How the development of resources create major problem in a country
Answers
Today, the problems facing developing countries revolve around what are generally called “structural constraints” to development. First among these is geography—not just in the historical sense described above—but also in the more contemporary aspect that a modern economy cannot function without a division and diversification of labor. Thus, countries with small populations may have trouble developing and gaining access to markets, while landlocked countries may struggle to integrate with global markets and expand their economies.
Other common constraints on development are high economic poverty, hunger, high mortality rates, unsafe water supplies, poor education systems, corrupt governments, war, and poor sanitation. These factors all combine to create what the World Bank calls “poverty traps”—cycles that must be broken for countries to develop.
Countries can avoid poverty traps, however, with strong policies. Likewise, geographic advantages do not always result in sound development in cases when governments squander valuable natural resources. The World Bank, therefore, recommends that countries focus on six areas of policy to improve chances of development:
Investment in education and health
Increasing productivity of small farms
Improving infrastructure (for example, roads)
Developing an industrial policy to promote manufacturing
Promoting democracy and human rights
Ensuring environmental protection
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