>[!abstract] >The resource curse is the paradox that countries rich in natural resources often experience slower economic growth, weaker development, and greater political instability than resource-poor countries. Resource wealth can generate rent-seeking, corruption, and conflict over control, while also creating "Dutch disease" effects that undermine other sectors by inflating currency values and reducing competitiveness. Heavy reliance on resource revenues may weaken institutions, discourage diversification, and expose economies to price volatility. The concept underscores how abundance, without strong governance and fiscal management, can become a liability rather than a blessing. >[!related] >- **North** (upstream): — >- **West** (similar): [[Dutch disease]] >- **East** (different): — >- **South** (downstream): —