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The resource curse, also known as the paradox of plenty or the poverty paradox, is the hypothesis that countries with an abundance of natural resources (such as fossil fuels and certain minerals) have lower economic growth, lower rates of democracy, or poorer development outcomes than countries with fewer natural resources. [1]
Natural resources can be a substantial part of a country's wealth; [7] however, a sudden inflow of money caused by a resource extraction boom can create social problems including inflation harming other industries ("Dutch disease") and corruption, leading to inequality and underdevelopment, this is known as the "resource curse".
Advancing technology: Increasing technology sophistication enables faster rates of natural resource extraction. For example, in the past, it could take a long time to log a small amount of trees using only saws. Due to better technology, the rates of deforestation have greatly increased. [6]
The resource consumption rate of a nation does not usually correspond with the primary resource availability, this is called resource curse. Unsustainable consumption by the steadily growing human population may lead to resource depletion and a shrinking of the earth's carrying capacity .
The resource curse is the paradoxical lack of growth in countries with strong natural resources. Dutch disease is one mechanism which might contribute to this lack of growth. I think this article does a good job of illustrating the differences. Dutch disease is listed as one of three explanations for the resource curse.--
The natural environment, commonly referred to simply as the environment, includes all living and non-living things occurring naturally on Earth.. The natural environment includes complete ecological units that function as natural systems without massive human intervention, including all vegetation, animals, microorganisms, soil, rocks, atmosphere and natural phenomena that occur within their ...
Example of extractivism: open-pit mining in Russia Example of European extractivism: a quarry in the Apuan Alps, Italy. No Cav is an anti-extractivism movement fighting against this activity. Extractivism is the removal of natural resources particularly for export with minimal processing.
A resource boom affects this economy in two ways: In the "resource movement effect", the resource boom increases demand for labor, which causes production to shift toward the booming sector, away from the lagging sector. This shift in labor from the lagging sector to the booming sector is called direct deindustrialization.