What Are Natural Resources?

Natural resources are those that come from nature and are mostly used unchanged. True wealth of a nation includes its natural resources. They serve as the foundational elements for the production of various forms of capital. Natural resources contribute to rising tax revenues, income, and lowering poverty. Natural resource-related businesses create jobs and frequently serve as the backbone of the economies of disadvantaged regions. The significance of natural resources and their contribution to the country's economic development will be covered in this article.

 

•    The earth's natural resources are those that exist there but are unaffected by human activities.

 

•    Natural resources include things like stone, sand, metals, oil, coal, and natural gas.

 

•    The distribution of natural resources may be a major cause of economic and political strife both inside and between states.

 

•    This is particularly true when there are increasing scarcities and shortages (resource depletion and overuse).

 

•    Natural resource extraction frequently results in abuses of human rights as well as environmental harm.

 

Depending on their availability, natural resources can be divided into two categories:

•    Resources that can be used in a number of ways and are perpetually available are called renewable resources. Examples are the air, water, sun, and forest.

 

•    Non-renewable Resources: Non-renewable resources are those whose availability is currently declining and whose supply is constrained due to their non-renewable nature. Examples include fossil fuels and minerals.

 

•    The most significant factor determining the growth of an economy is access to natural resources.

 

•    Natural resources include things like land area, good soil, abundant forests, a healthy river system, mineral and oil resources, a good climate, and so on.

 

•    Natural resource wealth is essential for economic expansion. A nation without sufficient natural resources might find it difficult to advance quickly.

 

•    However, while plentiful natural resources are a requirement for economic expansion, they are not a sufficient one.

 

•    In underdeveloped nations, natural resources are underutilized, wasted, or misused. This is the only factor contributing to their backwardness.

 

•    On the other side, albeit they lack an abundance of natural resources, nations like Singapore, Japan, and others are among the most developed in the world.

 

•    These nations have shown a dedication to protecting the supply of resources, making every effort to manage resources, and reducing resource waste.

 

•    Natural resource utilization and exploitation depend on human resource skills and talents, the technology employed, and the availability of funding.

 

•    A nation's economy advances when it has a talented and educated workforce and a wealth of natural resources.

 

•    Although the direct economic utilization of natural resources to satisfy human needs is relatively limited, their societal economic value is increased through their conversion into commodities and services.

 

•    The combination of productive activities carried out by several economic sectors results in the conversion of natural resources into useable commodities and services, assisting the total economy in achieving sustainable growth. The basis for sustainable development is provided by this.

 

•    The shift from government to governance has highlighted how crucial it is to involve a variety of stakeholders in decision-making, knowledge generation, and the execution of natural resource and environmental policies.

 

•    Maintaining resource stocks, quality, and a number of steady flows over an endless length of time are the main goals of sustainable use of renewable resources.

 

•    Non-renewable resource consumption cannot be sustained due to their limited reserves, but governments that utilize them can attain sustainability by investing the income they provide in other types of capital.

 

•    Sound development planning requires accurate resource value and accounting. Good governance and transparent institutions are also necessary.

 

•    A potent method for encouraging sustainable natural resource management and consumption is internalizing the environmental costs of resource extraction and use in resource prices.

 

•    Policies that formalize and codify revenue management practices are necessary to maximize the value of natural resources for long-term growth and development and prevent the resource curse. 

 

Natural resources must be managed sustainably due to their inherent value. In order to ensure that resources contribute to the long-term economic development of countries rather than just short-term revenue production, government plays a crucial role in establishing legislation.