ABSTRACT
The resource curse has been covered extensively in the literature since the mid-1990s after the study of Sachs and Warner. This chapter takes a different approach arguing that there is no such a thing as a resource curse. It will apply the theory to the specific case of Algeria, which boasts resource wealth (oil and gas) and yet has not performed well on the economic front. Singapore as well as South Korea started at about the same level of economic development in the early 1960s, but have surpassed Algeria. Yet, both of these countries are resource poor. At the other extreme is Norway, an oil rich country that has performed well despite the presence of oil wealth. The question is why? The chapter will explore the data and focus on the institutional deficit as the real culprit and asks, what went wrong in Algeria?
