This is not the resource curse. It's basic economics actually: when there is a natural resource to be exploited, most investment, human capital and attention goes to that resource. This is because that's where the biggest returns are. Furthermore, the country's currency will get very strong, so it will make exporting anything else very difficult.
Combine these factors and you end up with a country trapped in producing mainly only that one natural resource.
This is also why Saudi Arabia is building seemingly insane megaprojects: to lure in enough production and construction to kick start a on industry unrelated to oil.
Combine these factors and you end up with a country trapped in producing mainly only that one natural resource.
This is also why Saudi Arabia is building seemingly insane megaprojects: to lure in enough production and construction to kick start a on industry unrelated to oil.