Resource curse

natural resource curseParadox of PlentyNatural resourcesresource fueledThe Natural Resource Trapthe Resource Curse
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.wikipedia
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Jeffrey Sachs

Jeffrey D. SachsJeff SachsJeffery Sachs
An influential study by Jeffrey Sachs and Andrew Warner found a strong correlation between natural resource abundance and poor economic growth.
Sachs's policy and academic works span the challenges of globalization and include the relationship of trade and economic growth, the resource curse and extractive industries, public health and economic development, economic geography, strategies of economic reform, international financial markets, macroeconomic policy, global economy competitiveness, climate change and the end of poverty.

Natural resource

natural resourcesresourcesmineral resources
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.
Natural resources can add substantial amounts to a country's wealth, however, a sudden inflow of money caused by a resource boom can create social problems including inflation harming other industries ("Dutch disease") and corruption, leading to inequality and underdevelopment, this is known as the "resource curse".

Democracy

democraticdemocraciesdemocratically
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.
Neither is there convincing evidence that increased reliance on oil revenues prevents democratisation, despite a vast theoretical literature on "the Resource Curse" that asserts that oil revenues sever the link between citizen taxation and government accountability, seen as the key to representative democracy.

Conflict resource

conflict mineralsconflict mineralblood minerals
Thirdly, access to resource revenues by belligerents can prolong conflicts (the "conflict resource" argument).
There is both statistical and anecdotal evidence that belligerent accessibility to precious commodities can prolong conflicts (a "resource curse").

Price of oil

oil pricesoil priceprice of petroleum
Prices for some natural resources are subject to wide fluctuation: for example, crude oil prices rose from around $3 per barrel to $12/bbl in 1974 following the 1973 oil crisis and fell from $27/bbl to below $10/bbl during the 1986 glut.
Low oil prices could alleviate some of the negative effects associated with the resource curse, such as authoritarian rule and gender inequality.

Petro-sexual politics

Research links gender inequality in the Middle East to resource wealth, and likewise for the problems of "petro-sexual politics" in Nigeria.
Petro-sexual politics can yield new methods of theorizing global politics, particularly as explained here for the Nigerian case of the "natural resource curse".

Juan Pablo Pérez Alfonzo

Juan Pablo Pérez AlfonsoJuan Pablo Perez Alfonzo
As Venezuelan oil minister and OPEC co-founder Juan Pablo Pérez Alfonzo presciently warned in 1976: "Ten years from now, twenty years from now, you will see, oil will bring us ruin... It is the devil's excrement."
In 1976 Pérez Alfonzo gave an intuitive warning about what economists now call the "natural resource curse": "Ten years from now, twenty years from now, you will see, oil will bring us ruin... It is the devil's excrement." This was the case during the "1980s oil glut".

Petro-aggression

Jeff Colgan observed that oil-rich states have a propensity to instigate international conflicts as well as to be the targets of them, which he referred to as "petro-aggression".

Freight equalisation policy

freight equalization policy
According to Professor Stuart Corbridge, the policy discouraged the establishment of "resource-processing industries in eastern India, as opposed to the extractive industries, which seem to have imposed on the region a version of the 'resource curse' noted more frequently in sub-Saharan Africa."

Paradox

paradoxesparadoxicallogical paradox
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Fossil fuel

fossil fuelsoil and gasOil & Gas
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Mineral

mineralsmineral depositsaccessory mineral
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Economic growth

growthGDP growthgrowth rate
An influential study by Jeffrey Sachs and Andrew Warner found a strong correlation between natural resource abundance and poor economic growth. The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Economic development

developmenteconomicdevelop
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (such as fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Lottery

lotterieslottery ticketLotto
While "the lottery analogy has value but also has shortcomings", many observers have likened the resource curse to the difficulties that befall lottery winners who struggle to manage the complex side-effects of newfound wealth.

Publication bias

File drawer problemfile drawer effectself-selecting nature of the positive reports
The authors note that "approximately 40% of empirical papers finding a negative effect, 40% finding no effect, and 20% finding a positive effect" but "overall support for the resource curse hypothesis is weak when potential publication bias and method heterogeneity are taken into account."

Comparative Political Studies

A 2011 study in the journal Comparative Political Studies found that "natural resource wealth can be either a “curse” or a “blessing” and that the distinction is conditioned by domestic and international factors, both amenable to change through public policy, namely, human capital formation and economic openness."

Groningen gas field

Groningengas winning in GroningenGroningen natural gas field
Dutch disease first became apparent after the Dutch discovered a huge natural gas field in Groningen in 1959.

Venezuela

VenezuelanBolivarian Republic of VenezuelaVEN
This process has been witnessed in multiple countries around the world including but not limited to Venezuela (oil), Angola (diamonds, oil), the Democratic Republic of the Congo (diamonds), and various other nations.

History of the Venezuelan oil industry

VenezuelaVenezuelan oilhistory of oil production
This process has been witnessed in multiple countries around the world including but not limited to Venezuela (oil), Angola (diamonds, oil), the Democratic Republic of the Congo (diamonds), and various other nations.

Angola

Republic of AngolaAngolanAO
This process has been witnessed in multiple countries around the world including but not limited to Venezuela (oil), Angola (diamonds, oil), the Democratic Republic of the Congo (diamonds), and various other nations.

Mining industry of Angola

Mining in Angoladiamond minesdiamond mining accident in Angola
This process has been witnessed in multiple countries around the world including but not limited to Venezuela (oil), Angola (diamonds, oil), the Democratic Republic of the Congo (diamonds), and various other nations.

Sonangol Group

SonangolANGOLAngol SA
This process has been witnessed in multiple countries around the world including but not limited to Venezuela (oil), Angola (diamonds, oil), the Democratic Republic of the Congo (diamonds), and various other nations.