Resource Curse
Definition
The resource curse, also known as the paradox of plenty, describes the phenomenon whereby countries rich in natural resources, particularly non-renewable resources like oil and minerals, tend to experience slower economic growth, weaker governance, and greater inequality than countries with fewer natural resources.
Context
Oman’s policymakers are acutely aware of the resource curse risks associated with oil dependence. Vision 2040 explicitly addresses these risks through diversification, institutional reform, and investments in human capital designed to ensure that resource wealth supports rather than inhibits long-term development.
Example
Countries like Nigeria and Venezuela illustrate the resource curse, where oil wealth has been associated with corruption, underinvestment in education, and economic volatility, outcomes Oman actively seeks to avoid through proactive governance.