resource curse

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Introduction
This field paper will discuss the controversy on the existence of ‘resource curse’. Resource curse is an economic paradox which states that countries and regions having an abundant base of natural resources, especially non-renewable and point-sources are likely to have worse performance in economic development and economic growth. This term was first raised in the book ‘Sustaining Development in Mineral Economies: The Resource Curse Thesis’ (Auty, 1993). He describe in this book that country with rich natural resources, like Bolivia, Peru and others, failed to take advantage of this preponderance. Contrarily, they have lower economic growth and poorer disciplined development policies. In one word, they perform worse than less endowed countries. (Auty, 1993) It is still controversial in the academic world that if resource curse exits or not. This paper will summarize the literatures into three sectors: resource curse exist, resource curse does not exist, and resource curse exist under certain conditions.
Controversy on Resource Curse
1. Resource Curse Exist
Auty (199...

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