Natural Capital and the Resource Curse

Countries that are rich in natural resources such as oil, gas, or minerals often fare worse economically because of those resources. This conundrum, known as the resource curse, occurs when the country becomes heavily dependent on one export. Rather than distribute income to the general population, the single revenue source can inflate the local currency and drive up the prices of other exports (decreasing export sales), increase the odds of economic disparity and high-level corruption, and t...