>[!abstract] >Dutch disease is an economic condition in which a boom in natural resource revenues (such as oil or gas exports) causes currency appreciation that undermines other tradable sectors, especially manufacturing and agriculture. The stronger currency makes non-resource exports less competitive internationally, while labor and capital shift toward the booming resource sector, hollowing out economic diversity. Coined after the Netherlands’ experience with North Sea gas in the 1960s–70s, the concept highlights how resource windfalls can unintentionally weaken long-term growth by distorting the structure of an economy unless mitigated through prudent policy. >[!related] >- **North** (upstream): — >- **West** (similar): [[Resource curse]] >- **East** (different): — >- **South** (downstream): —