Natural Resources 1
Using Africa’s Natural Resources for Development
Emily J. Taylor
ECON 200: Microeconomics
Jamie Muter
February 26, 2016
Natural Resources 2
Using Africa’s Natural Resources for Development
Every country has natural resources, some have more of one type then
others, but nonetheless we all have natural resources. Africa has many types of
natural resources to include, but not limited to, diamonds, crude oil, coal, and
gold. The question is, why is this material rich continent still struggling to thrive
and be successful? There are still parts that are considered third world. They lack
every day amenities that some of us take advantage of, like education and medical
aid. So what can the countries on this continent do to thrive by using their natural
resources? We will be looking into what research has been done, how human
development would prosper through the profits of natural resource productions,
and what can be expected from the outcome once it’s under production.
Bill and Melinda Gates Foundation teamed up with the African
Development Bank to come up with a plan on how natural resources can better
the countries social impact. This report covers converting extractives resources
into human development, timing and magnitude of newly discovered natural
resources, natural resources to human development by the publics spending, and
fostering human development progress through industry activities. (Delivering on
the Promise, 2015). This documentation and research breaks down to show the
steps and how this plan can be beneficial in aiding poverty countries in Africa to
thrive and come out of poverty and flourish.
Focusing on the first part of the report allows one to see the process in
how to go about extracting the minerals/resources and where they go once they
are harvested. Once extracted from the source, the extractive companies will give
Natural Resources 3
a portion to the government for the government revenue. A picture of this process
will show how the government will contribute to public spending as well as how
the industries extracting the minerals/resources will be using them as well. Both
of which will ultimately contribute to the aid of human development. (See chart
1.)
Chart 1
