The Oil Curse

The "Oil Curse" refers to the paradox where countries rich in oil often experience slower economic growth, weaker governments, and social problems. Instead of boosting prosperity, abundant oil revenues can lead to corruption, poor governance, and dependence on a single resource. This reliance makes economies vulnerable to oil price fluctuations, reducing efforts to diversify industries. The wealth generated may not benefit the entire population, leading to inequality and unrest. Overall, despite having valuable resources, oil-rich nations sometimes struggle with economic stability and good governance, illustrating the complex and sometimes negative impact of oil wealth.