The ''Dutch disease''

Every economy is affected with a few failings one of which is Dutch dieses. This financial discomfort was to portray the troublesome effect in the Netherlands' many business areas, strangely after the discovery of huge natural resources (gas reserves) in the past part of the 1960s.

This dieses can be bigger problem for many economies which can be named as 'The Natural Resources Curse'. Dutch dieses can not only affect through Natural resources but also through the other resources which are country's economic needs largely.

It all started in past 1959's when Netherlands disclosed the discovery of huge gas reserve in the country. Once Netherlands was one of the largest exporters of many goods with their massive manufacturing sectors and other business in past days with good employment rate. But the things turn around after the discovery of Natural resources in the country and when the Dutch's decided to start the extraction of the gases. They also succeeded exporting the gas by extracting in large quantity.

Approximately after 10 years (1970 -77) the unemployment ratio started increasing by 5.1% and private sector investments started to decline. Economists were confused whether the discovery of the resources are beneficial or it is a curse for the country. The natural resources were massively exported to various other countries and foreign investments inflow started to get in.

In past days there were no specific skills required for the mining sector and since there was huge manpower demand for the extraction of the resources many workers shifted themselves from other sectors to mining sector, but in this case there wont be any skill development and knowledge to the workers.

All other businesses were in large manpower crunch and many manufacturing industries started shrinking which diversly affected the exports of the other goods from the country. Also with the effect of FDI the currency started to get stronger from the gas export but other exported goods were becoming costlier and the manufacturing sector could not sustain themselves.

However there are many different countries like UAE, Saudi Arabia, Australia, Norway who were very fortunate from the discovery of Natural resources and were successful in avoiding Dutch dieses. For example UAE was not having other sectors of exporting goods to other countries and complete focus was to do the mining of Oil and export. All other goods and services were imported to the country in the past days. Most of the middle eastern countries in modern days are lifting themselves up from the oil dependency and started exploring the other sectors to diversify the industries. In the case of Norway where many resources are discovered but it was successful in avoiding Dutch dieses by concentrating with other sectors as well, also the funds recovered from the natural resources exports were spent on Human welfare, Education and Infrastructure largely and gave the good quality of life to the citizens with the diversified industrial sectors.

With the poor policies and mismanagements there are several other countries like Congo, Zimbabwe fell in to the Natural resources curse and adopted the Dutch dieses.

Calling any natural resources a curse would be impulsive. It is so marked on account of awful monetary strategies and administration in the country. Its terrible strategies which go about as a revile and compel the acknowledgment of advantages from resources. The market isn't ignorant concerning this over the long run, yet the monetary harm ordinarily happens in regular short-run sequences. What adds to the puzzling idea of these unfriendly effects is that when the market attempts to force a costly dollar. Although we really do not need to analyze this time series to establish the fascination.