The Resource Curse. Developing countries that strike oil&#x2F;diamonds&#x2F;whatever actually do worse than countries in the same starting position who don&#x27;t discover such resources. The theory is that governments can rely on resource revenue rather than true economic development to both grow their own coffers and feed the people. True economic development requires a good legal system, education, economic freedom, and reasonable regulations. Drilling oil really doesn&#x27;t. It&#x27;s why if the oil disappeared tomorrow, Saudi Arabia would quickly be reduced to impoverished banana republic.<p>I was under the impression that this phenomenon does not hold for so-called developed countries, like Norway and the UK. I could be mistaken.