A historical perspective on the benefits derived from countries' newly found energy source

Abstract

A newly discovered energy source is expected to make a positive contribution to the economic growth of the country. To some extent, it is even thought that this is the underlying difference between developed and developing countries today. However, in history, it is seen that the countries that find new energy sources are not always able to benefit from it. The state mechanism without the necessary financial institutions and absence of dynamic economic and commercial life may lead to the inability to benefit from the newly found energy source. In this study, we will compare two nineteenth-century empires, Ottoman and British, which found coal in their homeland. As history as shown, we argue that the political institutions and the state reflexes are critical when it comes to utilizing a newly found energy source.