Natural Resource Curse

The Natural Resource Curse refers to the paradox where countries rich in natural resources, like oil, minerals, or gas, often experience slower economic growth, weaker development, and unstable politics compared to resource-poor countries. This occurs because reliance on resource exports can lead to economic volatility, corruption, and neglect of other sectors like manufacturing and agriculture. Additionally, resource wealth may cause governments to ignore broader governance issues, fostering inequality and conflict. Essentially, having abundant natural resources doesn't automatically guarantee prosperity; in fact, it can sometimes hinder sustainable, inclusive development.