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:
“Your kind doesn’t just kill men. You murder their spirits, you strangle their last breath of hope and freedom, so that you, the chosen few, can rule your slaves in ease and luxury. You’re a sadist just like the others, Heiser, with no resource but violence and no feeling but fear, the kind you’re feeling now. You’re drowning, Heiser, drowning in the ocean of blood around this barren little island you call the New Order.”
—Curtis Siodmak (1902–1988)
“I would as soon leave my son a curse as the almighty dollar.”
—Andrew Carnegie (1835–1919)