Leadership Quote by Guy Standing
““It is a sad irony that many countries possessing natural resources with high income potential have floundered into civil strife as factions compete for their share of the bounty, often monopolized by despotic leaders. Sharing the resource wealth across the country is one suggested way to defuse the threat of political conflict, usually by transferring part of the earnings to local area governments and, in particular, to the area where the natural resource is exploited, be it oil, diamonds or other minerals. In some cases, this fiscal devolution route has limited the conflict, if the amount transferred is large enough. However, in others it has triggered conflict by giving local dissidents the means to pay for insurrection.57 It turns out that the optimum way to defuse or prevent potential conflict is to pay direct cash transfers to all individuals, which would make it much more difficult for secessionist movements or local political parties to appropriate the resources.””
About This Quote
Source Article: The Economics of Resource Wealth, Guy Standing, 2010
Redistributing resource profits locally can reduce conflict, but direct cash transfers to citizens are most effective.
In simple terms: Giving money to people cuts conflict.
Implement universal cash transfers.
Themes
Mood
Type
When to use this quote
- government policy
- community development
- post‑conflict reconstruction
- NGO programs
Key Concepts
Questions to Reflect On
- What safeguards ensure cash aid remains beneficial?
- How to balance local empowerment with national stability?
Cash transfers may cause inflation or dependency if not managed.