Natural resources can be a curse or a blessing, depending on institutional quality, governance, and economic policies. The paper surveys various hypotheses explaining why some countries benefit from natural resources while others suffer. Key factors include real exchange rate appreciation, deindustrialization, and poor growth prospects, which are more severe in countries with weak institutions, corruption, and underdeveloped financial systems. Resource booms can also lead to rent-seeking, corruption, and civil conflict, especially in non-democratic countries. Resource-rich developing economies often fail to convert their natural resources into productive assets, leading to persistent poverty and inequality. The paper also discusses the importance of institutions, financial development, and fiscal rules for managing resource wealth sustainably. It highlights the role of the Hartwick rule in ensuring that resource rents are reinvested in productive capital. The paper presents stylized facts showing diverse experiences of resource-rich countries, including success stories like Botswana and Norway, and failures like Nigeria and Venezuela. It also discusses historical evidence on how natural resources can contribute to economic development through property rights and innovation. Cross-country correlations suggest that resource dependence is associated with lower growth, openness, and education levels, while higher macroeconomic volatility is linked to resource dependence. The paper concludes that good institutions and effective governance are crucial for turning the resource curse into a blessing.Natural resources can be a curse or a blessing, depending on institutional quality, governance, and economic policies. The paper surveys various hypotheses explaining why some countries benefit from natural resources while others suffer. Key factors include real exchange rate appreciation, deindustrialization, and poor growth prospects, which are more severe in countries with weak institutions, corruption, and underdeveloped financial systems. Resource booms can also lead to rent-seeking, corruption, and civil conflict, especially in non-democratic countries. Resource-rich developing economies often fail to convert their natural resources into productive assets, leading to persistent poverty and inequality. The paper also discusses the importance of institutions, financial development, and fiscal rules for managing resource wealth sustainably. It highlights the role of the Hartwick rule in ensuring that resource rents are reinvested in productive capital. The paper presents stylized facts showing diverse experiences of resource-rich countries, including success stories like Botswana and Norway, and failures like Nigeria and Venezuela. It also discusses historical evidence on how natural resources can contribute to economic development through property rights and innovation. Cross-country correlations suggest that resource dependence is associated with lower growth, openness, and education levels, while higher macroeconomic volatility is linked to resource dependence. The paper concludes that good institutions and effective governance are crucial for turning the resource curse into a blessing.