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 most richly endowed nations have had years of war and turmoil that have repeatedly pulled the nation down economically. Some groups, especially the rebel groups, once they gain access to the natural resource, they use it to buy warfare items so as to keep control. This is dangerous and disastrous as the central nation is left with nothing. The curse begins from this point.
Some nations also foster the curse as they support the wars due to vested interests (Vatansever 37). The persons in control, who are led by their desires to gain more wealth for themselves, fund the wars causing distress. Moreover, nations from outside, may also have an interest in the commodity, hence favoring the wars and conflicts so as to benefit themselves. These nations instead of helping, they fire the curse upon the poor nation.
However, countries that realize the need to keep the peace and exploit the commodity effectively are always opposed to the conflicts (Vatansever 97). This is so, especially for countries that have experienced the curse and would not wish to see another nation go down that road. The resource curse is disastrous, and causes a lot of harm and loses to property and life. Thus, it is because of reasons that the nations do not support the natural resource related conflicts that result in the curse situation.
The natural resource curse can be avoided if only the country takes steps towards preventive measures. The nations that put in place good governance and foster transparent dealings with the natural resources easily avoid the curse of the natural resources (Vatansever 116). Strong disclosure and anti-corruption laws help keep those with wrong motives to stay at bay. Putting in place trade and economic policies that promote diversification of economies is also useful. It creates use for all other resources other than the natural resource. Moreover, setting the exploitation rules and giving contracts in a clean and transparent manner helps keep the satisfaction of every party hence they easily avoid the natural resource curse.
The natural resource that a country is blessed with can easily become a curse if not well managed. The effects of the curse are too costly especially on the life and living standards of the people and the nation's economy. Hence it should be avoided by all means.
Haber, Stephen, and Victor Menaldo. "Do Natural Resources Fuel Authoritarianism? A
Reappraisal of the Resource Curse." The American Political Science Review 105.1