Resources and Development in an economy :: Economics

Resources and Development in an economyResources and Developmenta)Resources influence the anatomical structure and progress of an economy. Ifsomething is considered a preference it is potentially of economicbenefit. However there are three differing types of resources, and itis the relative abundance of all these that dictates the economicstructure. It is debatable whether the armorial bearing of one resource, e.g.Coal (a natural resource), leads in itself to economic sustainabilityand strength. There are human, capital and natural resources. Humanresources represent the quality and quantity of the workforce and isinfluenced by factors such as education and demographics. Capitalresources come in the form of accumulated wealth in assets such asindustry or infrastructure. lifelike resources, such as oil, coal ortimber, are primary materials which are of utility to man, which manhas the willingness (i.e. it will either be of use in other industrialprocesses or will gain a profit), and ability to exploit. These threefactors combine to provide the backbone to an economy, although theyoften rely on one another, especially the industries on the workforce,to function properly. Natural resources are arguably the kick offnecessity of the other two, and is more complex as there are manytypes of natural resource, both(prenominal) infinite such as timber, and finitesuch as crude oil. There is therefore the issue of decision-makingregarding sustainability, and the appropriateness of using aparticular resource for a particular purpose, when a suitablereplacement is available, and this often alters which naturalmaterials are regarded as resources.b)Logic would suggest that the presence of natural resources in acountry has a positive relationship with its economic development.There are many examples that support this theory, such as with themost developed countries of Western Europe, and historiedanthropologists such as Rostow assume it to be true. However there iswell su pported evidence that natural resources are not at all substantial for economic development, and with the global politicalstructure having evolved the way it has, anthropologists such aGunder-Frank suggest that natural resources can be more of a hindrancethan an prefer regarding the improvement of an economy.In his model for economic development Rostow assumes that naturalresources are necessary for economic progression through thepreconditions for takeoff and takeoff stages of development. Thiswas originally true in the fortune of the first industrialised countriesin the 18th century. The development of the UKs wool, and later coalindustries, directly triggered the processes that have led to the UKsdeveloped economy today.However Gunder-Frank would argue that as soon as the firstindustrialised nations became rich and began looking to exploit wealth