How can countries escape the natural resource curse? And to what extent do cohesive and democratic institutions facilitate this process? In a new CGD working paper, we look at Nigeria—often seen as the prime example of a country cursed by its wealth. We show that when political institutions are cohesive and power is shared among the diverse groups in a multi-ethnic society, political contests over resource revenues are less likely to be violent. What produces cohesive institutions? Democratic elections.
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