There are some countries that do not have natural resources that do well in the interdependent, global marketplace. Some developing nations that have proven that they can be successful without resources by exporting manufactured goods include Taiwan, Korea, and Singapore. Conversely, there are nations that are inundated with vast natural resources, such as the economically stimulating oil and gas, which do not perform well in their economic development. Although the standard of living may increase for some, there is no economic growth that can sustain itself over time, such as Mexico. When countries gain money from their economic gains from selling their resources, they need to be cautious as to how they spend this money. All of the revenue cannot be spent in a short period of time or the total value of the nation’s capital declines. Another important factor is that an investment needs to be made in diversification of a skilled workforce and education at the secondary level so that other economic sectors can grow once the natural resource aspect of wealth has been diminished.
This article would be included in this section to address the interdependence of national economies on each other. The global marketplace is interdependent on the natural resources of the nations that have them as well as how they are used and how those nations react after the resources are depleted .
The examples that were used in the article reflect well with the information that was shared in the text along with my knowledge of events in the world. If a developing nation has a resource that is desirable to other nations and it can sell it, the immediate thought is the benefit that the income will have to the government and the nation. Usually, the thought are not focused on long-term economic development and education. There are immediate needs, and these are the ones that are typically addressed first. By the time these needs are met, if even just a small percentage, there is often little left of the natural resources and the country is back where it started, at best, economically .
Works Cited
Friedan, Lake, and Schultz. World Politics: Interests, Interactions, Institutions. 2nd edition. W. W. Norton & Company, n.d. Print.
Macartan Humphreys, Jeffrey D. Sachs, and Joseph E. Stiglitz. What Is the Problem with Natural Resource Wealth? n.d. Web. 23 March 2013.
