Economist Dr. Amartya Sen has identified a paradox where countries with abundant natural resources often have slower economic growth than countries without them. This may appear counterintuitive—resources should provide wealth—but Sen notes that reliance on a single resource (like oil) can lead to corruption and neglect of other industries. This "resource curse" makes the economy vulnerable to price drops, creating instability that discourages long term investment.
Which choice best states the main idea of the text?
Although natural resources should theoretically make a country rich, over-reliance on them can cause economic instability and slower growth.
Countries with natural resources always have corrupt governments.
Foreign investors prefer countries with oil because it guarantees a high return on investment.
Countries without natural resources are doomed to poverty because they have nothing to export.
Correct Answer: A
Choice A is the best answer. The text introduces the "paradox" or "resource curse." It explains that while resources should bring wealth, reliance on them causes instability/corruption.
Choice B is incorrect. "Always" is too strong; the text says "often." Choice C is incorrect. The text says instability discourages investment. Choice D is incorrect. It discusses countries with resources, not without.