Security as a Risk Variable in the Governance of Natural Resources in Oil-Rich Gulf State

Abstract

A widely accepted hypothesis is that people are motivated by a hierarchy of needs. Safety and security of the body, morality, employment, health and resources is the second level of human needs identified by Maslow. Satisfaction associated with these issues is said to lead to a sense of belongingness and love and finally to other higher order of needs. An investment in security becomes critical when one considers the broadened view of security in relation to countries endowed with rich natural resources. Findings of recent studies alluding to resource-curse and blessings suggest negative growth and development outcomes resulting from natural resources. The rate at which natural resources are exploited becomes a cause for concern. Since the gifts of nature are not renewable and cannot be replenished, countries endowed with rich natural resources need to align themselves to economic, political, social, ethical and moral forms of governance that would insulate the country from threats of disaster. Should countries fail to align themselves to strategies that enhance sustainable socio-economic and political developments, countries could find themselves financing conflicts through natural resource exploitation resulting in predatory rulers and predatory states that lead to governments’ failure in fulfilling their mandate. Insecurity in its broadest definition reduces the return to private effort and destroys private initiatives and consequently the benefits associated with security far outweigh the costs of insecurity resulting in private and public rent seeking conduct. This paper presents the returns accruing to a country’s investment in long term security and the conduct of the private and public sector should elements of insecurity prevail.