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In economics, the phenomenon of a country making worse policy, business and investment decisions after discovering a massive source of natural resources is know

• Gys 2y ago
  Interesting! From wikipedia: The presumed mechanism is that while revenues increase in a growing sector (or inflows of foreign aid), the given economy's currency becomes stronger ("appreciates") compared to foreign currencies (manifested in the exchange rate). This results in the country's other exports becoming more expensive for other countries to buy, while imports become cheaper, altogether rendering those sectors less competitive. So the Netherlands should be thankful for the Euro, which took away those effects on their local currency.