The “resource curse” theory has been an exciting topic of modern economics. This theory examines the distortive effect of natural resources and the revenues they generate. This concept states that countries rich in certain resources tend to regard these revenues as the only means of development and the rigid focus on the exploitation of these resources as well as the lack of diversification lead to self-exploitation and this rather suppresses than assists the long-term social progress and material enrichment of the country’s citizens.
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(Ministry for National Economy)