PrintTwo features distinguish natural resources. Natural resources are non-renewable and their exploitation can be performed almost independently from the productive development of the country where they are located.
The resource curse is a condition in which a country is not able to obtain benefits from its abundant natural resources. Indeed, this abundance can cause the opposite effect on growth, i.e. the country could experiment some decrease or negative effect in its economy, institutions and society.
The resource curse is exacerbated in those countries with poor institutional development.
Natural resources that are involved in resource curse are, for instance, oil; minerals like silver, copper, gold, and iron; and marine resources that are non- renewable.
Dutch disease is a phenomenon by which the inflow of foreign exchange to a country tends to weaken its production structure rather than benefit them.
In the international experience, there are countries where the resource curse has been felt with greater emphasis. Examples of these countries are Venezuela and Nigeria. By contrast, there are countries such as Chile and Norway, where the abundance of natural resources has been the source of development.
Peru is an example of a country where there has been many periods of the resource curse. However, the measures taken by governments in the past twenty years have enabled the country to redirect its production structure and stabilize its economy.
For instance, the resources obtained by the State due to the mining activity, is that they are the sectors of education, health, and the development of infrastructure that are being prioritized.
It also important to note the participation of foreign investors in the development of the mining activity which brings to the Peruvian economy not only more taxes and royalties but better technologies.
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References
Aldave, I., & García-Peñalosa, C. (2009). Education, Corruption and the Natural Resource Curse. Banco Central de Reserva del Perú, Lima.
Arellano-Yanguas, J. (2008). A Thoroughly Modern Resource Curse? The New Natural Resource Policy Agenda and the Mining Revival in Peru. Institute of Development Studies. United Kingdom: Institute of Development Studies.
Busse , M., & Gröning, S. (2013). The resource curse revisited: governance and natural resources. Public Choice(154), 1-20.
Egoávil, S. B. (Diciembre de 2011). The Resource Curse and Peru: A Potential Threat for the Future? Tesis. San Francisco, Estados Unidos.
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Mehlum, H., Moene, K., & Torvik, R. (2005). Cursed by resources or institutions.
Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the Resource Curse. The Economic Journal, 1-20.
Rossi, C. (2011). Oil Wealth and the Resource Curse in Venezuela. International Association for Energy Economics, 11-15.
Sinnott, E., Nash, J., & De la Torre, A. (2010). Natural Resources in Latin America and The Caribbean. Beyond Booms and Busts? Washington: The International Bank for Reconstruction and Development / The World Bank.