Resource Curse

Definition

The resource curse refers to the phenomenon where countries rich in natural resources, such as oil or minerals, often experience negative consequences like economic instability, corruption, and social inequality instead of benefiting from their resource wealth.

Related terms

Dutch Disease: This term refers to an economic condition where a country's focus on one lucrative natural resource leads to neglect of other sectors such as agriculture or manufacturing.

Rent-seeking: Rent-seeking occurs when individuals or groups try to obtain economic benefits by manipulating public policies rather than creating value through productive activities.

Extractive institutions: Extractive institutions refer to systems that exploit resources for the benefit of a few elites while suppressing inclusive economic growth and political participation.