Resource Management and Economic Outcomes

The video challenges the notion that natural resources inherently lead to national wealth. It introduces the concept of the 'resource curse' or 'Dutch disease,' where resource-rich countries often experience economic stagnation. Through case studies of countries like Saudi Arabia, Venezuela, Norway, and Botswana, the video explores how governance and political structures influence the economic outcomes of resource wealth. It concludes by emphasizing the importance of strong democratic institutions in managing natural resources effectively.

What is a common misconception about countries with abundant natural resources?

• They lack industrial sectors.

• They have strong democratic institutions.

• They are always wealthy.

• They have high levels of education.

What phenomenon describes the negative impact of natural resources on a country's economy?

• Industrial Decline

• Resource Boom

• Dutch Disease

• Economic Miracle

How did the discovery of natural gas affect the Netherlands' economy?

• It improved the country's education system.

• It caused a decrease in public spending.

• It led to a decline in the industrial workforce.

• It boosted the manufacturing sector.

What is one effect of currency appreciation due to natural resource exports?

• Improved industrial output

• Increased foreign investment in industry

• Higher costs for local goods abroad

• Decreased government spending

Why is Spain mentioned in the context of the Dutch disease?

• It has a high level of school dropouts.

• It has a strong manufacturing sector.

• It exports a lot of natural gas.

• It relies heavily on tourism.

What distinguishes Norway from other resource-rich countries?

• It has a declining economy.

• It effectively manages its resources.

• It lacks democratic institutions.

• It has a high level of corruption.

How has Botswana managed to avoid the resource curse?

• By avoiding international trade

• By having a high corruption index

• By maintaining strong governance

• By relying on oil exports

What is a major political issue associated with the resource curse?

• Centralization of power

• Increased democratic participation

• Improved economic equality

• Enhanced public services

What is a common outcome in countries with abundant resources and poor governance?

• Economic prosperity for all

• Increased innovation

• Strong democratic institutions

• Wealth for the political elite

What is a significant cause of poverty in resource-rich African countries?

• High levels of education

• Corruption and poor governance

• Strong democratic governance

• Lack of natural resources