The resource curse, also known as the paradox of plenty or the poverty paradox, is the hypothesis that countries with an abundance of natural resources (such as fossil fuels and certain minerals) have lower economic growth, lower rates of democracy, or poorer development outcomes than countries with fewer natural resources. There are many theories and much academic debate about the reasons for and exceptions to the adverse outcomes. Most experts believe the resource curse is not universal or inevitable but affects certain types of countries or regions under certain conditions. As of at least 2023, there is no academic consensus on the effect of resource abundance on economic development.
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👉 Resource curse in the context of Jharkhand
Jharkhand (Hindi: Jhārkhaṇḍ, pronounced [d͡ʒʱaːɾkʰəɳɖ] ; lit. 'the land of forest ') is a landlocked state in eastern India. The state shares borders with the states of West Bengal to the east, Chhattisgarh to the west, Uttar Pradesh to the northwest, Bihar to the north and Odisha to the south. It is the 15th largest state by area, and the 14th largest by population. Hindi is the official language of the state. The city of Ranchi is its capital, and Dumka its sub-capital. The state is known for its waterfalls, hills and holy places; Baidyanath Dham, Parasnath, Dewri and Rajrappa are major religious sites. Jharkhand is primarily rural, with about 24% of its population living in cities as of 2011.
Jharkhand suffers from what is sometimes termed a resource curse: it accounts for more than 40% of India's mineral production but 39.1% of its population is below the poverty line and 19.6% of children under five years of age are malnourished.
In this Dossier
Resource curse in the context of Resource consumption
Resource consumption is about the consumption of non-renewable, or less often, renewable resources. Specifically, it may refer to:
- water consumption
- energy consumption
- natural gas consumption/gas depletion
- oil consumption/oil depletion
- logging/deforestation
- fishing/overfishing
- land use/land loss or
- resource depletion and
- general exploitation and associated environmental degradation
Measures of resource consumption are resource intensity and resource efficiency. Industrialization and globalized markets have increased the tendency for overconsumption of resources. The resource consumption rate of a nation does not usually correspond with the primary resource availability, this is called resource curse.
Resource curse in the context of Oil boom
An oil boom is a period of large inflow of income as a result of high global oil prices or large oil production in an economy. Generally, this short period initially brings economic benefits, in terms of increased GDP growth, but might later lead to a resource curse.