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

[Bright0515]

Corruption is the main reason why a lot of countries are poor despite having a lot of natural resources and I'm going to use Nigeria as an example, this country is blessed with a lot of natural resources and it supposed to be the richest country in Africa but due to poor leadership and all the country and it's citizens stay poor. A lot of African countries are also like this, the leaders use poverty as a means to keep the people stagnant so that they can always be dependent on them for the purpose of controlling them.

[Btcdeybodi]

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.

You are absolutely correct. when we are talking about things that will improve Economic growth in a country, it first has to do with the mindset of our leaders because if our leaders are selfless and put the interests of the citizens at heart then they will put in everything necessary to make sure they employ best practices that will be beneficial to the masses. Funny enough, most of our leaders have turned our natural resources into personal achievements which has led many countries with natural resources to experience low and slow economic growth, because when a single entity monopolize something that is supposed to be under the care of the government, it means that its dividends won't spread across to others.

[Jubilee58]

When their is corruption in the leadership of a y country, the economy of the country is bound to crash. Now this is what happens, the corrupt leaders now put their own personal interest rather than the interest of the masses. With this intension, the corrupt leaders now loot the nations money to invest in their own personal business outside the country instead of developing their own country.
Another thing that makes a country poor even with their natural resources is when the leaders begin to borrow money from other nations, and their by using their own natural resources to repay their debt, in most cases the country that lend them the money now gain full control of the natural resources probably for years in order to get back their money.
Another factor that can affect a country even with their natural resources is bad governmental policies, in a situation where the leaders only make policies that will be more favourable to them instead of the general public, the economy is also bound to crash. For instance, when their is bad monitary policies, the fiat currency depreciate which gives rise to inflation, and economic hardship.
To solve these economic challenges, leaders should be selected based on trust rather than sentiment, if a country has a good leader, possibly many things will be put right, and the leader will also listen to the complaint of the masses, and act accordingly.

Now, depending on one source of income as a country is wrong. However, a country can decide to invest in asset like bitcoin which serves as a store of value, hedge against inflation, and appreciate in value on the long. So, combining natural resources with bitcoin investing can help to boost the economy of a country on the long run.

[Cheema02]

Corruption is the main reason why a lot of countries are poor despite having a lot of natural resources and I'm going to use Nigeria as an example, this country is blessed with a lot of natural resources and it supposed to be the richest country in Africa but due to poor leadership and all the country and it's citizens stay poor. A lot of African countries are also like this, the leaders use poverty as a means to keep the people stagnant so that they can always be dependent on them for the purpose of controlling them.

We observes that many resource rich countries remains poor because there leaders are currput and don't proper implementation of laws can be seen. So in this list Nigeria is on the top because Nigeria has oil, game and a lot of unique resources but still it struggling to overcome poverty. The reason is that there leaders are not invest on education, health care and infrastructure so due to this there economic growth becomes lower day by day. Corruption is not only the factor behind there declined and many other factors like weak institutions, poor governance and economy challenges are the main factors which directly effects the economy. Many other African countries also faces these problems so for the progress of countries citizens also play there roles by reducing corruption and obeying laws so if both government and citizens make efforts then countries automatically moves on right track.

[Nightwatchmare]

Some countries like Africans, have taken it upon themselves that, they are meant to remain poor despite having all the natural resources available. We have plenty of what it takes for the country to be developed, better and more. but, because of greed and corruption from our leaders, have kept our country in a bad situation where we need to beg them to develop the country. Another thing that has kept some countries poor is lack of knowledge, not knowing what to do with the resources, if you look some of this leaders, are not well educated and are not qualified to sit on any of the leadership sit. But, because they have only one goal, which is to enrich themselves and those around them. Had the been there mindset was to come and start developing every resources we have, you will see that poverty will not be the talk of the day. We need leaders and citizens who will stand up today, and know the value of the beautiful natural resources we have and turn them into building factories where people can be employ and also learn a skill.

[uneng]

Because they sell raw materials to foreigner countries and don't have their own technology to manufacture raw materials into final goods. There is a saying in my country which claims it sells/exports a ship of aluminum and imports back a canoe of laptops. Of course the biggest profit will stay on the hands of the countries where it's done the hardest part of the job.

[Bitcoin Maxi]

Natural resources are the blessings from earth, but  there are some countries that do not have much natural resources and they are not supposed to rely on the few natural resources so they have other resources to keep the country flowing.
Also there are countries with abundant of natural resources but people still remain poor in the country. Corruption has taken over and our leaders are just after their own personal interests. They convert the funds from this natural resources that's meant to help the nation grow into their own pocket and personal businesses instead of using it to fixed the nation.
Another factor that could make a country stay poor despite having abundant natural resources is incompetent or bad leadership and governance. some leaders lack knowledge of how they can effectively use or utilize the resources available in the country to benefit the country and the masses. Also poor management of funds can make a country to be poor despite abundance of resources in it.

