Brunei's Unique Economic System

Brunei is a small country in Asia known for its welfare state, where the government pays for almost everything, including healthcare, education, and housing. This is made possible by the country's petroleum and natural gas industry, which has made Brunei one of the richest economies in Southeast Asia. However, the dependence on oil and gas poses challenges, such as poor growth in non-resource sectors, difficulties in diversifying the economy, and wasteful spending. These issues are part of the resource curse concept, which compares oil-rich economies to lottery winners who struggle to manage their newfound wealth.