Sustainable finance
Resource Curse
Definition
The resource curse is the observed tendency of countries with abundant non-renewable natural resources — especially oil and minerals — to experience slower economic growth, weaker diversification, more corruption, less democracy and more conflict than comparable resource-poor countries. Documented in Richard Auty's "paradox of plenty" work and large statistical literatures, it operates through Dutch disease, rent-seeking, price volatility and rentier-state dynamics.
References
This reference provides supporting context for how “Resource Curse” is defined and used.
Source imported for editorial provenance.
Overview
How it is used
The term structures resource governance research and reform (EITI transparency, NRGI guidance), country risk analysis, and debates on managing critical-mineral demand justly.
Why it matters
The resource curse warns that geology is not economics: without governance, mineral wealth finances dysfunction — a warning directly relevant to the transition minerals boom.