There are numerous examples where this extent is shown, the first being the Middle East. The Middle East has always had a rich abundance of natural resources, the oil industry dominant the area's economy. Between 30 and 40% of the entire world’s energy comes from oil and Over half the world’s oil is in the Middle East. Countries with carbon-based economies and lifestyles or with few or no fossil fuels of there own are dependent on the region for exports. Middle Eastern economies range from nations being very poor (such as Gaza and Yemen) to extremely wealthy nations (such as UAE and Saudi Arabia). Overall, as of 2007, according to the CIA World Fact book, all nations in the Middle East are maintaining a positive rate of growth and so are relatively economically developed. The Middle east has a relatively low percentage of human resources (40%) in the composition of there wealth compared to other countries. Thus we can presuppose the Middle East’s natural resources are essential to a countries economic development.
Another example is Russia the mineral-packed and the vast oil, gas, coal, and timber reserves of and the make Russia rich in natural resources. Oil and gas exports continue to be the main source of hard currency. Russia is a leading producer and exporter of minerals, gold, and all major fuels. The Russian fishing industry is the world's fourth-larges. Imports from Russia to the USA were $19.4 billion dollars last year. During the transition to market economy The Soviets underwent the ‘Brain drain’ in which Some scientists, doctors and teachers fled to the West This depleted there Human resources making them fully reliant on there Natural resources. Fortunately the plentiful supply of natural resources has allowed it to become economically developed and the powerful superpower it is today.
Although there are some examples, which suggest it is simply Natural resources that are need for economic development, there are others that disprove this. The first is Japan. Japan has inadequate to support its growing economy and large population. Although many kinds of minerals were extracted throughout the country, most mineral resources had to be imported Post war. Yet with this lack of natural resources Japan has become a highly industrialized nation, which leads in electronic technology across the world and in such fields as computer-aided design and computer-aided manufacturing (). This case study suggests that natural resources are not essential for countries, with a high percentage of human resources, economic development.
Central America is another case study that disproves the statement, The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $46,000. However they also an abundance of Natural resources include its minerals, energy, land, water, and biota. These renewable and nonrenewable resources are used to enhance the already flourishing economic. So Countries can become Economically developed due to both Human and Natural resources, but countries with both become even more developed and may become some of the most economical developed Superpowers.
Whilst investigating this statement the resource curse theory must be explored, this is a theory which, suggests that nations which have rich natural resources may fail to develop in other sectors, ultimately bringing about financial problems The or the paradox of plenty can be partly explained by the phenomenon called the , where in the revenues from natural resource exports damage a nation’s productive economic sectors by causing an increase of the real exchange rate and wage increase. The exports from the Natural resources would make the country’s currency go up in value against other currencies, making your other exports more expensive and less attractive. The resource curse theory is clearly visible in Africa where areas, that have an abundance of natural resources, have been torn by civil strife, and suffer from endemic corruption (Nigeria). This theory Suggest that it is not natural resources that makes a country become economically developed, If anything it is a burden Upon then. Consequently Suggesting Human resources are more valuable assets in developing a country economically.
I can conclude that The best solution for a country is a ratio of natural resources to Human resource, Like USA, so they have two means of steady economic development incase of crashes in the market. I believe the Curse theory Is only relative two third world countries where they can be exploited by other countries and not maximize the sale Of the Natural resources available. Finally there is an extent to which natural resources are beneficial to a countries economic development however they are not a necessity.