Part 8/16:
In the traditional case of the Netherlands, discovery of natural gas led to soaring wages in the energy sector, which boosted incomes in related services but simultaneously decimated other industries. Wages in manufacturing and agriculture could no longer compete, causing these sectors to shrink or vanish. Over time, the economy becomes vulnerable—mega-dependent on the resource sector and lacking diversification.
Russia’s Unique, Multi-Layered Dutch Disease
Russia has been suffering from a form of "double Dutch disease," or nested Dutch disease—a complex layering of the syndrome across both macro and micro levels.