Prudent governance is key to exploiting natural resources to the benefit of all, with an effective civil society ensuring better government oversight and strong change readiness.
The ‘resource curse’1 is a widely recognized phenomenon whereby resource-endowed countries not only fail to enjoy the benefits, but worse, suffer slower growth and greater conflict and instability than economies lacking such riches. Natural resources should bring prosperity and harmony to countries, yet the reverse is often true.
The CRI largely confirms the challenge of possessing natural resources, despite the fact that many resource-rich countries have a relatively high per capita income, which is otherwise associated with high change readiness levels. The more dependent an economy ison revenue from its commodity resources, the more likely, on average, that nation is to have a lower CRI ranking.
1See for example “Are natural resources a blessing or a curse for international development”, The Guardian, 25th October 2012.
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