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The "Resource Curse"

Summary:“The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (like fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.” - WikipediaThe term “resource curse” was initially developed to explain the observed negative correlation between abundant resources and economic growth from 1970 - 1989. However since 1989, there appears to be no such negative correlation. Similarly there is no correlation with inflation or income inequality.However the strong negative correlation between abundant resources and democracy has persisted. Natural resources appear to be more easily controlled by autocrats and their cronies than other forms of national wealth.

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