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

[Sticky Bomb]

I would not entirely say that the country lacks system but corruption is the right word to use in categorizing such situation.

Corruption destroys every good system. Countries currently suffering from degraded system due to corruption once had good and functional systems and most of this corruptions is as a result of conspiracies from colonial masters who uses that this to maintain control of the countries resources. Most of the resources aren't really mismanaged, but they're used to pay continued loyalty to the enemies of developing countries cum colonial masters. Many countries in Africa has managed to break a bit free from such schakles for example Niger, Mali, Burkina Faso e.t.c. Earlier before now, Niger indigenes are seen all over Nigeria begging, but I've not seen that since the military took over. Most countries can do better, but they're constrained by powers that be and cannot give their citizens the best. Funny enough those destroying them always pose as their best friends

[Razmirraz]

Corruption is like blood in the flesh that is difficult to remove, many countries have been destroyed due to the greed of politicians who openly drain state funds for personal or group interests, so that infrastructure development, health and education services are hampered. It takes a combination of clean governance, economic diversification, and strong legal institutions to transform natural resource wealth into equitable prosperity. Countries that have successfully implemented the principles of economic development and enforced the law impartially, including against corrupt officials, as China has done, have proven that natural resources can be managed to create long-term prosperity for the entire community.

[DiMarxist]

The reason why most countries which are poor despite, having enough resources is simply due to poor management and corruption. When a government is not prudent and lacks efficient planning which has to do with budget and execution of projects, poor management of resources is key and is a key factor that contributes to poor State of a nation. Secondly corruption is another big challenge that contributes to a nation been poor, when the political class is more concerned about what they can get rather than what they can contribute to their nations. It natural that these poor will reck the nation dry by looting from the treasuries.

[MRY]

The reason why most countries which are poor despite, having enough resources is simply due to poor management and corruption. When a government is not prudent and lacks efficient planning which has to do with budget and execution of projects, poor management of resources is key and is a key factor that contributes to poor State of a nation. Secondly corruption is another big challenge that contributes to a nation been poor, when the political class is more concerned about what they can get rather than what they can contribute to their nations. It natural that these poor will reck the nation dry by looting from the treasuries.

The poor countries can become the rich countries due to mismanagement of wealth by the leaders. This selfishness of rulers who like to receive, but not to give often results in the waste of public funds. It is necessary that a leader is truthful so that the money belonging to the state is not spent to enrich him/her. Corruption will be a curse that will slow the pace of an economic development of a developed nation.

[Youngrebel]

The reason why most countries which are poor despite, having enough resources is simply due to poor management and corruption. When a government is not prudent and lacks efficient planning which has to do with budget and execution of projects, poor management of resources is key and is a key factor that contributes to poor State of a nation. Secondly corruption is another big challenge that contributes to a nation been poor, when the political class is more concerned about what they can get rather than what they can contribute to their nations. It natural that these poor will reck the nation dry by looting from the treasuries.

Exactly, corruption and poor management are two of the main reasons resource rich countries remain poor and underdeveloped because even those countries that has abundant natural resources to develop the countries are not yet developed why because of weak institutions, lack of accountability, and e greedy leaders and this things can prevent those resources from benefiting the population.

[programmer3666]

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 ?

That's a million-dollar question that even the best minds are yet to solve. You see countries with oil, gold, diamonds, and gas, yet their people are still suffering. And, countries with nothing but sand and rocks are doing well. Take Nigeria my own country and Dubai for instance. Nigeria has oil, gas, solid minerals and good land for farming but yet many people are poor. Dubai had almost nothing but sand, but they used what they had wisely, invested in infrastructure, tourism and business, and now they are a global hub. One key difference is leadership and mindset. If the people in charge are only there to steal and enrich themselves, the country will stay poor no matter how rich the land is. But if they invest in in quality education, healthcare, roads and create an environment where businesses can grow, then the people will surely benefit.

[Cgrexp]

The reason why most countries which are poor despite, having enough resources is simply due to poor management and corruption. When a government is not prudent and lacks efficient planning which has to do with budget and execution of projects, poor management of resources is key and is a key factor that contributes to poor State of a nation. Secondly corruption is another big challenge that contributes to a nation been poor, when the political class is more concerned about what they can get rather than what they can contribute to their nations. It natural that these poor will reck the nation dry by looting from the treasuries.

The poor countries can become the rich countries due to mismanagement of wealth by the leaders. This selfishness of rulers who like to receive, but not to give often results in the waste of public funds. It is necessary that a leader is truthful so that the money belonging to the state is not spent to enrich him/her. Corruption will be a curse that will slow the pace of an economic development of a developed nation.

