependence on resources has caused a poor relationship between the oil industry and the government, corruption is rampant, leaders do not want to let go of their money tree.n
nn
nIraqn
nIraq on the other side of the world has also encountered a similar dilemma.n
nMore than half of Iraq’s GDP comes from oil, and domestic oil reserves are 10% of the world’s proven oil reserves.n
nDuring the administration of Saddam Hussein experienced a similar situation in Venezuela. Saddam Hussein’s use of rich resources to bring people to oppress the people, increase military power, and Iran and Kuwait and other neighboring countries to carry out fruitless war. In addition the regime also built the largest palace, the cash transferred to their own personal bank account.n
nThese acts undermine the domestic economic outlook, leading to one of the most horrific wars recently.n
nn
nNigerian
nIn Africa, Nigeria has been able to surpass the world’s top 20 economies, has experienced a very promising growth period. Beginning in 1956, when the Niger Delta discovered oil, the state began to slide to the dangerous road of oil dependence.n
nNigeria was hit by oil prices, affecting the project at the time, undermining the country’s GDP. Now the country is facing negative growth rates and turbulence. Want to restore the previous glory, it is best to explore other industries. “For a long time we have lived on borrowed necessities,” said Charles Soludo, former governor of the Bank of Nigeria (CBN, Central Bank of Nigeria). “I think the next generation, the next generation of people reaching 400 million people in 2050, can not rely on oil” Then
nIndeed, the diversity of the domestic economy is the key to breaking this curse.n
nn
nThe arrival of block chain technologyn
nSome countries are aware of the excessive reliance on non-renewable natural resources and have begun to diversify their economies through new technology development.n
nSaudi Arabia, Russia and the UAE are important examples, they have begun to use the technical aspects of dependence on LPG.n
nn
nSaudi Arabia n
nSaudi Arabian royal family Mohammad bin Salman has developed the Vision 2030 program, which has many goals, mainly to let the country out of dependence on oil. Through the development of renewable energy and consumer goods, hoping to non-oil exports of GDP accounted for 50% increase.n
nSaudi Arabia also through the chain chain technology to reform the banking system, simplify the real estate industry, ease trade with neighboring countries.n
nn
nUAEn
nThe UAE is also seeking diversification, with a recent investment of $ 163 billion in renewable energy projects, as well as the Energy Strategy 2050 (Energy Strategy 2050). Chief Sheikh Mohammed explained that “the plan aims to increase the use efficiency by 40% and the clean energy supply to 50%.”n
nThe UAE is also leading the way to streamline government and banking processes through block-chain technology, with the aim of becoming a diverse “knowledge-based” economy.n
nIn the Vision 2021 of the UAE, countries want to use block-chain technology to completely change the way the government tracks and processes data. Through the elimination of unnecessary bureaucratic processes, aimed at simplifying the education system, health care and banking.n
nn
nRussian
nRussia may be the most interesting case of diversification of natural resources. They did not choose to completely abandon the dependence on oil, but began to start to create 100 billion US dollars of Bitcoin mine.n
nThe Russian government has developed an ICO program to invest in large-scale coin mines, allowing miners to use domestic 20GW excess electricity for bitmember mining and compete with China. “RMC plans to use the Russian semiconductor chip designed for satellites to minimize the energy consumption of the computer that encrypts money,” said Dmitry Marinichev, an Internet supervisor at Putin, at a news conference in Moscow. Marinichev also said that the country may have the most 30% of the global encrypted money market.n
nEveryone can get mining hardware, everyone gets to dig a part of Bitcoin, not only to inspire people to participate, and to promote the huge domestic economic restructuring, it is still impossible to predict how the results.n
nWhile there is currently no complete alternative to natural resources, observing the progress of these countries may provide a way forward for the future. Technology to the country out of dependence on non-renewable resources, to achieve diversification provides an unprecedented opportunity.n

Leave a Reply

Your email address will not be published. Required fields are marked *