Book Chapter
Natural Resources, Human Capital, and Growth

This chapter examines the role of human capital investment in lowering the growth of resource-abundant countries. It is shown that resource abundance leads to high initial levels of income inequality, making it difficult to generate a virtuous circle of human capital accumulation and equitable growth. However, this virtuous circle is achievable if governments can resist the temptation to ignore the quality of schooling and pursue a capital intensive growth strategy.