Natural resource curse
Also called: Resource curse, Paradox of plenty · Topic: Natural Resources: Classification, Planning and Sustainable Use · NCERT: Class 8, Ch 1 "Natural Resources and Their Use"
Meaning
The natural resource curse, also called the "paradox of plenty", is the pattern where some resource-rich places grow more slowly than places with fewer resources. There are several reasons. Such places often export raw materials without building industries that add value. They suffer from "Dutch disease", where a stronger currency hurts other exports. Prices swing up and down, governance is weak, and conflict breaks out, as in Congo and Nigeria. Norway and Botswana avoided the curse.
Example
The mineral belt of Jharkhand, Odisha and Chhattisgarh, in eastern India, holds rich coal and iron ore, yet it remains among India's poorest areas. One response is the District Mineral Foundations (set up under the MMDR Amendment 2015). They spend mining money on the welfare of mining areas.
Don't confuse with
- Uneven distribution of resources: this only describes where resources are found. The curse is about resource wealth failing to bring development.