Resource curse

The term “resource curse” refers to the observation that countries with abundant natural resources also tend to be less economically developed than those with scarcer resources.

The term “resource curse” refers to the observation that countries with abundant natural resources also tend to be less economically developed than those with scarcer resources. The term was first used by UK economist Richard Auty in 1993, but the concept is hundreds of years old.

There are several potential explanations. Some debate whether the idea of a “resource curse” is even valid, or whether it is more specific to individual countries and arises from a combination of problems rather than simply plentiful commodities.

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