Dutch disease

Dutch disease is an economic phenomenon in which the discovery and exploitation of natural resources deindustrializes a nation's economy. In the given scenario, the value of the country's currency rises (making manufactured goods less competitive), imports increase, exports decrease, and productivity falls. The phemomenon was first observed in the Netherlands in the 1960s, when large reserves of natural gas were first exploited. There is now a substantial body of research on the topic.