Thompson Rivers University

International Business
Sustainability, the “Resource Curse” (aka “Paradox of Plenty” & “Oil Curse”) & Dutch Disease

March 21, 2023

1. What are examples of “extraction industries”?

2. From a sustainable perspective, that “Poorer undeveloped nations are the fueling stations for
developing and developed nations” is exemplified by the resource curse phenomena. How does
the resource curse phenomena exemplify this statement (Maybe “Rita’s image” or the “statue”
from the sustainability ppts. can help you see this)?

3. Economic inequality. Generally speaking,

a) Which segments of the population are the wealthiest? Poorest?
b) How did these wealthy segments of the population acquire their wealth?
c) How does polarization of wealth contribute to social unrest and political instability?

4. Resource Curse.
a) Explain the “resource curse” phenomena.
b) Explain the term “Dutch disease” (and currency appreciation)
c) How is Dutch Disease different from, and related to, the resource curse?
d) Why are the “Resource curse” and “Dutch disease” detrimental to a country?

5. Name 5-6 countries are affected by the “resource curse”?

6. Using Papua New Guinea as an example, identify and explain 5 common characteristics of
countries with the resource curse?

7. What are the necessary actions for a government to take so a country is not a victim of the
“resource curse”?

As time permits, please briefly research and discuss:

1. What is currently happening in Papua New Guinea regarding this situation?
2. Is your home country a victim of the “resource curse”?
3. Discuss what additional information would further benefit your understanding of this topic?
4. Do you believe this information presented is partisan or non-partisan? Explain your answer.