How did the resource curse affect Africa?
This phenomenon is called the resource curse, and it shows that most countries that are rich in natural resources have markedly reduced economic growth and development, and it shows that the wealth of natural resources adversely affects their economies, although it is intuitively expected to be the opposite i.e. that …
Why does land grabbing happen in Africa?
Other factors include: an increase or desired increase in the production of biofuels; limited resources in some countries, particularly water shortages in regions like the Middle East; and an overall lack of confidence in the international food market.
Why was there a rush to secure land in Africa and around the world?
Growing demand for food, feed, fuels and fibre, increased price volatility, combined with a shrinking resource base, and liberalisation of trade and investment regimes, are among factors causing increased commercial pressures on land and fuelling a new global rush for land.
What African countries have the resource curse?
Countries with abundant natural resources – gold, diamonds, crude oil– often fail to transform that advantage into favourable development outcomes. This is known as the natural resource curse. Countries like Nigeria, Angola and the Democratic Republic of Congo are often cited as examples.
Why is the resource curse a problem?
“Countries with non- renewable resource wealth face both an opportunity and a challenge. When used well, these resources can create greater prosperity for current and future generations; used poorly, or squandered, they can cause economic instability, social conflict, and lasting environmental damage.”
Why is land grabbing a problem?
Traditional forms of agriculture are lost, while large-scale industrial farming causes environmental degradation and water scarcity. Most importantly, people are driven off their lands and lose access to resources. Those affected generally have no voice to demand justice.
What are the negative effects of land grabbing?
In addition to environmental concerns, land grabs also have social ramifications. Land grabs expose poor people to hunger, violence and the threat of a lifetime in poverty. Furthermore, land grabs result in the displacement of local people, which is detrimental to their human rights.
What causes resource curse?
The resource curse mainly occurs when a country begins to focus all of its production means on a single industry, such as mining or oil production, and neglects investment in other major sectors. At times, the resource curse can also result from government corruption.
How do you stop the resource curse?
Untangling the link between violence and resource wealth
- Large windfalls of politically controlled natural resource revenues encourage violence.
- Elected local governments are more successful than appointed governments in discouraging violence.
Who came up with the resource curse?
economist Richard Auty
The British economist Richard Auty coined the term “resource curse” in a 1993 book investigating why resource-rich countries under-performed other developing economies.
Which country is the greatest victim to the resource curse?
Real World Examples of the Resource Curse Angola’s economy is extremely vulnerable to any large or sustained decline in the price of oil, since virtually all of the nation’s wealth is reliant on this one sector. In this sense, Angola may have been “cursed” by its large oil reserves.