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Economics

The Political Economy of Rentier States and Resource Curse Dynamics

Quick fact

Countries like Nigeria and Venezuela, despite enormous oil reserves, have seen lower GDP per capita growth and higher poverty rates than many resource-poor nations. The 'resource curse' is a well-documented paradox: resource-rich states often have weaker economic performance, more corruption, and less democracy.

Why this is interesting

We often assume that striking oil or abundant minerals brings prosperity—but many of the world's richest nations in resources are among the poorest in development. Why do countries with the most 'natural wealth' often end up with the worst outcomes?