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Resource Curse Essay. 1246 Words 5 Pages. Show More.. Some scholars believe that the Resource Curse is due to poor institutions and government, which can be traced all the way back to the slave trade and colonial rule. Seven European powers ruled over Africa by the 1900s.
In the formulation of Thomas Friedman, a columnist for the New York Times, the resource curse is, The way a dependence on natural resources always skews a country’s politics and investment and educational priorities, so that everything revolves around who controls the oil tap and who gets how much from it—not how to compete, innovate, and produce real products for real markets (Friedman.
After 2001, the resource curse literature incorporated and extended the works of an Icelandic economist, Thorvaldur Gylfason (Gylfason, 2001, Gylfason, 2006, Gylfason and Zoega, 2006).Gylfason focused attention on broader channels through which natural resource dependence could be affecting sustained economic growth: savings, investment and human capital formation.
Why Natural Resources Are a Curse on Developing Countries and How to Fix It. Stewart M. Patrick.. could give developing countries a fighting chance to ward off the resource curse.
The resource curse is disastrous, and causes a lot of harm and loses to property and life. Thus, it is because of reasons that the nations do not support the natural resource related conflicts that result in the curse situation. The natural resource curse can be avoided if only the country takes steps towards preventive measures.
Effects Of The Resource Curse. There are numerous effects of the resource curse. These include; Dutch disease and civil war. Dutch disease: This is a phrase used to refer to the challenges and adversities that Netherlands went through when it discovered North Sea gas.The result was stronger Dutch currency, poor performance of other sectors and industries, and volatility of commodity prices.
According to the resource curse thesis (RCT) of the 1990s, a strand of development discourse informed by neoliberal development economics, natural resource-rich developing countries are cursed by their natural resources abundance, particularly minerals and petroleum. Based on comparative statistics collected from the 1970s to the 1990s, the resource curse theorists claim that natural resources.