In simple terms resource curse results from inefficient distribution of wealth which is generated from harvesting the aplenty resource in that country. As a consequence, wealth aggregation in resource rich pockets of economy takes place, the other sectors suffer and become inefficient, as bulk of economic activity (as calculated by GDP) takes place around that resource. The political consequence being that the state becomes irresponsive to the needs of people as state expenses are met by wealth from resource rather than tax collections, and in turn people also gradually start looking for doles from state rather than substantive reforms in economy. This all leads to poverty, corruption and an inefficient economy, hence the name resource curse.
For further reading:
Resource Curse (Investopedia)
http://www.investopedia.com/terms/r/resource-curse.asp
For further reading:
Resource Curse (Investopedia)
http://www.investopedia.com/terms/r/resource-curse.asp
The paradox of plenty (The Economist)
http://www.economist.com/node/5323394
Oil to Cash: Fighting the Resource Curse through Cash Transfers (Center for Global Development) [Video]
http://www.youtube.com/watch?v=b8f7MSOLMRk
Current Affairs | Economics | Banking | UPSC | IAS | IPS | IFS | IRS | PCS