Which of the following is an example of the impact of the "resource curse" on economic development?
A)Botswana's diamond wealth provided the government with important revenue to focus on the provision of public goods,like economic infrastructure.
B)Zambia's copper wealth gave the government little incentive to focus on the productive capacity of the populace,including improving education and public health.
C)Revenue from petroleum exports in Kuwait has spurred international conflict.
D)Democratic institutions in Namibia encouraged the equitable distribution of diamond revenues in society.

Question

Quizplus · Accepted Answer

The "resource curse" refers to the phenomenon where countries rich in natural resources, such as oil or minerals, experience slower economic growth and development. Option B describes how Zambia's copper wealth did not incentivize the government to focus on developing the productive capacity of its people or investing in public goods, instead leading to economic stagnation. This is a classic example of the resource curse. Option A describes how Botswana successfully managed its diamond wealth to promote economic development, while option D describes how Namibia used democratic institutions to equitably distribute diamond revenues, both of which are examples of countries avoiding the resource curse. Option C describes the negative impact of petroleum exports but not necessarily how it affected the economic development of Kuwait.

Which of the Following Is an Example of the Impact