From Resource Curse to Resource Wealth: Energy and Economic Transformation for Sustainable Development

Abstract

This study examines the complex relationship between the energy sector and economic development that poses challenges to sustainable development in resource-producing countries. We investigate the hypothesis that resource-rich developing and underdeveloped nations struggle to maximize the advantages of their crude oil reserves, ultimately experiencing the phenomenon known as the “resource curse”. The paper examines the need for developed countries to formulate new strategies to meet their domestic energy needs. The authors argue that industrialised countries can tap into resources from developing nations, but it is important to ensure that these nations benefit fairly. The research is based on the analysis of data on oil production, human development index (HDI) ranking, and GDP to debt ratio. We call for further research to develop effective policies that can address the relationship between energy and economic issues and propose future research directions to ensure that developing countries can benefit from their energy economies.

Keywords

• energy-economy nexus
• resource curse
• debt trap