Are natural resources a gift or a curse? For many countries, they’re both. On one hand, resources like oil, gas, minerals, and forests bring immense economic potential. Nations rich in these resources can boost their GDP, create jobs, and improve infrastructure by tapping into natural wealth. Take Norway, for example—it has harnessed its oil wealth responsibly, investing in a sovereign wealth fund that supports social welfare and future growth. Saudi Arabia has also very much relied on its oil industry making booming revenue of over $200 billion while also focusing on different sectors of entertainment, tourism, and diversity.
But resources can also be a double-edged sword. Known as the “resource curse,” this phenomenon happens when reliance on natural resources actually stifles broader economic development, causes environmental degradation, and sparks corruption. Countries like Venezuela have seen economic instability and inflation as their economies became too dependent on oil, without diversification to protect against price drops. Angola has also been a part of this tragic curse, around 75% of its revenue comes from the petroleum industry. Its economic aspects are extremely vulnerable to any major change in oil prices.
For resources to be a boon, countries need balanced policies, strong institutions, and a focus on sustainability. Managed well, natural resources can fuel growth and social development. Mismanaged, they can lead to stagnation and inequality. In the end, whether resources are a bane or a boon depends on how they’re handled—and whether leaders prioritize long-term benefits over short-term gains.