The Resource Curse: A Tale of Prosperity and Instability in Resource-Rich Countries

In some cases, natural resources can be a blessing for countries, but in others, they can lead to political instability and economic hardship. This phenomenon is known as the resource curse. While resource-rich countries tend to have more easily earned commodity money, this can often lead to autocratic regimes that use it to maintain power and cater to certain groups.

This trend is not absolute, however. There are countries like Norway, Australia, Canada, Chile, and Botswana that have shown that resource wealth can lead to prosperity and democracy. However, there are also examples of countries like Iran and Russia where a small elite benefits from the wealth generated by natural resources while the general population struggles. Both of these countries face international sanctions and economic challenges despite their resource wealth.

The gap between the elite and the rest of the population in these countries is significant, leading to social and economic issues. Resource-rich countries often struggle with autocratic leadership, low economic growth, and inequality. The dependence on raw materials can hinder economic development and lead to conflicts as seen in Libya, Angola, and Sudan. To make the exceptions the rule