Question

Countries that experience the resource curse are also more likely to experience what other result?

a) Economic prosperity
b) Political stability
c) Environmental sustainability
d) Corruption and conflict

Answer 1

Countries that experience the resource curse are more likely to experience corruption and conflict.

Step-by-step explanation:

Countries that experience the resource curse are more likely to experience corruption and conflict. The resource curse refers to the challenges faced by resource-rich countries in developing their economies and meeting domestic needs. These countries often rely on extractive industries, like oil production, to fund public expenditures. However, the large profits generated by these industries can lead to opportunities for government corruption, political conflict, and even authoritarianism. The lack of public scrutiny in resource-rich countries also contributes to the likelihood of corruption.

These issues can impede economic growth and exacerbate poverty, despite the abundance of natural resources. However, there are ways to mitigate the resource curse, such as implementing transparent revenue management systems and investing in diversification of the economy. Addressing the challenges posed by the resource curse is crucial for promoting sustainable development in countries with abundant resources.