Andersen and Aslaksen (2011) find that the natural resource wealth only affects leadership duration non-democratic regimes. Resource are known as capital converted to commodity inputs to infrastructural capital processes. Overall the literature points to potential economic as well as political problems connected to natural resources. To control and maintain economic development and social-wellbeing of the people, there must be some laws that guild the use of natural resources. Superficially, the answer to this question would obviously seem to be “yes”. There are two types of natural resources. As Rick van der Ploeg (2011) puts it in a recent overview: “the interesting question is why some resource rich economies [.] Evidence from a Natural Experiment in West Africa, Doppelhoefer, Miller and Sala-i-Martin (2004). Sachs, J. D. and Warner, A. M., 1995. This will help to maintain the environmental balance and satisfy the needs to the fullest. “Do Natural Resources Fuel Authoritarianism? The constitution of the Federal Republic of Nigeria 1999 as the National Legal Order, recognizes the importance of improving and protecting the environment and made provision for it. The natural resources of a country influence not only the economic growth, but also the economic structure. This will gradually help to enhance the economy of a country. Mehlum, H., Moene, K. and Torvik, R., 2006. Primary exports consist of agricultural raw materials exports, fuel exports, ores and metals, and food exports. In principle, Dutch disease could be at work without this hurting growth. NBER Working Paper 9804. Development & Education, Natural Resources, Stockholm School of Economics, KAW, Sveavägen 65, Stockholm, Sweden The resulting reallocation of capital and labor to the non-tradable sector and to the resource sector causes the manufacturing sector to contract (so-called “de-industrialization”). Without these tools, we will not be able to move ahead in our daily and professional lives. Andersen, J. J. and Aslaksen, S., 2011. For example , Coal will be available only for 252 years. By now, it is a well-established fact that there is a robust negative relationship between a country’s share of primary exports in GDP and its subsequent economic growth. Natural Resources, Corruption, and Economic Growth,” IMF Working Paper No. Even if it is often noted that Botswana had relatively good institutions already at the time of independence, it was still a poor country with no democratic history facing the challenge of developing a country more or less from scratch. Human resource are important for development of a country because 1. It is the world’s largest producer of cobalt (49% of the world production in 2009) and of industrial diamonds (30%).  Other theories have focused on the problems related to the increased volatility that comes with high resource dependence. Montague, D., 2002. Of course, the contraction of the manufacturing sector is not necessarily harmful per se, but if manufacturing has a higher impact on human capital development, product quality improvements and on the development of new products, this development lowers long-run growth. It is also a large producer of gemstone diamonds (6%), it has around 2/3 of the world’s deposits of coltan and significant deposits of copper and tin. “Constitutions and the resource curse,” Journal of Development Economics, Volume 87, Issue 2. 94(4). Desai, R. M., Olofsgård, A. and Yousef, T., 2009. The impact of the policy brought about the assessment and designing of any development project by the Environmental Agency (Babangida, 1992). The principal elements that must be mentioned concerning the natural resources are synthesized in the below figure (Fig. 1). 21, Issue 1. Such conclusions are unnecessarily pessimistic. The organic matter can be known as the remains of plants and animal. Even if these papers provide important insights and allow for the possibility of similar resource endowments having variable effects depending on the institutional setting, two major problems still remain. In short, resources have different effects depending on the institutional environment. Medicinal drugs derived from natural souces make important global contribution to health care of the people. If we do not have these resources, we would not have had any method to get all the materials which are required for the construction of the modern infrastructure. Durnev, A. and Guriev, S. M., 2011. Yet, the answer is far from that simple and one can relatively quickly come up with counterarguments: “Having natural resources takes away incentives to develop other areas of the economy which are potentially more important for long run growth”; “Natural resource-income can cause corruption or be a source of conflict”, etc. These resources are hydrogen and oxygen which are two inflammable gasses present in water, but there is no technology to use it from water (Sourabh,2012). al. Whereas non-renewable resources are those which cannot be produced again, such as fossilfuel timber etc, (Darner, 2009). When these resources get depleted due to the environmental problems we are, in fact, hampering the possibility of the existence of our future generation on earth. It is, for example, possible for a dictator to choose to enforce good property rights protection even if this is something typically associated with democracy. By saving the excess expenditure, we will also be able to improve our standard of living. The two categories of resources are biotic and abiotic resources. Maintaining these resources will help to open new opportunities which are essential for the economic development of a country. “Resource-Led Growth: A Long-Term Perspective”,Helsinki: World Institute for Development Economics Research. While the experiences of countries