Resource Curse
Paradox of Plenty · Poverty Paradox
The phenomenon of the seeming paradox that countries and regions with an abundance of natural resources (such as fossil fuels and certain minerals) tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.
Origin
The term was coined by economist Richard Auty in his 1993 book Sustaining Development in Mineral Economies: The Resource Curse Thesis. Auty examined how resource-rich countries like Sierra Leone, Nigeria, Afghanistan, and Bolivia experienced lower economic growth than resource-poor nations. Though Auty formalized the concept, the underlying paradox was observed as early as 1711 in The Spectator, demonstrating the long-recognized tension between natural wealth and economic development.