Higher prices for oil, gas and mineral resources have again raised questions about how exporting countries can counter the challenges of resource curse. International experience managing the risks of resource curse has varied. Summarising the continuing discussion on meeting the challenges of the resource curse. this paper addresses four questions: What are the positive and negative effects of high oil, as and mineral prices on exporters? What have been the experiences with managing natural resource revenues? Can good institutions ensure that natural resource revenues have a positive impact on development? And what is the direction for the way forward? We argue that the current emphasis on institutions' as a potential solution has largely ignored under what conditions institutions are formed and changed. (c) 2007 Elsevier Ltd. All rights reserved.