how has the resource curse affected Saudi Arabia? the economy of the country has not grown

Answer 1

as diversely as it could have due to its heavy reliance on oil exports. This over-dependence on oil has made the country vulnerable to fluctuations in global oil prices, leading to economic instability and a lack of diversification in other sectors.

Additionally, the resource curse has also contributed to corruption, mismanagement, and inequality in Saudi Arabia. The government has not effectively redistributed wealth from oil revenues to benefit the entire population, leading to a high level of income inequality and limited opportunities for social mobility.

Furthermore, the resource curse has hindered the development of other sectors such as manufacturing, agriculture, and services, as they have been neglected in favor of the more lucrative oil industry. This lack of diversification has left the country vulnerable to economic shocks and hindered its long-term economic sustainability.

In conclusion, the resource curse has had a negative impact on Saudi Arabia by preventing the economy from growing diversely and sustainably, contributing to corruption and inequality, and hindering the development of other sectors.