How Natural Resources Help In The Development Of The Country?

Some poor countries of Africa and Asia have meager endowments of natural resources, and such land and minerals as they do possess must be divided among dense populations. Perhaps the most valuable natural resource of developing countries is arable land. Much of the labor force in developing countries is employed in farming. Hence the productive use of land with appropriate conservation, fertilizers and tillage will go far in increasing a poor nation's output.

Moreover, landownership patterns are a key to providing farmers with storing incentives to invest in capital and technologies that will increase their land's yield. When farmers own their own land, they have better incentives to make improvements, such as in irrigation systems, and undertake appropriate conservation practices.

Economists suspect that natural wealth from oil or minerals is not an unalloyed blessing. Some countries like the United States, Canada and Norway have used their natural wealth to form the solid base of industrial expansion. In other countries, the wealth has been like loot subject to plunder and rent seeking by corrupt leaders and military cliques.

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