Importance of Natural Resources

Importance of Natural Resources essay

Natural resources were historically an important condition of the successful development of countries. The disparity in the access to natural resources predetermined, to a significant extent, the socioeconomic disparity in the development of Northern countries and Southern ones. In fact, the economic and technological development of countries and the difference in their development was driven by the availability of natural resources, which stimulated the development of technology and, therefore, economic progress of those communities and countries, which benefited from the available natural resources and the backwardness of those countries and communities, which lacked natural resources. Even though today the process of globalization makes natural resources available worldwide, but the world economy still depends on natural resources and those countries, which have access to natural resources, especially fossil fuels, such as oil and gas, can keep progressing fast, while those, which have limited opportunities to use natural resources are doomed to backwardness.

            Historically, natural resources played the role of the main driver of the economic development of nations (Deudney & Flavin 114). For example, coal mining and the availability of iron to Great Britain allowed the country to become one of the leaders in the world economy and conduct its industrial revolution successfully. Similarly the availability of natural resources became the major condition of the successful economic and technological development of other powers, including the US, France, Germany and others (Kraft & Kameniecky 158).

At the same time, the significant role of natural resources as the major driver of the economic development becomes obvious, when the availability of natural resources, their use and historical socioeconomic and technological development of countries is compared. In this regard, the disparity between North and South is particularly obvious (McCormick 214). For example, early civilizations emerged in Northern hemisphere of the world basically due to the availability of natural resources, such as iron ore, for example, which allowed people to start making first tools as well as weapon. At this point, it is worth mentioning early civilizations in Egypt, Mesopotamia, Greece, India and China, which were all located in Northern hemisphere due to the available natural resources, such as iron ores (Best 664). For example, the beginning of the early production of bronze boosted the technological and economic development of those civilizations. The further introduction of iron, steel and other materials based on the use of natural resources accelerated their economic and technological development even more. Moreover, even the early settlement of people were determined by their natural environment and availability of natural resources, such as water and fertile soil, which people used for their regular life and basic needs.

In the course of time, the role of natural resources increased even more because they became essential for the economic development of nations and fast technological progress (Lewis 245). At this point, it is possible to return to the time of the industrial revolution once again since the industrial revolution would be impossible without rich natural resources available to leading nations, such as Great Britain, France, Germany and the US (McCormick 148). The availability of such natural resources as coal and iron ore allowed them to boost their industrial production and develop transportation system, which, in its turn, accelerated trade within those countries as well as between those countries. At the same time, the rest of the world that had limited access to natural resources remained under-developed and suffered from technological and economic backwardness.

The role of natural resources as the major driver of the economic and technological development became even more evident in the 20^th century, when the traditional major powers, such as Great Britain, the US and others faced the tightening competition from the part of emerging economies of Southeast Asia (Kassman 149). In fact, the successful economic and technological development became possible due to the process of accelerated industrialization with the further transition to scientific, knowledge-based industries. The economic development of nations was therefore determined by the use of natural resources.

In this respect, it is possible to refer to the level of the energy consumption in the world in the 20^th century as well as today. The energy consumption is the major indicator of the level of economic and technological development of nations (Best 665). So far, the most developed nations have the highest level of the energy consumption, although they are trying to do their best to reduce this level to protect their environment and focus on the sustainable development (McCormick 124). However, the energy is still an essential condition of the successful economic and technological development as well as it is an essential condition of the maintenance of the competitive position of nations in the global economy.

At the same time, the lion share of energy in the world is generated by means of using natural resources, especially fossil fuels, like oil and gas. The share of renewable or alternative sources of energy is still low, whereas the major source of energy remains to be fossil fuels (McCormick 195). The availability of fossil fuels becomes the major factor that determines the competitive position of nations in the global economy. At this point, it is possible to refer to the crisis of the mid-1970s, which was triggered by the refusal of the Middle Eastern countries to sell oil at the low price (McCormick 202). This energy war resulted in a profound downturn in the economic development of the US and other well-developed nations. Today, the dependence of nations on fossil fuels is still very significant.

On the other hand, the availability of oil and natural gas allow countries to boost their economic development, even if they are mere exporters of natural resources. At this point, it is possible to refer to countries of the Persian Gulf region, which used to be poor, under-developed nations, while today, they have become prosperous, technologically advanced nations that play an important part in the global economy. Their progress was the result of the oil export, which boosted their development and allowed them to increase their role in the world economy since they become the major suppliers of oil to the global market (McCormick 215). At any rate, decisions taken by Saudi Arabia and other oil exporting countries located in the Persian Gulf have a considerable impact on the oil price and situation in the global economy because oil is still the major source of energy, which is required for the fast economic development and maintenance of stable functioning of well-developed economies. In such a way, the oil production and consumption has become the major driver of the economic development in the second half of the 20^th century and still remains today. Hence, oil is one of the most valuable natural resources today, which is essential for the normal existence of the modern civilization because without oil the current level of the energy production would be impossible, while the modern civilization will not survive without the high level of the energy production at the moment.

On the other hand, oil is just an example of the great significance of natural resources in the economic development of nations. The consumption of natural resources have become a norm that leads to the destructive impact of human economic activities as well as regular, everyday life activities on their environment (McCormick 156). For example, the consumption of timber has triggered the deforestation of many regions of the world that raises the problem of the threat to the natural environment. In addition, the use of natural resources leads to the pollution of the environment but the real problem of the modern world is the dilemma which virtually all countries face. On the one hand, they need natural resources to boost their economic and technological development, whereas, on the other hand, the use of natural resources leads to the further deterioration of the environmental situation.

Thus, today, nations need to develop new policies oriented on the wise and effective use of natural resources. However, what proves to be beyond a doubt is the great role of natural resources in the development of nations. Historically, naturally resources played the key part in the economic and technological development of countries and today they still play the crucial part in the development of nations because they determine the competitive position of nations in the global economy.