Search for other papers by Mr. Shanaka J Peiris in
Current site
Google Scholar
Search for other papers by Mr. Jean A. P. Clément in
Current site
Google Scholar
Abstract
Attempts to explain the relationship between a country’s natural resource endowments and its economic performance have generated a significant body of literature highlighting the risk that resource abundance may not only have an adverse impact on growth but may also, in many cases, contribute to corruption and social unrest. The so-called resource curse is not inevitable, however. While there are many examples of poor management of resource wealth, a range of countries (including Botswana, Canada, Chile, Malaysia, and Norway) appear to have avoided the resource curse through prudent and transparent resource management practices. Thus, the key question for a large number of countries is how they can turn their abundant resources into a blessing, rather than a curse, using them to set off a virtuous cycle of economic growth, development, and poverty reduction.
International Monetary Fund Copyright © 2010-2025. All Rights Reserved.