Contrary to expectations, growth in some economies falls after an oil or gas discovery. Economists James Cust and David Mihalyi explore the reasons for such failures and outline what officials can do to prevent them. getAbstract recommends this notable research to bankers and investors considering doing business in resource-rich countries that may lack the political and governing vigor to make those discoveries a blessing and not a curse.
In this summary, you will learn
- What the term “presource curse” means,
- How countries often fail to live up to economic growth expectations after oil or gas discoveries, and
- What officials can do to avoid the presource curse.
About the Authors
James Cust is an economist at the World Bank. David Mihalyi is an economist at the Natural Resource Governance Institute.