Why do countries with large endowments of natural resources face what is known as a "resource curse?"

Question

Quizplus · Accepted Answer

Countries with large endowments of natural resources often become reliant on those resources as their main source of income, which can lead to a lack of investment in other areas such as human capital and infrastructure. This can result in a failure to diversify the economy and a vulnerability to fluctuations in resource prices. Additionally, resource extraction can lead to corruption and inequality, further hindering development.

Why Do Countries with Large Endowments of Natural Resources Face