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Economics

The Resource Curse and Dutch Disease in Commodity Economies

Quick fact

Countries whose exports are dominated by oil or minerals have historically grown more slowly than resource-poor countries. For example, from 1965 to 1998, OPEC countries saw their GDP per capita grow by only 1.3% per year, while the rest of the developing world grew by 2.6% annually.

Why this is interesting

We often assume that striking oil or discovering rare minerals makes a country rich. But some of the world's most resource-rich nations are poorer than countries with far fewer natural gifts. How can treasure turn into a trap?