Please research the economic term “Resource Curse”.
This excerpt from Ivestopedia.
What is a ‘Resource Curse’
Countries with an abundance of non-renewable resources tend toward stagnant growth or even economic contraction. This is because easy and profitable resources pull talent and capital, and prevent the development of a diverse, complex, innovative, and adaptive economy.
The country then becomes dependent upon the price of commodities, and GDP (Gross Domestic Product) becomes volitaile because of the volatile price of commodities. (This is how the world is ‘punishing’ Russia for invasion of Ukraine – over-production of petroleum products upon which the entire country depends. So resource economies are ‘vulnerable’ not strong.)
Worse, resources are attractive for government corruption (Again, russia and ukraine are exceptional examples. Russian resources, and Ukrainian farm land. )
This is a problem in the USA, and in Canada, and in Australia, where all three countries had an abundance of territory that they are selling off to immigrants and creating a consumer economy rather than competing as their predecessor england did, or as japan has done, using technology, institutions, and culture. Or as Switzerland and Belgium have done. If you want to be prosperous you want a small homogenous country with no chance but to compete. (Switzerland is perhaps the best run country in the world.)
Cheers
https://www.quora.com/Russia-has-75-trillion-worth-of-natural-resources-How-does-this-affect-its-economy-and-the-world
