Two hundred years ago, the first industrial revolution occurred in England where
there is not much natural resource, only has coal and steel. Also, the emerging market in East
Asia such as Hong Kong, Taiwan, China, and South Korea have succeeded in developing
their countries like a miracle recently. Out of those countries, Taiwan and Hong Kong do not
have abundant in natural resources. The main factor of their successes is exportation in labor
intensive manufactures unlike the Latin America such as Bolivia, Brazil, or Argentina that
focusing on exporting raw materials but still cannot reach the satisfactory development level.
According to the statistic data of the real GDP per capita, an indicator of wealth of people
within the country, of developing countries that have poor resource grew faster than resource-
rich countries about 2-3 times.
The term of “resource curse” was originated by Auty (1993). The cause of resource
curse was result from the Dutch disease, the increase of national income from natural
resource cause the negative impact to international trade due to the appreciation in domestic
currency. Later, Sachand Warner(1995,1997) also analyzed the relation between the richness
of natural resource and the country’s growth, the result shows the a negative relation. By
discovering more resource, instead of lift up the nation’s wealth, it slows down the economic
growth and worsens the corruption. The civil wars occurred in Nigeria after they discovered
the oil resource in 1956. Also, government becomes more aggressive in acquiring the power
in controlling the price. Sometimes they get support from foreigners who want to benefit from
the resource. For Burma, the military system became stronger after the natural gas has been
found. The large amount of revenue earning from this discovered resource was used to buy
weapons to kill the minor group of people. Even though most of the people resisted it, no one
could stop the military’s power.