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How to Create and Use Binocular Rivalry
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Institutional dynamics produce resource curse traps.

Nusrat Molla1, Simon A Levin2, Elke U Weber1

  • 1Andlinger Center for Energy and the Environment, Princeton University, Princeton, NJ 08544.

Proceedings of the National Academy of Sciences of the United States of America
|April 22, 2026
PubMed
Summary
This summary is machine-generated.

Communities in extractive industries often face poor socioeconomic outcomes, a phenomenon known as the "resource curse." This study uses a dynamical systems model to show that initial human and social capital levels determine whether a diversified economy or resource curse prevails.

Keywords:
critical transitionsinstitutionsresource cursesustainable development

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Area of Science:

  • Economics
  • Sociology
  • Political Science

Background:

  • Communities reliant on extractive industries paradoxically experience poor socioeconomic outcomes despite economic promises.
  • The
  • resource curse
  • is extensively studied, but understanding its occurrence and escape remains challenging.

Purpose of the Study:

  • Examine the conditions under which the resource curse occurs and if it can be escaped.
  • Investigate the interplay between extractive industries, institutions, and communities.

Main Methods:

  • Utilized a dynamical systems model incorporating theories on resource extraction, institutions, and community interactions.
  • Developed a generalized model to explore feedback loops between extractive industries and institutional strength.

Main Results:

  • The model indicates that both the resource curse and diversified economies are possible outcomes, contingent on initial human and social capital.
  • Declining commodity prices can trigger irreversible transitions from diversified economies to the resource curse.
  • Feedback between extractive industries and institutional strength is critical in determining transition dynamics.

Conclusions:

  • Escaping the resource curse is difficult due to complex dynamics.
  • Highlights the critical role of institutional dynamics in perpetuating extractive economies.
  • Identifies potential leverage points for positive change in resource-dependent regions.