The paper provides an alternative explanation for the ""resource curse"" based on the income effect resulting from high government current spending in resource rich economies. Using a simple life cycle framework, we show that private investment in the non-resource sector is adversely affected if...

Intro -- Contents -- I. INTRODUCTION -- II. RECENT DEVELOPMENTS IN NATURAL RESOURCES AND GOVERNANCE IN BOTSWANA -- III. METHODOLOGY -- IV. EMPIRICAL RESULTS -- V. POLICY IMPLICATIONS -- VI. CONCLUSION -- REFERENCES.