The paradox of plenty

"The resource curse (also known as the paradox of plenty) refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources."


I've heard about this concept just last week after running for a cab like crazy cuz we were late for my room-mate's presentation on this issue. I have to admit that the idea was not new to me, since I've been repeatedly stunned by the contrast between the developing and developed countries in terms of economy and human rights record. However, a different contrast shocked me even more and that is the contrast between a country's status/image and the richness of resources they have been blessed with. For example a low-class country such as Guinea has in its posession over 60% of the world's resources of bauxite, the main aluminium ore. The same pattern can easily be found and many countries in SubSaharan Africa and generally, in all war-torn regions. It is amazing to witness what a dreadful effect a paranoid ultra-selfish dictatorial leadership can have on a country or how the least developed are taken advantage off by multi-national corporations. See Brazil whose Amazonian forest has been cleared severely by such companies originating from more developed countries. Now it's asking for funds to reforest, but who's goind to listen? Another factor is obviously corruption. And if you add some civil war following  Sudan's model of Darfur, you've got all the necessary ingredients to transform a huge potential into a semi-failed state.