Resource-rich countries often face challenges that can hinder their economic growth and development. While easily earned commodity money can be a blessing, it can also be a curse in autocratic regimes that use it to maintain power and cater to certain groups. In some cases, wars may break out in countries that heavily rely on commodity money. However, there are exceptions to this trend, such as Norway, Australia, Canada, Chile, and Botswana, which have demonstrated that resource wealth can lead to prosperity and democracy.
Iran and Russia are examples of countries where the elite benefits from the wealth generated by natural resources while the general population struggles. Both countries face international sanctions and economic challenges despite their resource wealth. The gap between the elite and the rest of the population in these countries is significant, leading to social and economic issues.
To escape the resource curse and achieve broad prosperity, resource-rich countries need strong institutions, a functioning democracy, and responsible investment of resource revenues. By diversifying their economies and ensuring that resource revenues benefit the entire population, they can build a more stable future. Civil society plays a crucial role in demanding transparency and accountability from political leaders.