Natural Resources

Definition

Natural resources are raw materials or components that occur naturally within the environment and can be used for economic gain. They include items like minerals, water, forests, and fossil fuels, which play a crucial role in the global economy. The availability and management of these resources significantly influence international relations, economic power dynamics, and debates surrounding globalization.

5 Must Know Facts For Your Next Test

1. Natural resources are unevenly distributed around the world, leading to geopolitical tensions and competition for access.
2. The extraction and trade of natural resources have significant environmental impacts, contributing to climate change and biodiversity loss.
3. Countries rich in natural resources may struggle with governance issues and corruption, often referred to as the 'resource curse.'
4. Technological advancements can influence how natural resources are exploited and managed, impacting global supply chains.
5. In the context of globalization, the demand for natural resources drives economic growth but also raises ethical questions regarding sustainability and equity.

Review Questions

• How do natural resources influence the power dynamics between nations in the context of international relations?
  • Natural resources significantly shape power dynamics between nations as they determine economic strength and leverage in negotiations. Countries with abundant resources often hold strategic advantages, allowing them to influence global markets and policies. This resource wealth can lead to both cooperation and conflict as nations compete for access and control over these valuable assets.
• Discuss the implications of the resource curse on countries with abundant natural resources.
  • The resource curse presents serious challenges for countries with abundant natural resources, often resulting in economic instability, corruption, and poor governance. While these countries may have potential wealth from their resources, mismanagement or a lack of investment in other sectors can hinder overall development. This paradox illustrates how resource-rich nations may struggle to convert their wealth into broad-based economic growth or societal well-being.
• Evaluate how the management of natural resources can impact globalization and economic interdependence among nations.
  • The management of natural resources plays a critical role in shaping globalization and the interconnectedness of economies. Effective resource management can foster sustainable development and cooperation among nations, facilitating trade agreements that benefit all parties involved. Conversely, mismanagement or exploitation can lead to environmental degradation, social unrest, and economic disparities that threaten global stability. Ultimately, the way natural resources are handled not only affects individual countries but also influences international relations and the health of the global economy.

Related terms

Renewable Resources: Resources that can be replenished naturally over time, such as solar energy, wind energy, and timber from sustainably managed forests.

Non-renewable Resources: Resources that exist in finite amounts and cannot be replaced within a human timescale, like coal, oil, and natural gas.

Resource Curse: The paradox where countries rich in natural resources often experience less economic growth and worse development outcomes due to various political and economic factors.