Summary of Natural Resources and Their Use

Flashcard #1Term: What is the natural resource curse?

Definition: The natural resource curse is the paradox that countries with an abundance of natural resources often experience less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Flashcard #2Term: What are some effects of the natural resource curse?

Definition: Effects can include economic volatility, lack of diversification, corruption, weak governance, and conflict over resource control.

Flashcard #3Term: What is the 'Dutch disease'?

Definition: Dutch disease is an economic phenomenon where an increase in revenues from natural resources leads to a decline in other sectors, such as manufacturing, due to currency appreciation.

Flashcard #4Term: How can countries mitigate the natural resource curse?

Definition: Countries can mitigate the curse by implementing sound fiscal policies, investing in education and infrastructure, and promoting transparency and accountability in resource management.