“Although and regime supporters, sharping income inequality and stifling

“Although large deposits of key resources such as oil would be
considered a blessing for the development prospects of a country, it often
turns out to be a ‘resource cure” (Collier, 2008). It is clearly characterized
and explore that impoverished countries may fail to progress if they neglect
other sectors which is also play a large number impact on economy of the
resource rich countries.

Stewart M. Patrick is a senior fellow at the Council on Foreign
Relations and Director of the Program on International Institutions and Global Governance,
argued about the natural resources curse on developing countries where the main
aspect of his title is to developing countries a fighting chance to ward off
the resource curse. There are some relevant and irrelevant argument that match
with Paul Collier of his study “the Natural Resource Trap”

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According to the
Collier by “the effect of aid, natural resources are become source of foreign
exchange in those societies where a low income country with abundant natural
resources is unlikely to be able to break into these market because the foreign
exchange they generate is not sufficient valuable within the society” (Collier,
2008). In the point of view it’s stated that aid can be a source which might
effect on natural resource fall into curse in the resource rich country due to foreign
exchange is generated by the aid donors. For example, since 2008, the Ugandan
government has thrown a colossal amount of money at the oil and gas sector in
the hope that doing so might bring a greater measure of development to the
predominantly low-income nation. However, the danger of relying on
often-volatile and finite resource have become clear that falling oil price
have turned Uganda into of the most heavily indebted countries on the planet.

The easy resource
revenue generates staggering wealth that facilitates corruption and patronage
networks (Stewart, 2012). I would not go to agree due to easy revenue may help
to increase economic development and patronage networks may depend on weak
governorate within these state. They consolidate the power of entrenched elites
and regime supporters, sharping income inequality and stifling political reform
(Stewart). Of course power makes change everything and it can impact every
sector that may turn into inequality of income.

Collier and Stewart
argued about the curse of natural resource and there are some common things
that found, it is like this kind of natural resource makes result of the worst
development outcomes where poverty, inequality and deprivation are often found
in those countries with the greatest natural resources endowment. There is a
common example deliberate of both writers are which is delivered from Stewart
like “One culprit may be the
so-called “Dutch disease,” whereby resource revenues raise a
country’s exchange rate, hurting competitiveness in non-resource sectors”
(Stewart, 2012)

They both are also agreed
another thing like about the volatility that associated with commodity prices,
which can have especially negative impacts on weak-state economic, and the underdevelopment
of agricultural and manufacturing sectors during boom periods in resource-based

I would like to add a
view from novel laureate “It might seem odd that having more money would
not help a poor country. Yet economists have long observed that countries that
have an abundance of wealth from natural resources, like oil or diamonds, tend
to be more unequal, less developed and more impoverished. Economists postulate
that this “natural resource curse” happens for a variety of reasons, but one is
that such wealth can strengthen and corrupt a government” (Deaton, 2013).