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Global Minutes: Oil Purse Or Oil Curse?

Journal of Perinatology volume 25, pages 743–744 (2005)Cite this article

Oil and natural resources of a country are often considered to be national assets. Indeed, they should be economic bedrocks for the country. The record, however, shows that this is not true, say the analysts. The wide dichotomy of oil wealth and lack of social benefits has come to be known as “The Oil Curse.”1 The “Oil Curse” or the “Resource Curse,” as it is aptly known, is a reality. There are 34 less-developed countries that are rich in mineral and oil resources and natural resources constitute 30% of their total export revenues. In a third of these countries, however, the per capita income remains less than $1 per day. Their health indices are poor. Infant mortality is high literacy rate is low and life expectancy is low. Women's health status is poor.

Why do oil and natural wealth undermine societies? Analysts provide several explanations for this anomaly. Fluctuations in global prices create dangerous, unpredictable economic cycles so that governments cannot plan for social development. Particularly when they spend wildly in times of economic boom and simply run dry when the oil prices fall, leading to economic bust.

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References

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  1. Division of Neonatology (MC 856), University of Illinois at Chicago Medical Center, Wood Street, Chicago, IL, USA

    Dharmapuri Vidyasagar MD

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  1. Dharmapuri Vidyasagar MD
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Vidyasagar, D. Global Minutes: Oil Purse Or Oil Curse?. J Perinatol 25, 743–744 (2005). https://doi.org/10.1038/sj.jp.7211375

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