Leadership plays a major role in the development of a country. If leadership is not good, corruption and misuse of resources are more prevalent in that country, which creates obstacles in the development of the country. Along with the leadership of leaders, the rule of law, a strong judiciary, and efficient administration are also necessary, and citizen participation is also important. When proper use of government funds is ensured, the long-term success of the country is ensured. In order to ensure the sustainable economic development of the country, it is necessary to develop a culture of corruption-free leadership and transparent accountability.

[davis196]

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.

Was Russia a colony? Was Iran a colony? Seeking the simplest explanation to everything doesn't provide a proper answer to the question.
Some countries have lots of natural resources and a small population, which allows them to become very rich, for example Saudi Arabia, Qatar, UAE, Bahrain, Kuwait, etc. Other countries have abundant natural resources and a big population, like Russia, Iran, Nigeria, Venezuela, etc.
Having natural resources isn't enough to make your entire population relatively wealthy. A country needs good education and healthcare systems, great infrastructure and a properly working and competitive market economy in order to achieve a decent standard of living for the vast majority of it's population.

[Zlantann]

Was Russia a colony? Was Iran a colony? Seeking the simplest explanation to everything doesn't provide a proper answer to the question.
Some countries have lots of natural resources and a small population, which allows them to become very rich, for example Saudi Arabia, Qatar, UAE, Bahrain, Kuwait, etc. Other countries have abundant natural resources and a big population, like Russia, Iran, Nigeria, Venezuela, etc.

Is Russia or Iran a poor or developing country? Classifying these two nations as poor is highly debated. These countries have been subjected to severe sanctions, yet they have maintained a highly educated population, and they have also achieved industrialization. Considering nations like Saudi Arabia, Kuwait, Qatar, UAE, Bahrain, and others as rich or developed is also relative. These nations have shown little proof of technological or scientific advancement over the years. They depend heavily on other nations for modern inventions. Meanwhile, Russia and Iran have developed immensely in every aspect of science and technology.

[Y3shot]

Bad leadership and corruption are two of the major reasons why a country with natural resources can still remain poor, and the economy is nothing to talk about. When the corruption rate is low and there is a leader who understands the economy, along with the natural resources and production, it can boost the economy.

Mismanagement of money is another setback for a country. If you check countries with natural resources that are still underdeveloped, you will surely find two things: corruption and bad leadership, which are affecting the country severely.

[dzonikg28]

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 ?

There is this saying about trust that "you need years to build it and seconds to destroy it" and with that it goes hand in hand that rebuilding trust takes an eternity once it was destroyed. Sometimes it can't ever realistically be rebuilt.

You gave the answer yourself here

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

And while that is a big part of the solution, the time to get there will be very long. Removing corrupt structures and replacing them with less corrupt structures requires more than just one stable government. It won't survive for very long as the incentives are always there to either undermine the stable government continuously, threaten them with death, eventually kill them. You can see that countries with a high degree of education are full of corruption. Take the USA as an example, Russia, Ukraine, whenever there is something to be gained from corruption, it will be there. YOu can't eliminate corruption 100%.

The difference may be that the threshold for large scale effective corruption in rich countries is higher on average than in poor countries and when poor countries have a resource that rich countries need, the chance that a government resists approaches from foreign governments to grant them favorable deals is probably zero.

And if that were to work out, you needs much more than trustworthy government officials. There will be gangs or cartels trying to control sources for valuable resources. You need the whole apparatus of administration, judicature and enforcement and all that personnel must more or less be sourced from your own population. Hence you need education.

It is not simple at all and as short as your sentence about your "solution" is, it falls short of getting a good picture of the full truth what is needed to tackle proliferated corruption in a poor country with high value resources.

[CryptoBuds]

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.

I tend to agree with you. People are not wrong to say that corruption and poor governance are the reason why a country remain poor despite possessing abundant mineral resources. However, that is just the tip of the iceberg, and the deeper reason behind it is that colonialism or imperialism has not disappeared at all. They are still quietly operating under new names, dressed up as development cooperation, foreign investment or technical assistance.

Instead of using the army, warships, and bombs to invade and plunder. Now, they set up puppet governments, manipulate politics, create financial trap, and quietly pull the strings from behind the scenes.

[Oasisman]

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

Find a visionary leader. Natural resources can always be used to improve a country, there is nothing could go wrong, unless a corrupt politician sits in the position, and then comes another, until it becomes a political dynasty.
This is what normally happens to the 3rd world countries. You can see these countries are rich with natural resources, but there seems to be very slow to no improvements at all.

