What is resource curse hypothesis?
The resource curse hypothesis postulates that economies with the abundance of natural resources, such as oil, gas, coal and ore, have better potential to perform better for economic development than the economies with no or fewer natural resources.
How can resource curse be explained?
The resource curse, or resource trap, is a paradoxical situation in which countries with an abundance of non-renewable natural resources experience stagnant economic growth or even economic contraction. At times, the resource curse can also result from government corruption.
What are the drivers of resource curse?
The “resource curse” in development is well known. Countries endowed with valuable natural resources –most notably oil, natural gas, minerals, and diamonds – often also suffer from poor governance, high poverty, and conflict.
Who came up with the resource curse?
economist Richard Auty
The British economist Richard Auty coined the term “resource curse” in a 1993 book investigating why resource-rich countries under-performed other developing economies.
Is there a resource curse?
The resource curse, also known as the paradox of plenty or the poverty paradox, is the phenomenon of countries with an abundance of natural resources (such as fossil fuels and certain minerals) having less economic growth, less democracy, or worse development outcomes than countries with fewer natural resources.
How do you stop a resource curse?
Untangling the link between violence and resource wealth
- Large windfalls of politically controlled natural resource revenues encourage violence.
- Elected local governments are more successful than appointed governments in discouraging violence.
What are the 5 types of natural resources?
Oil, coal, natural gas, metals, stone and sand are natural resources. Other natural resources are air, sunlight, soil and water. Animals, birds, fish and plants are natural resources as well.