What are the positive and negative effects of natural resources on the environment? (specifically natural resources used in Europe)
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Answer:
Natural resources undoubtedly play an important role in the economy of many countries. Whether their contribution to development is positive or negative is, however, a contested and difficult question. 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. With many developing countries being highly resource dependent a deeper understanding of the sources and solutions to the potential problem of natural resources is highly relevant. This brief reviews the main issues and points to key policy challenges for turning resource rents into driver rather than a detriment of development.