such as Bolivia and Venezuela are not as extreme their resource wealth in terms of natural gas and oil respectively seem to have brought serious problems in terms of low growth, increased inequality and corruption. “The Origins of American Industrial Success, 1879-1940,” American Economic Review 80. An attempt at studying a particular aspect of this question is the paper by Andersen and Aslaksen (2008), which shows that presidential democracies are subject to the resource curse, while it is not present in parliamentary democracies. These pollutants are harmful to all the exhaustible and inexhaustible natural resources. “Natural Resources: Curse or Blessing?,” Journal of Economic Literature, American Economic Association, vol. In turn, better institutions are more important in avoiding resource curse with precious metals and diamonds than with mineral production. To begin to answer this question it is useful to first review some of the many theoretical explanations that have been suggested and to see what empirical support they have received. “Unbundling the resource curse,” mimeo. In resource-rich countries with bad institutions incentives become geared towards “grabbing resource rents” while in countries where institutions render such activities difficult resources contribute positively to growth. What Is The Importance Of Universal Law Of Gravitation? When natural resources are wisely used in a sustainable manner, it gives a tremendous potential to accelerate economic development (Sourabh,2012). Man can earn, invest and save money from farm produce. Nowadays, people use sunlight to generate electricity. The empirical support for the Dutch disease and related mechanisms is mixed. At the same time, there are numerous countries that provide counterexamples to this idea. natural resources together with the most important interdependences and connections between the sustainable development and the natural resources. Being the second largest exporter of natural gas and the fifth largest of oil, Norway is one of the richest world economies. 48(5). These may get depleted if we do not utilize them properly. B.T. The United States is blessed with an unusual abundance of six natural resources. “What you export matters,” Journal of Economic Growth, Springer, vol. Boschini, A.D., Pettersson, J. and Roine, J., 2011. The effect is reversed for good institutions – gold and diamonds do more good than less appropriable resources. Classification of Natural Resources: can bedone in different criteria, such as the basis of origin. Ross, M.L., 2001. Human resource contains immense importance and plays a fundamental role in the development of a country. Examples of biotic resources are Timber, Petroleum, Fruits, Natural gas and wax etc, (Thompson,, 2003). The decrease in these natural resources will gradually make our planet unbearable for all living beings. The most well-known economic explanation of the resources curse suggests that a resource windfall generates additional wealth, which raises the prices of non-tradable goods, such as services.  This assumption has been criticized by, for example, Wright (1990), David and Wright (1997), and Findlay and Lundahl (1999) who all point to historical examples where resource extraction has been a driver for the development of new technology. At the same time, it has the world’s worst growth rate and the 8th lowest GDP per capita over last 40 years. There is nothing inevitable about the adverse effects of natural resources but resource-rich developing countries must face the challenges that come with having such wealth and use it wisely. The fuel we use for all the automobiles come from the inexhaustible natural resources like petroleum, coal, etc. Suslova, E. and Volchkova, N., 2007. », NATURAL RESOURCES, THEIR IMPORTANCE AND WAYS OF CONSERVATION. “More Oil, Less Democracy: Evidence from Worldwide Crude Oil Discoveries,” The Economic Journal, 121. Tsui’s findings also support political resource curse story. In short, the natural resources are very important for our existence as well as for the growth of the country. Based on World Development Indicators database (World Bank).  Its robustness has been confirmed in, for example, Gylfason, Herbertsson and Zoega (1999), Leite and Weidmann (1999), Sachs and Warner (2001) and Sala-i-Martin and Subramanian (2003). We live in an industrialized world. The reason for this depletion is the improper and excessive use and the growing population, that put a tremendous strain on the nature. This type of electricity production is good for the environment because no hazardous by-products are produced during this process. Arguably countries like Australia, Botswana and Norway have gained enormously over long periods from their natural resources, others like Azerbaijan, Kazakhstan and Russia have gained in economic growth terms but maybe at the expense of institutional development, while in some countries, such as Angola and Sierra Leone, natural resources have been at the heart of violent conflicts with devastating effects for society. Hausmann, Hwang and Rodrik (2007), provide evidence that export product sophistication predicts higher growth. The entire progress of a nation depends on the existence of natural resources. “InstitutionBuildingand Growth in Transition Economies,” CEPR Discussion Paper 5718, Centre for Economic Policy Research:London. This means that the theories cannot account for the great heterogeneity of observed outcomes, that is, it cannot explain why some countries fail and others succeed at a given level of resource dependence. Our existence is inevitable without these resources. But no matter what we think we know about the optimal policy it still has to be implemented and if the institutional setting is weak the problems are very real.