Page data
Type Stub
Authors Chris Watkins
Published 2012
License CC-BY-SA-4.0
Impact Number of views to this page. Views by admins and bots are not counted. Multiple views during the same session are counted as one. 218

The resource curse, also known as the "Paradox of Plenty," is the often-occurring paradox that nations with an abundance of non-renewable natural resources tend to have less successful development than other countries.

Non-renewable resource - generally fossil fuels and minerals - tend to drive a competition among elites (political elites, military, and other groups) and corporations to exploit the resource. The country's political development and its citizens tend to suffer.

Not all such resource-rich countries suffer the resource curse. An effective way to avoid the curse is to levy higher taxes relative to other activities, and place the earnings in a form of trust that cannot be easily be accessed for short-term political purposes such as "vote buying" through excess spending. Norway is an excellent example of this and many other countries are following its lead.[1]

Notes and references[edit | edit source]

  1. The Resource Curse - podcast interview, Late Night Live - ABC Radio National (Australian Broadcasting Corporation).

See also[edit | edit source]

External links[edit | edit source]

  • The Resource Curse - podcast interview, Late Night Live - ABC Radio National (Australian Broadcasting Corporation)