Why do some countries stay poor despite having abundant natural resources?

[Fragrance1122]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

No investment:
Investors avoid the country due to weak laws and no property rights, so no new factories are built.

The solution:
A stable government and low corruption are needed to turn resources into prosperity.

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

[Exitoral]

From your topic. It's simple. Neocolonialism. colonisers never left. They just wore a different gown. Other factors might contribute. But the first and foremost of them all is Neocolonialism. Quote me if I am wrong.

[kingstep]

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

No country has just a single resource. If they are depending on just one resource, it gives a pointer to the fact that there's a leadership problem that they are facing. A group of locals that are big enough to be tagged a nation is capable of coming out from poverty if they get things right at leadership level. It becomes a great plus if there's abundance of natural resource and at such point, any failure that still happens goes straight to Sam's leadership as an institution.

Undermine leadership and you see your natural resource failing you even when others with lesser resources are doing better.

[freedomgo]

Bad governance does not make a country prosper, but hinders its country's long-term prosperity. And with that, stealing and taking advantage of the abundant natural resources for their own benefits is very common, leaving the next generation nothing to generate income because everything that are supposed to be for them are no longer there, because they have already been stolen by the current corrupt administration.

The best thing that we can do is to change the current administration and elect new politicians that have a genuine heart for the people and could sustain the rich natural resources that serves as the hope of the youth.

[PostQuantumBTC]

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

Which country do you think depends on one resources? What if the country do not have other resources? Or you mean the country should not depend on one thing? AI today and technology advancement are not natural resources.

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

A country in the world that we are now should not only depend on natural resources, but natural resources are blessings. If a country has one or more, they should not embezzle the money generated from mining the resources because it can later kill the progress of the resources mining in the country.

[BlackHatCoiner]

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

Strong property rights for regular citizens. When a central government has total, unchecked control over resource extraction, they have zero incentive to develop the broader economy. If those state revenues were openly tracked, and put into a sovereign wealth fund like Norway does, it'd be way better for regular citizens.

Poverty is primarily artificially created.

[Crypto_Timothy]

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

I think it starts with leadership that puts the country's interests ahead of personal gain because even countries with abundant resources can remain poor if the money is mismanaged or stolen and beyond that, there needs to be accountability, a clear long-term plan and investment in sectors outside natural resources so the economy isn't exposed to a single market. To me, natural resources don't make a country rich by themselves, it is the decisions people make about those resources that can elevate the country and if you choose to behave like my country did and sell the raw material only to import the refined one at a higher price, then the economy is also going to suffer.
You need the government to invest in the local economy, the citizen as well need to invest in the local economy, doing this will definitely boost the economy of the country.

[Coyster]

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

Revenue from these resources and other sources have to be put to good use, and since it is the government that is in charge of the state's resources and revenue, the citizens need to elect efficient leaders who can do the job in the right way.

That said, i know election is not always a solution, especially in countries were corruption has eaten deep into their system; the next leader basically continues from where their predecessor stopped. In such jurisdictions, a revolution might be the solution. I say so because you can come up with beautiful policies to solve the situation, but it's not ordinary citizens that formulate or implement policies for the nation, it is still the same government.

[Merit.s]

If only good leaders who have love and vision for the country would be elected, I believe that the country will have a stable government. Also, any person that steals public funds without carrying out the project assigned to him should be put to jail as a warning to the others in order for them not to embrace corruption.

Down here in my country, it's worse because only some few set of people are stealing and taking loans from other countries for their own benefit. Corruption destroys gradually.

[Yeesha]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

No investment:
Investors avoid the country due to weak laws and no property rights, so no new factories are built.

The solution:
A stable government and low corruption are needed to turn resources into prosperity.

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

The reason why some countries stay poor despite having abundant natural resources is due to poor management and lack of good utilisation. From my perspective things that are needed to turn natural resources into prosperity is good governance, professional workers, availability of infrastructure, provision of social services, social amenities and so on. Bad governance is one of the major things that is endangering ourselves and hindering the growth and development of our countries. Our leaders are only concern about their stability and focus on their own growth and development.I don't know for other countries but in my country, our natural resources has become foreign exchange, and being exported to other countries instead of allowing us to enjoy it for the growth and development of our great nation, I believe some countries export their natural resources too, but in a minimum rate, to ensure that the citizens also benefit from it. But the issue in my country is that they exports too many raw materials instead of processing those raw materials into finished goods.

[Royal Cap]

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

In my opinion natural resources themselves do not make a country rich but rather how those resources are managed is the real issue. Many countries have developed without having much resources, while many wealthy countries are still lagging behind. So not only having resources , but proper planning is also important. Another thing is that the income from resources should be used for the future.  If skilled manpower and small and large business opportunities are created, people will not depend on just one sector, I think investing in human skills in the long run creates the most valuable asset.

[Hamza2424]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

When you are in power and you know you can control the resources of a place, you become greedy. You extract from the earth what is valuable, you find buyers, and you sell. People sell until they get caught, and then they give them a commission, and until the whole network gets caught, they turn the project into the future of the country. This does not change anything. They might allocate some part of the profit to the region's development so the locals would shut up, but they will keep the big part for themselves.

