POLITICAL STABILITY AND ECONOMIC OUTCOMES: ANALYSING THE GEOPOLITICAL DYNAMICS OF GOVERNANCE IN MINERAL- RICH NATIONS OF THE GLOBAL SOUTH

Abstract

This article explores the dynamics of political stability, governance, and economic development in mineral-rich developing countries, which often face the "resource curse." This paradox occurs when an abundance of natural resources hinders rather than promotes economic growth and stability. The study emphasizes the role of governance systems in shaping these outcomes, as effective governance can either exacerbate or alleviate the challenges posed by resource wealth. By analyzing a select group of mineral-exporting nations—Nigeria, Angola, and Chile—the research identifies key correlations suggesting that improving governance is critical for maximizing the benefits of natural resources and enhancing the resilience of these economies. An extensive literature review, secondary data, and document analysis were conducted to examine the influence of governance models on resource management and development. The main finding of the study is that countries with strong governance structures, particularly those promoting accountability, transparency, and the rule of law, are more likely to successfully harness their resource wealth for sustainable development. The study recommends that resource-rich nations prioritize governance reforms to effectively manage natural resources and ensure long-term economic stability.