Why Countries Rich in Resources End Up Poor
According to reports, the new discoveries of natural resources in African countries like Ghana Uganda, Tanzania or Mozambique can either be a blessing or a curse.
Article written by guest writer Rin Mitchell
What’s the Latest Development?
In several African countries new natural resources have turned up, but experts believe it doesn't necessarily mean they will be less poorer than before the discovery of the resources. It can be a blessing or a curse. Countries that are rich in natural resources and revenue rely on them to finance education, health care, development and redistribution. Yet, they grow more slowly and with “great inequality.” Three of the well-known curses are: strong currencies, which impede other imports, rise in unemployment due to resource extraction and volatile prices of resources that cause instability. “Moreover, resource-rich countries often do not pursue sustainable growth strategies. They fail to recognize that if they do not reinvest their resource wealth into productive investments above ground, they are actually becoming poorer.”
What’s the Big Idea?
To be rich in natural resources can cause problems politically and economically, unless the right measures are taken. Some ways to avoid such curses are lowering the exchange rate, stabilizing funds, taking the necessary precautions with resource revenue investments, ban borrowing and allowing citizens to see the money coming in and going out. “Newly enriched countries need to take several more steps in order to increase the likelihood of a ‘resource blessing.’”
New research links urban planning and political polarization.
- Canadian researchers find that excessive reliance on cars changes political views.
- Decades of car-centric urban planning normalized unsustainable lifestyles.
- People who prefer personal comfort elect politicians who represent such views.
Progressive America would be half as big, but twice as populated as its conservative twin.
- America's two political tribes have consolidated into 'red' and 'blue' nations, with seemingly irreconcilable differences.
- Perhaps the best way to stop the infighting is to go for a divorce and give the two nations a country each
- Based on the UN's partition plan for Israel/Palestine, this proposal provides territorial contiguity and sea access to both 'red' and 'blue' America
Science and the squishiness of the human mind. The joys of wearing whatever the hell you want, and so much more.
- Why can't we have a human-sized cat tree?
- What would happen if you got a spoonful of a neutron star?
- Why do we insist on dividing our wonderfully complex selves into boring little boxes
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.