18 Questions
What is a common issue in resource-rich countries according to the text?
Lack of opportunities for locals
How do elites in resource-rich countries capture large sums of revenue?
Engaging in rent-seeking behavior
What is a consequence of capital-intensive extractive industries as mentioned in the text?
Importing specialized machinery from abroad
Why are institutions weaker in resource-rich countries according to some researchers?
Elites capturing large sums of cash easily
What are some examples of tools used by elites to capture revenues in resource-rich countries?
Sovereign wealth funds and national oil companies
How does the text describe job opportunities in resource-rich countries?
Few despite high investments and specialized machinery imported
What can happen to governments when they over-borrow during boom times?
They experience widespread bankruptcy during busts.
Which countries experienced debt crises due to over-borrowing in the 1980s?
Mexico, Nigeria, and Venezuela
What is the impact of Dutch disease on export-based manufacturing sectors?
It results in a decline in export-based manufacturing due to inflation or exchange rate appreciation.
What is the long-term consequence of inflation and exchange rate appreciation caused by Dutch disease?
Harm to large sections of the economy for decades
Which term refers to the negative effect natural resources can have on other industries in an economy?
Resource Curse or Dutch disease
Which countries have documented cases of stunted manufacturing sectors due to natural resources?
Iran, Russia, and Trinidad and Tobago
What can help minimize the impacts of a large increase in natural resource revenues on the economy?
Transforming resource revenue into tangible investments
Which countries have largely managed to overcome Dutch disease in the last 25 years?
Chile, Indonesia, Norway, and the UAE
What is a consequence of a large increase in natural resource revenues according to the text?
Inflation or exchange rate appreciation
How does the Resource Curse disproportionately impact women according to the text?
Fewer women in the workforce and limited representation in government
What is one explanation for the lower representation of women in resource-rich countries according to the text?
Export-oriented manufacturing being less likely to succeed due to Dutch disease
What strategy can help a government overcome Dutch disease?
Placing a portion of resource revenues in foreign assets
Explore the concept of Dutch disease and how it can be mitigated through strategic management of resource revenues. Learn about countries like Chile, Indonesia, Norway, and the UAE that have successfully navigated the impact of Dutch disease.
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