The resource curse (Paradox of Plenty) refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources. This is hypothesized to happen for many different reasons, including a decline in the competitiveness of other economic sectors (caused by appreciation of the real exchange rate as resource revenues enter an economy), volatility of revenues from the natural resource sector due to exposure to global commodity market swings, government mismanagement of resources, or weak, ineffectual, unstable or corrupt institutions (possibly due to the easily diverted actual or anticipated revenue stream from extractive activities).
Read more about Resource Curse: Resource Curse Thesis, Criticisms
Famous quotes containing the words resource and/or curse:
“No, Ernest, don’t talk about action.... It is the last resource of those who know not how to dream.”
—Oscar Wilde (1854–1900)
“There are lone figures armed only with ideas, sometimes with just one idea, who blast away whole epochs in which we are enwrapped like mummies. Some are powerful enough to resurrect the dead. Some steal on us unawares and put a spell over us which it takes centuries to throw off. Some put a curse on us, for our stupidity and inertia, and then it seems as if God himself were unable to lift it.”
—Henry Miller (1891–1980)