Tackling the Resource Curse via Fintech and Green Finance

While natural resources hold significant potential for economic growth and development, in many resource-rich countries, this blessing has transformed into the "resource curse," leading to over-reliance on raw material exports, corruption, economic instability, and weakened governance institutions. The BRICS countries (Brazil, Russia, India, China, and South Africa), as emerging economies, possess vast natural resources but face significant challenges in achieving sustainable development. In this context, green finance¹ and innovative financial technologies (FinTech)² have emerged as key tools for transitioning to a green economy and addressing the challenges posed by the resource curse. This paper, grounded in Rational Choice Theory and Path Dependency Theory, explores how leveraging the potential of FinTech and green financial development can mitigate the negative effects of the resource curse in BRICS nations and facilitate the transition towards sustainable development. The findings of the study indicate that the adoption of innovative financial policies and the strengthening of digital financial infrastructures play a crucial role on enhancing transparency, accountability, and optimal resource allocation in these countries. This can pave the way for a shift from resource-dependent growth models to sustainable development pathways by fostering a robust financial ecosystem.

کلیدواژه ها:

Resource Course ، BRICS ، Green Finance ، FinTech ، Sustainable ، Development