Compared with  2/4  BIS - Central bankers' speeches  administrative allocations, auctions are more transparent, less dependent on officials' subjective judgment, and can yield more significant revenues or cost savings for governments. Director of ceremonies, ladies and gentlemen, 9. In a 1995 study, the economists Jeffrey Sachs and Andrew Warner demonstrated that resource-rich countries generally do not become wealthier.
This brings me to the third point. Natural resource wealth is not necessarily a blessing. Spending this newfound wealth in terms of oil crowds out industries that are exposed to international competition, thereby reducing growth capacity – the so-called Dutch disease.