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If you have actual abundance of natural resources, they are just not being extracted, you can get out of the trap temporarily by putting people to work on creat
by js8 6y ago
If you have actual abundance of natural resources, they are just not being extracted, you can get out of the trap temporarily by putting people to work on creating/maintaining the capital required for the extraction. The supply of labor is then the constraint for economic growth. This is what many communist countries (USSR, China) actually did during their own development. But eventually this capital accumulation will end and you will face the resource constraint, which is actually (somewhat counterintuitively) worse for the labor. People should want the economy to be constrained by labor supply.
- pydry 6y agoAll things are possible if you have honest and effective governance. The problem is that the honest and effective governance breaks down because warring factions are usually fighting over resource control.