Tariffs and Trusts Won't End Illegitimate Sales of Natural Resources by Repressive Regimes

Abstract

In response to Wenar's (2008) proposal which addresses the customary rule of 'might is right', I argue that his approach fails to provide structural solutions to the illegitimate sale of natural resources by repressive governments. I first explain how his minimal conditions are not able to legitimise sales as they are not based on an exhaustive and authoritative criterion that would prevent false positives. I then contend that Wenar's trust-and-tariff mechanism, the Clean Hands Trust, depends upon unrealistic expectations of the resource-cursed government's reactions and its citizens' position.