availability of adequate natural resources is not adequate for economic growth. discuss.?

Answer 1

"natural resources" is a broad term - can include oil, gas, minerals, metals, precious stones, fertile land, natural water network, even beautiful spots for tourism.

Having adequate natural resources by itself doesn't guarantee eco. growth - a country needs to know what to do with it, how to use it for 'sustainable' growth....that's the buzzword today.

The initial plan would be to exploit the strongest of the resources, and use the revenue generated to boost other sectors.

Another very important thing is diversification - not putting all your eggs in one basket. It isn't enough to bank only on these natural resources - things like oil, metals etc aren't renewable. Ideally a country should take a long-term view to determine how to reduce excessive dependence on any one sector to created a more balanced economy. That way, even if one sector underperforms, the negative impact can be offset by other sectors.

Answer 2

Singapore has no natural resources except its harbour and its location in a main shipping lane, but it has grown spectacularly fast economically since independence in 1965. Why? I suggest: economically good governance, democracy, a peaceful attitude among its people (human moral values based on sound spiritual principles), resourcefulness and adaptability of the people (willingness to work, willingness to learn [e.g. both English and computerese]).

Afghanistan has gorgeous mountains that would be a superb basis for toursim-led economic growth but they have not got the first requirement for economic progress which is peace and stability, nor the second which is a government which allows business to flourish. It's not about Islam -- Dubai is Islamic and flourishing and even Kyrgyzia is making a decent stab at getting there -- but the Afghanis have been interpreting it in a way that is harmful for the economy.

In the modern world where knowledge and 'systems' and being "wired" infrastructurally are the basis of the economy, natural resources are almost irrelevant.... and if they have the effect of raising your real exchange rate can actually be harmful.

International trade is essential. South Africa under apartheid had plenty of natural resources (food, gold, diamonds, pretty much everything except oil) but very low growth in the later years because the boycott cut them off from international trade. Trade ensures that everyone's competing by doing most what they do best.

Britain's growth was low during the years after 1977 when oil production was rising and has been faster than the European average since 1992 when oil production was falling. Why? One reason is that she stayed out of the Euro. Messaage: a sensible (floating) exchange rate is another essential requirement. Price is the #1 signal and a economy needs to give its consumers the right signals about prices of imports and exports with a free exchange rate.

Another vital matter is predictable pro-market business law. The biggest problem with doing business in Kazakhstan, for example, is that so much is decided by the whim of administrators. If corruption is inevitable, at least ensure that government ministers make money by giving contracts to their own companies that are in any case competitive, as (used to be, anyway, when it was a poorer country) in Malaysia....not thhrough backhanders.

Answer 3

Apart from Natural resources, the next biggest things required for Economical growth are:
a) Local political will & positive mindful attitude.
b) Patriotism and killing intinct of people to achieve goals

Answer 4

You need more than natural resources. I am from a country in south America which has more minerals(gold, diamond, bauxite etc) and is even bigger than some of the countries in the Caribbean, so big that they can fit in my country. Yet we borrow alot of money from them. Their is more to ones economy than natural resources

Answer 5

i fully agree shalom's view in this question