Trapped in Poverty: How Conflict and Resources Keep Countries Stuck

Among the many challenges facing the world’s poorest countries, two stand out for their destructive power: violent conflict and the natural resource curse. These traps are not isolated phenomena but deeply intertwined forces that perpetuate poverty and instability.

The Conflict Trap

Countries caught in civil wars and coups experience economic decline and social devastation. Unlike international wars that often last months, civil wars can drag on for years or even decades. The destruction of infrastructure, loss of life, and displacement of populations erode the very foundations of development. Moreover, conflict discourages investment and disrupts governance, creating a cycle that is difficult to escape.

For example, in some African nations, the risk of civil war is nearly double that of countries with higher incomes. This risk is exacerbated by poverty, slow growth, and weak state institutions. Rebel groups often finance themselves through resource exploitation, prolonging conflicts and deepening misery.

The Natural Resource Curse

Resource wealth, while seemingly a boon, can trap countries in poor governance and slow growth. The phenomenon known as Dutch disease causes currency appreciation that undermines other export sectors, leading to economic volatility. Politically, resource rents reduce incentives for taxation and accountability, fueling corruption and patronage politics.

Many resource-rich countries suffer from weak institutions that fail to manage wealth effectively. In contrast, countries with strong checks and balances can harness resource wealth for development, highlighting the importance of governance quality.

These two traps often reinforce each other. Resource wealth can fund armed groups, while conflict makes resource management impossible. The result is a devastating feedback loop that thwarts progress.

Understanding these dynamics is essential for designing interventions that address both the symptoms and root causes of poverty in these contexts.

Sources: supersummary.com, blinkist.com, shortform.com