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Re:Paradox of Plenty by _nalply on Monday April 15, 2024 @03:49AM (#40037921)
True but a bit too simple I think.

In the article the Dutch disease is mentioned. It has three effects:

1. It makes the other exports less competitive (why bother with abundant resources?)

2. Imports financed by natural resources revenues increase, appreciating the currency (a double whammy for exports)

3. This causes a shift away from manufacture and similar industries rendering the economy more dependent on natural resources

I also think natural resources can be grabbed by individuals more easily than the skilfulness of a people leading to higher income inequality.

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