Volume 13 | Issue 4
Volume 13 | Issue 4
Volume 13 | Issue 4
Volume 13 | Issue 4
Volume 13 | Issue 4
Natural resources are a boon to humans on the planet. According to research, both outcomes are possible. The report examines several ideas and supports data on why some countries benefit from natural resources while others lose. These include the fact that a resource bonanza leads to real exchange rate appreciation, de-industrialization and poor company growth, and that these negative consequences are associated with weak institutions and lack of rule of law in combustible countries, as well as the President. of democracies are in worse shape of developed financial system. Another theory is that the commodity boom encourages rent demand and civil unrest, especially if institutions are weak, causes corruption, especially in non-democratic countries, and perpetuates destructive policies. Finally, resource-rich developing economies are unable to appropriately transfer their limited resources to some other productive asset as they become depleted. In addition, the survey suggests some welfare-based financial principles to capture the windfall gains of resources in both prosperous and developing economies.