Conventional economic theories propose that natural resource endowments are part of a nation's overall wealth, and thus contribute to investment, economic growth, and social welfare. However, there is a growing body of evidence that developing countries and countries in transition have not been able to exploit these resources to bring about a sustained process of social and economic development. Moreover, a recent World Bank study suggests a very strong link between the predation of resource rents and the incidence of internal political conflict in these countries. The key research challenge is to strengthen our understanding of the social, economic and political factors behind this apparent 'resource curse', and to discover the conditions, institutions and policies which can turn the curse into a blessing. Specific attention is paid to the social and economic impact of investment in the mining, petroleum, forestry and fisheries sectors, to the role of local and indigenous communities in the management or exploitation of renewable and non-renewable resources, and to the ways in which different forms of extractive industry can contribute to sustainable development and good governance in the countries of the Asia-Pacific region.
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