Why Oil-rich Countries Struggle with Modernization

Oil-rich countries tend to face challenges in modernizing due to relying on oil revenue without investing in areas like education, infrastructure, and market-friendly rules. Countries like Nigeria, Venezuela, Iran, and Kuwait show dysfunction and corruption stemming from this lack of diversification. In contrast, successful nations like South Korea, Singapore, and Japan, lacking natural resources, focus on human capital, infrastructure development, and market regulations, leading to economic prosperity.