Eduqas A-Level Geography A110QS
Coastal LandscapesLandscape
Glaciated LandscapesLandscape
Changing Places
Water and Carbon Cycles
Global Migration
Global Governance of the Oceans
Tectonic Hazards
EcosystemsContemporary theme
Economic Growth and Challenge: IndiaContemporary theme
Economic Growth and Challenge: ChinaContemporary theme
Development in an African ContextContemporary theme
Energy Challenges and DilemmasContemporary theme
Weather and ClimateContemporary theme
Geographical Skills
Development in an African Context
The resource curse and conflict minerals
- 3 things to know
- Component 3 Section B
Overview
Resource curse, dutch disease and pula Fund.
What you need to know
Answer each one before you reveal it.
Explain Dutch disease.
How has Dutch disease affected Nigeria?
Questions from this subtopic
Each one with the model answer underneath.
- 1
Define the resource curse.
Model answer
The resource curse is the tendency for resource-rich countries to grow more slowly than resource-poor ones. Richard Auty gave the idea its name in 1993.
- 2
Explain Dutch disease.
Model answer
Large mineral exports raise demand for the local currency and push up its value. Manufactured and agricultural exports then become uncompetitive and decline.
- 3
How has Dutch disease affected Nigeria?
Model answer
Nigeria exported groundnuts, palm oil and cocoa before the oil boom of the 1970s. Oil revenue lifted the naira and those agricultural exports collapsed.
- 4
Why does revenue volatility damage a resource-dependent state?
Model answer
Government budgets rise and fall with a price the country cannot control. Projects begun in a boom are abandoned when the price falls, so the investment is wasted.
- 5
State two political mechanisms behind the resource curse.
Model answer
Mineral rents can be captured by officials with no need to tax citizens. Accountability weakens as a result, and control of the resource becomes worth fighting for.
- 6
Explain how Botswana avoided the resource curse.
Model answer
Botswana taxed diamond revenue through a state partnership and saved a share of it in the Pula Fund. Fiscal rules tied mineral income to investment rather than to consumption.
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