[gwapako]

Countries remain poor despite having lots of natural resources because of the government and its people. When the government officials are corrupt, that will not do good on the country and its people. Corruption can decay a rich country. Instead of spending the taxes for first the benefit of the entire nation, the taxes go to the pockets of the greedy.

The country's people can also be the cause why a poor country remain poor. If the people are smart enough to elect honest government officials, then the country will surely progress. If the people are also dependent too much on government, then that cannot be good. People should work hard and smart with or without government support. As the adage says, "Give a man how to fish and you feed him for a day. Teach a man how to fish and you feed him for life. " The people should do something to make their lives better.

[junder]

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.

I think corruption will not be eliminated completely unless the leader is really tergas in carrying out their duties so that he does not hesitate to punish anyone who makes deliberate mistakes such as corruption, but the problem is the leader himself who is also bad performance even corruption also then the country will never progress and what happens may be just a riot like a demo.

[Obim34]

Because they sell raw materials to foreigner countries and don't have their own technology to manufacture raw materials into final goods. There is a saying in my country which claims it sells/exports a ship of aluminum and imports back a canoe of laptops. Of course the biggest profit will stay on the hands of the countries where it's done the hardest part of the job.

This is one of the weirdest things which I'm confused about, a country producing crude oil, sells the raw produce, and buy back refined produce from foreigners at a higher rate, meanwhile it costs nothing for the government to establish a fine refinery, if not because they get extra cash from selling to foreigners, It doesn't make any sense.

[bakasabo]

Because they sell raw materials to foreigner countries and don't have their own technology to manufacture raw materials into final goods. There is a saying in my country which claims it sells/exports a ship of aluminum and imports back a canoe of laptops. Of course the biggest profit will stay on the hands of the countries where it's done the hardest part of the job.

This is one of the weirdest things which I'm confused about, a country producing crude oil, sells the raw produce, and buy back refined produce from foreigners at a higher rate, meanwhile it costs nothing for the government to establish a fine refinery, if not because they get extra cash from selling to foreigners, It doesn't make any sense.

That is how some European countries are doing. For example farmers export "raw" milk to country that has factory that processes milk to European standards. Later they get this milk imported for a much higher price. Why cant that country create clean "standard" milk themselves? Because 1) they dont have funds for that 2) they are not allowed to do that because their hands are tightened by contracts, obligations and loans with other countries. Whole situation is a huge absurd when you sell your milk for 20 euro cents per liter and in few days buy your own milk back for +1 euro.

[MArsland]

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.

Agree 100%

The most obvious problem, from the past to the present, when it comes to a country's abundant natural resources, yet poverty persists, is that natural resource wealth is controlled by a select group and passed down through generations. As a result, the people will never experience the prosperity they deserve. Their access is limited, their resources are restricted, and their wages remain stagnant. I call it a vicious economic cycle, where only a handful of them know how to utilize these resources.

[Obim34]

That is how some European countries are doing. For example farmers export "raw" milk to country that has factory that processes milk to European standards. Later they get this milk imported for a much higher price. Why cant that country create clean "standard" milk themselves? Because 1) they dont have funds for that 2) they are not allowed to do that because their hands are tightened by contracts, obligations and loans with other countries. Whole situation is a huge absurd when you sell your milk for 20 euro cents per liter and in few days buy your own milk back for +1 euro.

I don't agree with (Because 1) - No country is poor not to be able to afford at least 2-3 major refineries in their states, what are purpose of taking loans, loans are supposed to go into economic sectors and development, how to know a good government is one who isn't afraid of leading the country to stand on her own, take for example, Burkina Faso under the new government are beginning to cut ties with the French government.

In years to come with the same government, Burkina Faso are going to be developed than other African countries.

[Leahized]

Corruption is the main reason why a lot of countries are poor despite having a lot of natural resources and I'm going to use Nigeria as an example, this country is blessed with a lot of natural resources and it supposed to be the richest country in Africa but due to poor leadership and all the country and it's citizens stay poor. A lot of African countries are also like this, the leaders use poverty as a means to keep the people stagnant so that they can always be dependent on them for the purpose of controlling them.

