At 12:10 08/06/2006, you wrote:
However, if the oil revenues are high for several years, that might
allow the establishment of economic "facts on the ground," new
infrastructure, public health, basic research, and education that can
promote the country's long-term economic health. It might also go into
fixed investment that competes with or complements private-sector
investment and promotes long-term health. Thus, there might be
supply-promoting benefits that last longer than the high oil prices.
Aside from the substantial investments in developing human
capabilities, much money is going into development of basic industry
sectors and of production chains that break the dependence upon
foreign fabricators of local resources (in the classic colonial pattern).
michael
Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
Burnaby, B.C., Canada V5A 1S6
Currently based in Venezuela. Can be reached at
Residencias Anauco Suites
Departamento 601
Parque Central, Zona Postal 1010, Oficina 1
Caracas, Venezuela
(58-212) 573-4111
fax: (58-212) 573-7724
