Do “Resource‐Cursed States” Have Lower Levels of Social and Institutional Trust? Evidence from Africa and Latin America

Abstract

ObjectiveThis study examines whether a state's abundance of natural resource wealth, such as oil or gas, leads to lower levels of social and institutional trust than in countries that are not as “cursed” with resources.MethodsTo test this we use survey data from both the Afrobarometer survey (2008–2009) and comparable data on Latin America from the Latin American Public Opinion Project (LAPOP), using 44 countries, as well as subnational data from two large oil‐producing countries (Nigeria and Mexico).ResultsUsing multilevel logit analysis we find that individuals in countries that are oil and gas producers are less likely to exhibit high levels of social or institutional trust than individuals in countries that are not oil or gas producers. However, when examining oil‐producing regions within Nigeria and Mexico, we find that individuals in such regions tend to express relatively higher levels of individual social and institutional trust than regions that are not oil producers.ConclusionThese findings can be explained by the differential effects of oil and gas wealth—at the national level, oil and gas wealth promotes corruption and a general erosion of both institutional and interpersonal trust, especially for those who live in regions that do not directly benefit from oil and gas revenues. However, in regions within countries, people who reside in such regions are more likely to directly benefit from the economic spoils and patronage derived from resource revenues.