Natural Resources: Neither Curse nor Destiny

Kokko, Ari;
Czelusta, Jesse;
Jayasuriya, Shamila A.;
Blomström, Magnus;
Xu, L. Colin;
Ludema, Rodney;
Martin, Will;
Cuddington, John T.;
Wright, Gavin
Dec 2006
Maloney, William;Lederman, Daniel
'Natural Resources: Neither Course nor Destiny' brings together a variety of analytical perspectives, ranging from econometric analyses of economic growth to historical studies of successful development experiences in countries with abundant natural resources. The evidence suggests that natural resources are neither a curse nor destiny. Natural resources can actually spur economic development when combined with the accumulation of knowledge for economic innovation. Furthermore, natural resource abundance need not be the only determinant of the structure of trade in developing countries. In fact, the accumulation of knowledge, infrastructure, and the quality of governance all seem to determine not only what countries produce and export, but also how firms and workers produce any good. This publication belongs to the Latin American Development Forum Series (LADF), sponsored by the Inter-American Development Bank, the United Nations Economic Commission for Latin America and the Caribbean, and the World Bank.