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A country may face a
paradoxical situation where the county with an abundance of non-renewable
natural resources experience can lead stagnant economic growth or contraction. So
the possess of natural resource abundance may occur to be bound of development and
barrier of progress of those countries. When a country runs by focusing all of
its energies on only a single industry, for example as mining and neglect other
major important sectors, such as textile the resource curse must be occur over
this country.  As a result, it is
commonly stated that the nation becomes dependent on the price of commodities
as well as overall gross domestic product become extremely volatile that is
main concern for the natural resource trap. In addition, lack of proper
resource rights and income distribution framework in that society is become the
main issues of government corruption; also result is unfair regulation of the
industry. In my paper, I would like to compare two authors of their work that
talked to ‘the Natural Resource Trap’ and also will collaborate their
similarity and differentiation by analyzing as a middle point between them.   In the developing countries an abundance of
natural resources brings economic prosperity where those raw materials often
represent the single biggest to state finance but the natural resource curse
affects these resource rich countries due to low-income primarily. Besides county’s
governing different sectors such as economic, political and also social that
are large part involve and bound to different kinds of corruption. So the
resource curse hypothesis is used to describe just as a situation, whereby an
abundance of natural resource can lead corruption, it can increase exchange
rate, stifling other export industries, increase corruption, and also may occur
different conflict that affect development of country’s progress. “At least 80
percent of countries considered fragile or affected are home to valuable
extractive that the global economy hunger for. Earth’s riches like oil, gas and
minerals often fuel conflict trapping all but the elites in poverty amid vast
wealth” (World Bank, 2013).

The issue of the
Natural Resource trap that I found to both work which is very relevant to
discuss with broader perspective and deeply analysis by focusing different
countries of resource rich societies.  

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