Resource curse theory posits that countries with abundant natural resources often face political instability due to factors such as corruption, mismanagement, and unequal wealth distribution.
The resource curse, also known as the paradox of plenty or the poverty paradox, is the hypothesis that countries with an abundance of natural resources (such as fossil fuels and certain minerals) have lower economic growth, lower rates of democracy, or poorer development outcomes than countries with fewer natural ...
A curse (also called an imprecation, malediction, execration, malison, anathema, or commination) is any expressed wish that some form of adversity or misfortune will befall or attach to one or more persons, a place, or an object.
Diversifying a nation's economy can help it avoid a resource curse. Angola and Saudi Arabia both suffer from the resource curse, although Saudi Arabia has had success diversifying in recent years.
The term 'resource curse' was itself first coined by Professor Richard Auty in 1993 in his seminal book, Sustaining Development in Mineral Economies: The Resource Curse Thesis (Auty, 1993).
What is Resource Curse | Resource Curse Theory | Relevance and Criticisms
What is the Dutch curse?
The 'Dutch disease', a phenomenon frequently referred to in 'resource curse' literature, was first used to describe the Dutch economic experience where the manufacturing sector declined and suffered general inflation as a result of the booming natural gas sector.
By contrast, however, there are many examples of resource rich countries, for example, Norway, Australia and Canada that have been able to avoid the resource curse.
The African continent is no doubt the most resource-abundant continent. Resources such as gold, diamond, oil, natural gas, copper, uranium, among others are mined in different parts of the continent. Almost every country in Africa has a deposit of natural resources, Africa is also the poorest continent in the world.
The “third-generation curse” is a well-known phenomenon in the world of family wealth, where the hard-earned fortune of the first generation often fails to survive beyond the third generation. Wealth that has taken decades to accumulate can be squandered within a few years if not properly managed.
In the Bible, the curse is when God hands people over to the consequences of seizing blessing on their own terms. It is a curse because, instead of abundance and life, we end up with scarcity, isolation, and death. But where did this curse come from?
Examples of resource-rich countries, with relatively poor rates of economic growth, include Nigeria, Zambia, Sierra Leone, Angola, Saudi Arabia and Venezuela. Resource-poor countries, such as Korea, Taiwan, Hong Kong, Japan and Singapore, by contrast, have experienced better rates of economic growth.
To eradicate the resource curse generally, a great deal of research has offered solutions such as solid macro-economic policies, economic diversification, natural resource funds, domestic or national ownership of resources, as well as transparency and accountability initiatives (Weinthal & Luong, 2006).
While the Curse of Vanishing can't be removed from an enchanted item, you can avoid its effects. Simply don't pick up or equip any items with this spooky enchantment! Leave them where they lie or destroy them to avoid the heartbreak of losing an enchanted favourite forever.
Dutch disease is a concept that describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors. It is also often characterized by a substantial appreciation of the domestic currency.
Switzerland: Switzerland is a landlocked country in Europe known for its banking and finance sector, precision instruments, and tourism. Unlike many other countries, Switzerland has no significant natural resources or mineral deposits.
For example, if first world nations like the U.S. see a sub-Saharan African having a stunted economic growth despite having many natural resources, they might conclude that there is a poor government and/or corruption unable to provide for the needs of the people and be hesitant to send foreign aid.
According to my Dutch students, this is not necessary in the Netherlands, and could actually result in problems. When someone says 'I'm sorry,' it is taken more literally and is interpreted as an admission of guilt.
Dutch disease is a shorthand way of describing the paradox which occurs when good news, such as the discovery of large oil reserves, harms a country's broader economy. It may begin with a large influx of foreign cash to exploit a newfound resource.
