Resources Curse

The Resource Curse, also known as the Paradox of Plenty, refers to the paradox where countries rich in natural resources, such as oil or minerals, often experience slower economic growth, weaker governance, and higher levels of corruption compared to resource-poor nations. This happens because resource wealth can reduce the incentive to develop other industries, lead to economic dependence on volatile resource markets, and empower corrupt elites. Consequently, instead of fostering development and stability, resource wealth can undermine long-term economic health and political stability.