[tottong]

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 ?

We see the current situation several countries possess abundant natural resources, but their people are poor, and only a handful of people benefit from their abundance.
The government must develop the skills of the people so they can process these natural resources independently within the country. This is a huge challenge because it will cause many disruptions, especially for the few individuals or groups who benefit most from these natural resources.
A corrupt government will not develop the skills of the people because otherwise, they will be unable to profit significantly from the natural resources they possess.

In my area there are gold mines and oil fields, but because they are illegal, only a few individuals with significant influence and capital benefit, while the general public is reduced to day laborers, paid inadequately for the work they do.
This is why a clean government capable of improving the skills of the community is so necessary so that not only a select few benefit, but society as a whole.

[Curious T]

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.

False. Very, very false.
This is an excuse third-world countries make, instead of holding their leaders responsible. I am Nigerian, and I can use my country as an example, and it will be the same with most African countries. There is enough money in the country to turn the country into a developed country in 15 to 20 years, but everybody is so greedy and myopic that they only think about themselves.
The politicians don't even know it is their job to provide security, jobs, electricity and water, a good transport system, and good education. To make it worse, the citizens don't even know that it is the government that they elected into power that is responsible for providing these things for them. And when they don't know, they can't hold them responsible.

Foreign countries are only taking resources out of Nigeria because it benefits the politicians or those in charge of those sectors. The Westerners and the Chinese are just taking advantage of the greed, selfishness, stupidity, and ignorance of the leaders.

And they have successfully brainwashed people like you into blaming someone else instead of holding them responsible. It's not like they have no hand in the matter.

[letteredhub]

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

Find a visionary leader. Natural resources can always be used to improve a country, there is nothing could go wrong, unless a corrupt politician sits in the position, and then comes another, until it becomes a political dynasty.
This is what normally happens to the 3rd world countries. You can see these countries are rich with natural resources, but there seems to be very slow to no improvements at all.

Bad leadership and lack of proper management and a long years of no accountability system is also part of the problems which all points to the rotten "corruption dynasty" you stated. Natural resources wouldn't utilize itself to the development of the region it's deposited but it's rather how the people organise to manage and refine them and then using the proceeds for the general good. But than taking these resources as a common wealth it's rather in the opposite as some few group of corrupt oligarchy creates a system of embezzlements that continues to make them richer and stronger  than the institutions of the state that was supposed to be serving as an agent of law enforcements.

[Davidvictorson]

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.

Sadly, this is the truth.
Many people may not know but most of their heads of states are just puppets, figureheads doing the biddings of their masters.
They continue to encourage them to borrow trillions to build their economy while mortgaging the future of generations into slavery.
These countries cannot grow economically and other ways.
It is just so painful to think about but that is the reality of most African countries.

[Creeper0]

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

To turn natural resources into prosperity, nothing is needed, just avoid corruption. If corruption is avoided, the rest of the work will happen automatically, such as proper use of resources, balanced distribution and prosperity.

Every nation in the world has resources, every state has resources. But only those who can control corruption have been able to prosper. Some poor countries in the world today have more natural resources than the rich countries, but due to corruption, those rich countries or corrupt leaders are looting the resources of poor countries. That is why despite having resources, countries are suffering from poverty.

[Gozie51]

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 ?

Good leadership is the only panacea to grow a country's economy. Growing economy means to utilize the raw material deposit that the country has for the general good of the people. Apart from natural resources utilization, good leadership will create social institutions and structure that will ensure that corruption from subjugated authorities will not spring up. This is because, if the highest government authority is devoid of corruption then it will ensure that legislation for ipunishment for corrupt people is strict. A good leadership will properly harness resources found in the country by creating enabling environment for other facets of the economy to blossom.

[Rabata]

There is no reason to think that a country will be rich only if it has natural resources. There are many countries that have natural resources, but due to various reasons including mismanagement and corruption, the country remains underdeveloped. Despite having natural resources, if the income of that country is not used for public welfare and that money goes to a few people, then no matter how much natural resources that country has, it will never be of any use to that country.

If there is corruption, even if there is natural resources, it has no value unless those resources are used properly. Again, there are some countries where there is always conflict and political instability, and the proper use of the natural resources of those countries is not possible. Even if a political party tries to do something good, it is difficult to do so due to various pressures. Moreover, a big problem is that there are natural resources, but if there is no skilled manpower, then development using the natural resources of that country is not possible in the long term.