The Resource Curse – Why Rich Countries in Resources Stay Poor
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The Resource Curse – Why Rich Countries in Resources Stay Poor
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This episode explains the paradox of the “resource curse,” in which countries rich in natural resources often experience poverty, corruption, and instability instead of prosperity. It shows how easy revenue from oil, minerals, and timber weakens accountability, encourages corruption, and prevents economic diversification.
The episode examines how political elites and foreign corporations capture most resource profits through unequal contracts and secret deals, while local communities suffer environmental damage and limited development. It also explains how “Dutch disease” makes non-resource industries uncompetitive, deepening economic dependence on raw materials.
Ultimately, the episode argues that natural wealth does not guarantee development. Only strong institutions, transparency, and fair governance can turn resources into shared prosperity. Without these, abundance continues to coexist with inequality and hardship.
