Dutch Disease

Dutch Disease is an economic phenomenon where a country's discovery or surge in resource exports, like oil or minerals, causes its currency to strengthen. This makes other industries, such as manufacturing or agriculture, less competitive internationally because their goods become more expensive abroad. As a result, these sectors may shrink, leading to less economic diversity and potential reliance on resource exports. The term originated from the Netherlands' experience in the 1960s after discovering natural gas, which inadvertently hurt its manufacturing industry.