The resource curse – its origin and current evidence

For many countries with large reserves of natural resources, this wealth is often seen as an obstacle to economic growth. The theory of what is known as the “resource curse” precisely describes this phenomenon. Despite substantial revenues from sales, many countries rich in raw materials have comparatively low growth rates due to a lack of investment in other economic sectors, among other things. Yet there are also nations that are able to use natural resources and grow economically.

On the occasion of new findings from research, “Development Policy in Brief” explains which factors are decisive for the overall effect of resource wealth on economic growth and what the resulting consequences are for development cooperation.

The resource curse – its origin and current evidence(PDF, 119 KB, accessible)