What Next?
Protests in Libya pushed oil prices sharply higher. Any protests or uprising in Saudi Arabia could be a dagger in the side of the fragile U.S. economy and also oil import countries, especially emerging countries. The increase in gas prices could be coming next. This situation has the potential to cause rapid inflation and cripple the U.S. economy.
Now the World is very much being felt by resource curse.
Resource Curse : Also known as the paradox of plenty. A paradoxical situation in which countries with an abundance of non-renewable resources experience stagnant growth or even economic contraction. The resource curse occurs as a country begins to focus all of its energies on a single industry, such as mining, and neglects other major sectors.
As a result, the nation becomes overly dependent on the price of commodities, and overall gross domestic product becomes extremely volatile. Additionally, government corruption often results when proper resource rights and an income distribution framework is not established in the society, resulting in unfair regulation of the industry. The resource curse is most often witnessed in emerging markets following a major natural resource discovery.