The term "resource curse" refers to the paradoxical situation where countries with an abundance of natural resources tend to have worse economic and social outcomes than those without them. The theory behind this phenomenon is that when a country has an abundant supply of valuable resources such as oil, minerals or timber, it can lead to several negative consequences including: 1) the misallocation of capital towards extractive industries rather than productive sectors like manufacturing and agriculture; 2) corruption and rent-seeking behavior by government officials and elites who have control over the resources; 3) a lack of diversification in the economy, making it more vulnerable to price fluctuations and shocks; 4) environmental degradation due to excessive resource extraction; and 5) social inequality as the benefits from natural resources are not evenly distributed among the population. Overall, the "resource curse" suggests that having an abundance of valuable resources can hinder a country's development rather than promote it.