This is dangerous as if the resource is not worth, or if it is not managed well, the economy will collapse. Moreover, these other industries are equally beneficial for growth of the nation hence a country that concentrates its factors of production on the natural resource suffers the curse. Moreover, the natural resources that are discovered can be depleted. Therefore, a country or an economy dependent on the resource and the resource become depleted suffers a lot. The country collapses immediately, hence the resource curse.

The most significant and prevalent reason why the country with plenty of natural resource will not prosper is conflicts. Conflicts among the ethnic groups, religious divisions, and the government and rebel groups are mostly driven and funded by the natural resource (Vatansever 21). Issues of corruption, weak institutions and power hunger crop from the desire to control the natural resource. This is the reason why...
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