Recently, the term "resource curse" was frequently making in news. What does the term "resource course" signifies?
As per natural phenomenon, a country that has abundant natural resources does not need to import as many raw materials, and has opportunity to increase its economic strength through income gained from resources export. But, the "resource curse" is a paradox according to which a country with higher natural resources has less economic growth. The reason lies in the fact that wealth generated from natural resources not distributed adequately to the local people, which in turns leads to social conflict. Such phenomenon is very much at work in countries such as Nigeria and other African and Middle East countries, where the wealth of natural resources has not empowered the local communities, but has fuelled social conflict instead. Conflict brews among agents of world powers that buy oil, the ruling elites who profit from selling it, and the local population that struggles to maintain control over these resources.
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