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SSC Geography QUESTION #6341
Question 1
The 'resource curse' or 'paradox of plenty' suggests that countries rich in natural resources often:
  • Experience slower economic growth and worse development outcomes than resource-poor countries✔️
  • Benefit economically but face environmental degradation
  • Attract excessive foreign investment causing inflation
  • Develop manufacturing sectors more rapidly
Correct Answer Explanation
The resource curse paradox observes that resource-rich countries often have slower growth, more corruption, and worse governance. Mechanisms include Dutch disease (appreciating currency harming other exports), rent-seeking, weak institutions, and conflict over resource revenues.