Resources and Development in an economy :: Economics

Resources and Development in an economyResources and Developmenta)Resources influence the structure and progress of an economy. Ifsomething is considered a resource it is potentially of stintingbenefit. until now there atomic number 18 three differing types of resources, and itis the relative abundance of all these that dictates the scotchstructure. It is debatable whether the presence 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 much(prenominal) as education and demographics. Capitalresources get into in the form of accumulated wealth in assets such asindustry or infrastructure. Natural 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 p rofit), 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 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 suitableswitch 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 increment.There are many examples that support this theory, such as with themost developed countries of Western Europe, and renownedanthropologists such as Rostow assume it to be true. However there iswell supported evid ence that natural resources are not at allessential for economic growing, and with the global politicalstructure having evolved the modal value it has, anthropologists such aGunder-Frank suggest that natural resources can be more of a hindrancethan an advantage 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 case 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 bountiful and began looking to exploit wealth