Africa’s V — Valuable Resources
Are natural resources a curse or a blessing to African nations?
February 23, 2005
Mostly natural resources have the same effect on a national economy as a drug. They are "easy" sources of income to capture, especially compared to other economic activities, such as the agricultural or manufacturing sectors.
Such easy money more often than not breeds corruption. Why? Because the cash flow is usually wholly, or partially, controlled by government officials.
The world's most successful development stories of the past century are found in countries which are actually lacking in "valuable" natural resources: Japan, Korea, Hong Kong, Taiwan, Singapore.
There, the lack of natural resources — as well as external military threats — had a powerful impact on advancing the national economic effort.
Founder and CEO, Global Business School Network Guy Pfeffermann is the Founder and CEO of the Global Business School Network. He was the Director of the Economics Department and Chief Economist for the International Finance Corporation from 1988-2003. Since 2003, he has served as the Director of the Global Business School Network of International Finance […]