This is hypothesized to happen for many different reasons, including a decline in the competitiveness of other
economic sectors (caused by appreciation of the real exchange rate as resource revenues enter an economy, a phenomenon known as Dutch disease), volatility of revenues from the natural resource sector due to exposure to global commodity market swings, government mismanagement of resources, or weak, ineffectual, unstable or corrupt
institutions (possibly due to the easily diverted actual or anticipated revenue stream from
extractive activities).
«I've Seen the Future, and It Works»: Growth Under
Extractive Institutions: What Stalin, King Shyaam, the Neolithic Revolution, and the Maya city - states all had in common and how this explains why China's current
economic growth can not last