Resource Curse

Resource curse

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The resource curse or paradox of plenty refers to the paradox that countries with an abundance of natural resources tend to have less economic growth than countries without these natural resources. This may happen for many different reasons, including a decline in the competitiveness of other economic sectors (caused by appreciation of the real exchange rate as resource revenues enter an economy); volatility of revenues from the natural resource sector, and government mismanagement, or political corruption, provoked by the inflows of easy windfalls from the resource sector.
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http://en.wikipedia.org/wiki/Resource_curse

Resource curse