KROLL | Our Hand in the Resource Curse

The resource curse is as tragic as it is predictable. Blinded by the allure of exorbitant wealth, nations rich in nonrenewable resources like bronze, oil and uranium mismanage their economies, winding up with stagnant growth or financial collapse. Much of this pattern can be attributed to two behaviors. First, governments overemphasize the production of their most valuable resources, often creating economies that rely entirely on global demand for a small bundle of goods. If demand falls, the economy suffers.