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A comment on Paradox of Plenty. Parent comment
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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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.