Question number 3

Figure 2 below is generally taken as empirical evidence of the so-called "natural resource curse".

Figure 2

Figure 2 8 Singapore o Korea Taiwan 6 o Hong Kong Malta Botswana o Indonesia Mauritius o Cyprus . Iceland Malaysia 2 8 Algeria . Fiji . Nigeria Gabon Gambia Mauritania Real GDP Growth Per-capita 1970-1989 Venezuela Bahrain "Cote D'Ivoire Saudi Arabia -2 Chad Niger Nicaragua . Iran o Guyana Zambia . Liberia United Arab Emirates -4 -6 o Kuwait -8 10 20 30 40 50 60 70 80 Exports of Natural Resources, in percent of GDP, 1970 Fig. 1. Growth and natural resource abundance 1970-1989