The problem is that the natural resources that poor countries possess, due to their very underdeveloped condition, do not have the capacity to exploit them, so it is the large transnational companies from the more developed countries who come to those countries and exploit the wealth, without However, it should be noted that the laws in poor countries often favor these transnational companies for which natural resources are extracted and the price they pay is low, that is, natural resources are taken at free prices, or royalties are symbolic Such is the case of the mining exploitation in Guatemala, specifically the mineral such as nickel, gold.

Regarding democracy, effectively the governments of underdeveloped countries lack legitimacy in that public policies only favor the elite groups of society, which is why the vast majority of society are excluded from the benefits of democracy. exploitation of natural resources, for which the irrational use of resources undermines the foundations of democracy since resources are not for the benefit of society but of national and international business groups.

Natural resources affect democracy indirectly as an intervening variable.

Further readings:

1) Natural Resources: Curse or Blessing?

Frederick van der Ploeg

Journal of Economic Literature

Vol. 49, No. 2 (JUNE 2011), pp. 366-420 (55 pages)

Published By: American Economic Association

2)Addressing the Natural Resource Curse: An Illustration from Nigeria

Xavier Sala-i-Martin and Arvind Subramanian

IMF Working Paper

There is no inherent contradiction between natural resource endowments and democracy, in the sense that oil, for example, need not hinder democracy. That said, democracy is necessary for the good governance of political institutions and good governance in government is the key to sustainable development. Good governance in government is achieved via processes that promote transparency, openness, predictability, participation, accountability, political legitimacy, freedom of association and participation in the process of governance, an established legal outline based on the rule of law, the independence of judiciary to protect human rights and freedom of information and expression, etc.

Francisco Lemus Olivier Serrat Kazi Mohammad Mahbobor Rahman Thank you all for sharing your ideas))))