Economic diversification is vital to countries' long-term economic growth, but many resource-rich nations fail to expand their sources of income beyond oil, gas and mining.
Economies heavily dependent on natural resources can face serious challenges in sustaining growth because of swings in prices for those resources. The need for diverse sources of income goes beyond fluctuating prices. Being rich in natural resources can hurt macroeconomic stability, crowd out domestic industry such as the manufacturing sector, increase the likelihood of civil unrest and undermine democratic institutions.
Read more of this report by Revenue Watch.
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