That's because they do not understand what they are doing when they are happy, their stomachs are full, and they have everything they need to survive.

Human nature is very complex, and people who let their thoughts take over their morals always cost a huge fortune to the country. Corruption is just the start of it, because next is giving special protocols to big investors even if they are child killers.

[Cheema02]

Bad governance does not make a country prosper, but hinders its country's long-term prosperity. And with that, stealing and taking advantage of the abundant natural resources for their own benefits is very common, leaving the next generation nothing to generate income because everything that are supposed to be for them are no longer there, because they have already been stolen by the current corrupt administration.

The best thing that we can do is to change the current administration and elect new politicians that have a genuine heart for the people and could sustain the rich natural resources that serves as the hope of the youth.

If the government of any country is bad then ultimately it's going down day by day instead of growing. The reason is that bad government comes due to corrupt staff and if leaders are currupt then they prefer their own interests and also misuses the countries important resources. So when they focused on wealth collection instead to give relief to public then the natural and useful resources of next generations are used by their own benefits. So as result due to curruption people starts to lose their trust on government and it's also decrease the financial stability and economic growth of that country. So the best solution is to choosing the right person for leadership and with good leadership country start to moving in Right direction and getting long term economic growth.

[Mhizlove]

From your topic. It's simple. Neocolonialism. colonisers never left. They just wore a different gown. Other factors might contribute. But the first and foremost of them all is Neocolonialism. Quote me if I am wrong.

In addition, I will say that Neocolonialism can be one of the factors, but I don't think that is the only reason. There are also other factors too internal challenges like weak institutions, bad economic politics and poor leadership, corruption. All these things also slows alot of countries down. Even though the external influence reduces, countries will still need a strong accountability and governance to make real improvements or development. For me I will say that for development to last, countries should address external pressures and their own internal issues too because just looking at it from only one angle of problem can make them lose or miss other important areas that needs attention.

[Egii Nna]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

Most of the countries suffering from poverty face high corruption and bad governance as the main factors. In any democratic country, there will be corruption no matter what, even if it doesn't involve money. However, bad governance is the main factor that brings poverty. If politicians are not after the betterment of the country, but are just looking for ways to embezzle public funds to enrich themselves and their families, the nation will suffer.


That is why you will see a poor nation. Most of these issues are more common in Africa, which is very sad to say. Still, if there could be a little bit of corruption but combined with good governance, most of those countries would not be that poor. Unfortunately, this extreme failure is often the result of democracy, if it weren't for that, things would not be this bad in some countries.

[Cryptomultiplier]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

No investment:
Investors avoid the country due to weak laws and no property rights, so no new factories are built.

The solution:
A stable government and low corruption are needed to turn resources into prosperity.

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

A government that places value on accountability, on export rather than import, on building incentive infrastructure that allows foreign investors to come in and invest without an uncertain environment and high taxes, would do so well economically.

We can take an instance from what is currently happening in Burkina faso with the youngest president in the person of Captain Ibrahim Traoré who took over power and so far has done well to strategically place the nation on a new pedestal to manage its own resources and develop the country instead of allowing foreign policies and imports and corrupt politicians ruin the country in total.

[stadus]

Because if those natural resources are used in a negative way, which puts the bigger advantage on the country's leaders than for its citizens, then obviously any country with rich natural resources will get poorer and poorer in time. This is what happening in my very own country, corruption is very evident, that's why Philippines was listed among the poorest countries all over the world.

We all have the best natural resources ever, unfortunately we don't get to benefit it but only the family of the highest rank in the country, and the other known elites that are doing businesses with the head of the country.

[Joy- maker]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

I will be specific here, my country was supposed to be one of the most developed and the wealthiest country in Africa because natural resources, but due to the high level of corruption, bad governance and so on my country is among the poorest countries.

My country has the large number of people living in poverty, not because the source to is not there, but because the people we elected to represent in the government and internation are after enriching themselves and their families. Our leaders can do better; they should stop using the country as business place because that's what they are using the county for, business.

[Stepstowealth]

Corruption:
Resource money goes to politicians and elites, not to schools, hospitals, or roads. Secret deals with contractors are common.

Just like what has been done in Burkina Faso where industries ownership are now being placed to public ownership that is the profit from the industries that use the resources found in the country are used and directly invested into providing free education, Free healthcare and other better Amenities for Citizens. If other countries really adopt this method there will be an improvement in the living standard of citizens.

One-resource risk:
If the economy depends on just one resource, it crashes when prices fall.

Even countries that  have just one natural resource need to find another way to not allow their economy depend entirely on it.

[passwordnow]

WHAT THINGS ARE NEEDED TO TURN NATURAL RESOURCES INTO PROSPERITY IN YOUR POINT OF VIEW ?

Make it for the people so that they're the first ones to benefit from it. And not the rich people already. Because if there's a concern to these natural resources then there will be prosperity and growth to it. Another thing to say is the safety of the area. When there's safety, peace and order then that also creates a positive trust view of the potential investors that might put money and give employment to the locals there. It's a two-way for all of them that shall benefit from the mother nature but they also need to give back.