Oil Wealth, Weak Institutions, and Governance Risk in Emerging Petro-States

Authors

  • Prof. Dr. Stanley Anthony Vivion Paul (Sr.) Professor, University of Excellence, Management and Business (U.E.M.B.), Georgetown, GUYANA.
  • Prof. Dr. Justin Joseph Professor, University of Excellence, Management and Business (U.E.M.B.), Georgetown, GUYANA.
  • Prof. Stanley Anthony Vivion Paul (Jr.) Professor, University of Excellence, Management and Business (U.E.M.B.), Georgetown, GUYANA.
  • Prof. Orande Kenneatior Solomon Professor, University of Excellence, Management and Business (U.E.M.B.), Georgetown, GUYANA.

DOI:

https://doi.org/10.55544/sjmars.5.1.12

Keywords:

resource governance, oil wealth, petro-state, institutions, fiscal rules

Abstract

This article argues that the central governance problem in emerging petro-states is not the presence of oil wealth itself, but the interaction between sudden revenue expectations and weak institutional restraint. Where licensing systems are opaque, fiscal rules underdeveloped, and accountability institutions politically vulnerable, petroleum wealth can magnify rather than solve development deficits. Drawing on resource-governance evidence and classic scholarship on the political economy of oil, the article contends that new producers face a narrow window in which to establish credible rules before rent expectations harden into entitlement politics. The most serious risks lie in discretionary licensing, off-budget spending, weak parliamentary oversight, and the politicization of state-owned enterprises. The article concludes that institutional sequencingnot merely production volume, determines whether oil becomes a developmental instrument or a governance accelerant for fragility.

References

[1] Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown.

[2] Collier, P. (2007). The bottom billion: Why the poorest countries are failing and what can be done about it. Oxford University Press.

[3] International Monetary Fund. (2012). Macroeconomic policy frameworks for resource-rich developing countries.

[4] Karl, T. L. (1997). The paradox of plenty: Oil booms and petro-states. University of California Press.

[5] Natural Resource Governance Institute. (2021). Resource governance index: Guyana (oil and gas).

[6] Ross, M. (2012). The oil curse: How petroleum wealth shapes the development of nations. Princeton University Press.

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Published

2026-02-28

How to Cite

Paul (Sr.), tanley A. V., Joseph, J., Paul (Jr.), S. A. V., & Solomon, O. K. (2026). Oil Wealth, Weak Institutions, and Governance Risk in Emerging Petro-States. Stallion Journal for Multidisciplinary Associated Research Studies, 5(1), 84–86. https://doi.org/10.55544/sjmars.5.1.12

Issue

Vol. 5 No. 1 (2026): February Issue

Section

Articles

License

Copyright (c) 2026 Stallion Journal for Multidisciplinary Associated Research Studies

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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