Dutch Disease
"Dutch Disease" refers to an economic phenomenon where a country's discovery of natural resources, like oil or gas, leads to a decline in other sectors, particularly manufacturing and agriculture. This occurs because the resource boom causes the national currency to appreciate, making exports more expensive and imports cheaper. As a result, local industries struggle to compete in the global market.
The term originated from the Netherlands in the 1960s, following the discovery of natural gas in the North Sea. The economic shift negatively impacted traditional industries, illustrating how resource wealth can inadvertently harm a country's overall economic health.