The Global Problem Of The Natural Resource States

THERE IS A difference between a state like the United States and a state like Saudi Arabia. In the United States, the people are a resource. In Saudi Arabia, the people are a cost.

In other words, the leaders of the United States need us, the American people. Our energy, our wealth-producing activities, our knowledge, our patriotism are the foundation upon which the power of the political leaders is built.

But the same is not true of a state like Saudi Arabia, where national income and wealth comes from pumping oil out of the ground. In Saudi Arabia (and in other natural resource states) the people are an annoying cost that reduces the revenue of the political leaders.

This model can be applied globally. States like the United States, Japan, South Korea, India, and China are nations that depend upon their people for their wealth. States like Russia, Saudi Arabia, Iran, Iraq, Venezuela, Nigeria, and now even little Bolivia are natural resource states. They do not produce much of anything that the world wants except their oil or their natural gas.

So when Russia turns off the gas to Ukraine, writes Irwin M. Stelzer, maybe we ought to pay attention. Maybe Russian President Vladimir Putin is sending

a warning to major energy-consuming countries that their long-term prosperity is in the hands of very dangerous people.

The joke is that the natural resource states need us much more than we need them. In the long term, if they push prices above the market then the energy-consuming countries will find other ways of getting energy. In the short term, certainly, they can swing their weight around and cause inconvenience.

Of course, there is no reason why the natural resource countries and their tin-pot dictators should have the influence they do. There are plenty of ways we can reduce their influence. We can build out nuclear power. We can aggressively prospect for oil and natural gas in the mainland US and offshore. But we don�t. We don�t do it because significant portions of our educated elite in the United States and elsewhere in the developed world belong to a post-Christian religious cult that experiences the earth as an expression of the divine. They experience the land outside the cities as a sacred place that should be kept apart. Characteristically, they want to force their religious beliefs onto other Americans.

But that will change. Eventually the people states will deal with the natural resource states. The only question is, shall we do it now, when the cost is manageable? Or shall we let the natural resource states wax in strength and pride and in their ability to cause mischief before we deal with them?

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Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.

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Action

The incentive that impels a man to act is always some uneasiness... But to make a man act [he must have] the expectation that purposeful behavior has the power to remove or at least to alleviate the felt uneasiness.
Ludwig von Mises, Human Action

Chappies

“But I saw a man yesterday who knows a fellow who had it from a chappie that said that Urquhart had been dipping himself a bit recklessly off the deep end.” —Freddy Arbuthnot
Dorothy L. Sayers, Strong Poison

China and Christianity

At first, we thought [the power of the West] was because you had more powerful guns than we had. Then we thought it was because you had the best political system. Next we focused on your economic system. But in the past twenty years, we have realized that the heart of your culture is your religion: Christianity.
David Aikman, Jesus in Beijing

Churches

[In the] higher Christian churches� they saunter through the liturgy like Mohawks along a string of scaffolding who have long since forgotten their danger. If God were to blast such a service to bits, the congregation would be, I believe, genuinely shocked. But in the low churches you expect it every minute.
Annie Dillard, Holy the Firm

Civil Society

“Civil Society”—a complex welter of intermediate institutions, including businesses, voluntary associations, educational institutions, clubs, unions, media, charities, and churches—builds, in turn, on the family, the primary instrument by which people are socialized into their culture and given the skills that allow them to live in broader society and through which the values and knowledge of that society are transmitted across the generations.
Francis Fukuyama, Trust

Class War

In England there were always two sharply opposed middle classes, the academic middle class and the commercial middle class. In the nineteenth century, the academic middle class won the battle for power and status... Then came the triumph of Margaret Thatcher... The academics lost their power and prestige and... have been gloomy ever since.
Freeman Dyson, “The Scientist as Rebel”

Conservatism

Conservatism is the philosophy of society. Its ethic is fraternity and its characteristic is authority — the non-coercive social persuasion which operates in a family or a community. It says ‘we should...’.
Danny Kruger, On Fraternity

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What distinguishes true Conservatism from the rest, and from the Blair project, is the belief in more personal freedom and more market freedom, along with less state intervention... The true Third Way is the Holy Grail of Tory politics today - compassion and community without compulsion.
Minette Marrin, The Daily Telegraph

Conversion

“When we received Christ,” Phil added, “all of a sudden we now had a rule book to go by, and when we had problems the preacher was right there to give us the answers.”
James M. Ault, Jr., Spirit and Flesh

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I mean three systems in one: a predominantly market economy; a polity respectful of the rights of the individual to life, liberty, and the pursuit of happiness; and a system of cultural institutions moved by ideals of liberty and justice for all. In short, three dynamic and converging systems functioning as one: a democratic polity, an economy based on markets and incentives, and a moral-cultural system which is plural and, in the largest sense, liberal.
Michael Novak, The Spirit of Democratic Capitalism

Drang nach Osten

There was nothing new about the Frankish drive to the east... [let] us recall that the continuance of their rule depended upon regular, successful, predatory warfare.
Richard Fletcher, The Barbarian Conversion

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E. G. West, Education and the State

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