The Paradox of Plenty: Understanding the Link Between Natural Resources and Corruption in Developing Countries

Abstract

Countries with abundant natural resources (SDA) are often trapped in the resource curse paradox, where natural resources actually trigger corruption, inequality, and institutional failure. Indonesia, although rich in nickel, coal, and palm oil, is often considered to be experiencing this phenomenon. Similar conditions are also experienced by Nigeria, Venezuela, and the Democratic Republic of Congo (DRC), despite having large reserves of oil, gas, and minerals. This article aims to analyze the relationship between natural resource wealth and the level of corruption, as well as compare Indonesia's position with other countries that experience a resource curse. This study uses a comparative qualitative approach with secondary data from the Corruption Perceptions Index (CPI) 2018–2024, World Bank reports, and UNDP. The analysis focused on comparing indicators of corruption, governance, and economic performance in four resource-rich countries. The findings show that although Indonesia has a higher CPI score than Nigeria, Venezuela, and the DRC, public perception of corruption remains high due to the contrast between natural wealth and development achievements. The four countries show a similar pattern: weak institutions, rent politics, and elite dominance in natural resource management. Indonesia still has the opportunity to improve natural resource governance through strengthening regulations and transparency, so that it does not fall into a more severe resource curse trap. The phenomenon of resource curse is not only related to the amount of natural resource wealth, but also greatly influenced by the quality of institutions and governance. The study emphasizes the need for institutional reform, transparency in natural resource management, and a strong anti-corruption framework to ensure that natural resources are a blessing in disguise