Sustainable finance
Resource Curse
The paradox that countries rich in oil, gas or minerals often grow more slowly and govern worse than resource-poor peers.
Definition
The resource curse is the observed tendency of countries with abundant non-renewable natural resources — especially oil and minerals — to experience slower economic growth, weaker diversification, more corruption, less democracy and more conflict than comparable resource-poor countries. Documented in Richard Auty's "paradox of plenty" work and large statistical literatures, it operates through Dutch disease, rent-seeking, price volatility and rentier-state dynamics.
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