Dutch model

The Dutch disease refers to an economic situation where a country experiences a natural resource boom, like oil or gas, leading to currency appreciation. This makes other sectors, such as manufacturing or agriculture, less competitive internationally because their goods become more expensive. As a result, the economy becomes overly dependent on resource exports, risking instability if resource prices fall. The term originated in the Netherlands in the 1960s after discovering natural gas, illustrating how resource wealth can unintentionally harm broader economic diversity and growth.