Resource Governance, Economic Upgrading and Political Settlements in Colombia—No Curse Without Development

ABSTRACT This article challenges the prevailing resource curse explanations for Colombia's failure to achieve inclusive development through its natural resource wealth. It argues that historically evolved power balances are at the root of institutional failures to achieve higher value‐added growth. By analysing national, transnational, spatial, and geographical developments affecting the interdependency between power and institutions, this article finds that Colombia's political settlement, where landed elites and international actors hold significant power and the state has limited capacities, explains disappointing development outcomes. This power structure has led to a focus on low‐productivity sectors and a failure to effectively channel resource rents into high‐value activities, perpetuating Colombia's position at the lower end of global value chains. The article contributes to a deeper understanding of the complex interplay between power, institutions, and resource governance in shaping economic development outcomes.