Resource-rich regions face conflict and economic stagnation, study finds.
Natural resource abundance can lead to economic problems and conflicts. Models show that when there are a lot of resources in one area, there can be intense competition for them, which can hurt the economy. However, having a lot of resources in one place can also make it easier to find peaceful solutions. Surprisingly, fighting over resources through violent conflict might actually be better for the economy than trying to get them through other means.