Question

Why some countries remain poor and underdeveloped in spite of having vast natural resources

Answer 1

Explanation:

The resource curse hypothesis is used to describe just such a situation, whereby an abundance of natural resources can lead to corruption and stagnation, or even economic contraction. “It increases the exchange rate, thereby stifling other export industries. It breeds corruption and embezzlement.

Answer 2

Answer:

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Explanation:

The following points explain why some countries remain poor and underdeveloped in spite of having vast natural resources:

1. Uneven distribution of resources: This is one of the major causes. If the resources are not distributed evenly among the country then we can notice more of underdevelopment and poverty in that country because the resources are not being used to the maximum.
2. Population: When a country has a very large population but no place for equal job opportunities or living then the government has to take some major actions which may cause trouble for the country. These actions may include taking away of jobs, house, equal distribution of amenities(resources), etc. which again causes the country to be underdeveloped or poor.