Contents

Editorial7

Dead Ends of Transition: Rentier Economies and Protectorates 9
Michael Dauderstädt

Rentier Economies as Obstacles to Development and Peace

Transformation of "Protectorates": Building Effective, Accountable States 29
Barnett R. Rubin

Authoritarian Rentier States in the Broader Development Context 36
Richard M. Auty

The "Resource Curse": An Empirical Overview 48
Indra De Soysa

Institutions, Human Capital, and Diversification of Rentier Economies 59
Thorvaldur Gylfason

Context, Path Dependency, and Oil-Based Development in the Gulf of Guinea 71
Ricardo M. S. Soares de Oliveira

Exits from the Dead Ends of Tranition I:Overcoming the Resource Curse

Oil Funds as a Policy Instrument to Promote Transparency and Accountability for Economic Development in Oil-Rich Countries 87
Ugo Fasano

Rents, Reform, and Authoritarianism in the Middle East 100
Oliver Schlumberger

Oil Wealth and Regime Change 114
Benjamin Smith

Avoiding the Resource Curse: What Can We Learn from the Case of Botswana? 128
Transparency International

Regulating Resource Governance: The Role of Governments, Companies, and Civil Society Organizations 137
Wolf-Christian Paes

Exits from the Dead Ends of Transition II: Transforming Post-Conflict Societies

Economic Causes and Consequences of Civil War: A Discussion of the Possible Policy Interventions 151
Paul Collier and Anke Hoeffler

Development Challenges for Post-Conflict Protectorates 159
Willemijn Verkoren

The Transformation of Protectorates: Case Study of Iraq, with Particular Reference to the Central Bank 170
Simon Gray

Transforming Liberia and Sierra Leone: A Paradox of External Intervention 185
Judy Smith-Höhn

Transforming Kosovo: Searching the Balance between Market Discipline and Political Stability 197
Andreas Wittkowsky

Making Sure that Institutions Matter: Democratization through Undemocratic Means in Bosnia-Herzegovina 206
Thorsten Gromes

Transformation in European Protectorates: From Sarajevo to Pristina 219
Gerald Knaus

Bibliography233

Notes on the Contributors/Authors248