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resource curse

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Also known as paradox of plenty, natural resource curse, poverty paradox

economic theory that wealth of resources slows national growth

Wikidata facts

Instance of
paradox
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on focus list of Wikimedia project
WikiProject Climate change
has cause
wealth
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~40 min read

Encyclopedic overview

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 resources. There are many theories and much academic debate about the reasons for and exceptions to the adverse outcomes. Most experts believe the resource curse is not universal or inevitable but affects certain types of countries or regions under certain conditions. As of at least 2023, there is no academic consensus on the effect of resource abundance on economic development.

History

Excerpted from Wikipedia’s “resource curse” article, available under the CC BY-SA 4.0 licence.