Resources Booms and Macroeconomic Adjustments in Developing Countries

7A Comparative Study of Resources Booms in Papua New Guinea, Indonesia and Nigeria

7.1 Introduction

From time to time, between the early 1970s and the early 1980s, high price levels prevailed for several minerals and primary commodities bringing price instability and sectoral transformation to the economies of some primary commodity-exporting countries. Like PNG, many other agricultural-based small open economies experienced large fluctuations in their external trade as well as in their internal economic environment. Indonesia and Nigeria are two other agricultural-based, primary commodity-exporting countries which experienced a large transfers of wealth, brought about by two major oil booms over 1972–82 (1973–74 and 1979–81). PNG experienced ...