Yes, corruption plays the biggest role behind the poverty of a country. But the biggest cause of poverty in spite of having rich natural resources is the lack of sufficient machines or tools to extract those resources. Nowadays gas problem is increasing day by day in my state because there is enough gas as natural resource but no equipment to extract the gas. But yes there is a lot of corruption here too, which has not been addressed by the government. Therefore, to reduce poverty in low income countries, attention should be paid to natural resources and appropriate use in one own country.

[Johnlomape]

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.

Agree 100%

The most obvious problem, from the past to the present, when it comes to a country's abundant natural resources, yet poverty persists, is that natural resource wealth is controlled by a select group and passed down through generations. As a result, the people will never experience the prosperity they deserve. Their access is limited, their resources are restricted, and their wages remain stagnant. I call it a vicious economic cycle, where only a handful of them know how to utilize these resources.

We don't have to always put the problem on conolizers for helping a country to get exposure and become independent.
Bad leadership has always been the problem from the beginning. Do not forget that it was the British that conolize the United States and as we can see now, the United States is more powerful than the British empire and this is not something that was easy to accomplish. It was due to consistency and good government that have purpose that can have this kind of achievement.

Most of the countries that were colonized and are not doing well themselves was due to bad government they had that could not manage their raw materials and use it to develop their own nation. Bad politicians are after the benefits they are getting themselves and not what will help their own nation to grow in technology and get wealth.

[Dreadboost]

A country may have quality natural resources that can make it rich but may lack several qualities that will help the nation. For instance, quality education, infrastructure, good governance, a strong legal framework, and hardworking youths are examples of what a country with natural resources needs to become wealthy despite what they have. When these areas are not functioning well, the country will experience setbacks in all its endeavors. Economics will be dragged to the bottom. Corruption, insecurity, and unemployment will be common in the society. This is to tell you the importance of everyone's role in a country is what helps the country to achieve wealth.

[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.

Agree 100%

The most obvious problem, from the past to the present, when it comes to a country's abundant natural resources, yet poverty persists, is that natural resource wealth is controlled by a select group and passed down through generations. As a result, the people will never experience the prosperity they deserve. Their access is limited, their resources are restricted, and their wages remain stagnant. I call it a vicious economic cycle, where only a handful of them know how to utilize these resources.

We don't have to always put the problem on conolizers for helping a country to get exposure and become independent.
Bad leadership has always been the problem from the beginning. Do not forget that it was the British that conolize the United States and as we can see now, the United States is more powerful than the British empire and this is not something that was easy to accomplish. It was due to consistency and good government that have purpose that can have this kind of achievement.

Most of the countries that were colonized and are not doing well themselves was due to bad government they had that could not manage their raw materials and use it to develop their own nation. Bad politicians are after the benefits they are getting themselves and not what will help their own nation to grow in technology and get wealth.

That was why I said other factors. I am not completely blaming them. I only pointed out that they contribute to instabilities in other countries and are still doing so. Other factors like bad governance which you have mentioned, inability to rule. Some people can't rule themselves. Not smart and wise enough. Bad polices. So many. But the first and foremost is Neocolonialism. Libya can testify. Other countries too are not left out. But the number one is Neocolonialism.

[Fiatless]

That was why I said other factors. I am not completely blaming them. I only pointed out that they contribute to instabilities in other countries and are still doing so. Other factors like bad governance which you have mentioned, inability to rule. Some people can't rule themselves. Not smart and wise enough. Bad polices. So many. But the first and foremost is Neocolonialism. Libya can testify. Other countries too are not left out. But the number one is Neocolonialism.

You are right.

https://www.visualcapitalist.com/ranked-the-50-poorest-countries-by-gdp-per-capita-in-2025/

Many of the poor countries are located in Africa. Almost all of these countries have sufficient mineral resources that will help them lift themselves out of poverty. But another problem is war. These conflicts are sponsored by some powerful nations to enable them to control the government and have access to cheap resources. Some conflicts have religious and tribal undertones. So conflict is another important reason why blessed countries are poor.

[Su-asa]

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

This is actually the main problem and it is the reason why a lot of countries are still backwards despite the fact that they have lots of natural resources most especially countries in Africa. A lot of gold was discovered in zamfara state in Nigeria and this gold resource amounted up to a lot of money but this was confiscated by a group of elites In Nigeria. For a state to have such wealth and live in poverty it is such a disgrace. Corruption is the reason why a lot of countries blessed with natural resources can't grow economically.

[Mayor of ogba]

Abundant natural resources is enough to liberate a country out of poverty if the money gotten for the natural resources are channel into developing the country. But if a country stay poor despite having abundant resources that means the country has corrupt, wicked, and selfish leaders who are using what is meant for the country for their personal gain.