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Economics

The Resource Curse and Rentier State Behavior

Quick fact

Countries with abundant natural resources like oil, gas, or minerals have lower economic growth rates on average than resource-poor countries, even after controlling for geography, history, and education.

Why this is interesting

Imagine winning the lottery and ending up poorer than before. The resource curse is exactly that paradox—but on a national scale. Why do countries that strike oil, diamonds, or gold often become worse off?