As the planet continues to evolve from the devastating effects of global warming and overproduction of harmful wastes, natural resources necessary for people’s well being are becoming more scarce. With so few natural resources left, these commodities increase in value, thus making them more expensive to attain on the market. Although most of the world is struggling to gain access to such natural resources, some countries are fortunate enough to have a hidden reservoir of natural resources that they can use to their advantage. Here are the top three developing countries with natural resources.
3 Developing Countries With Natural Resources
- The Democratic Republic of the Congo: Although the Democratic Republic of the Congo is still battling many economic and civic issues that emerged out of a series of political conflicts in the 1990s, the country has benefited from its overabundance of natural resources. One can attribute much of its economic growth to the mass export of mineral deposits, those that are particularly in the province of Katanga. Minerals in the region include copper, zinc, cobalt, coal, silver, uranium and platinum. The Congo’s forest is also rich in fish and lumber, but as a result of the abuse of these resources, the government is working to preserve and protect these areas from deforestation. As a result of exporting these vital resources worldwide, especially copper and cobalt, the Democratic Republic of the Congo was able to climb out of its economic recession in 2018. In 2018, the economy grew to 4.1 percent and has been on a steady incline ever since. Despite gaining wealth in exporting such resources, its account deficit widened from 2.9 percent of its GDP in 2017 to 3.9 percent of its GDP in 2018. This was due to the large increase in imports, but with sufficient government programs and community support, the Democratic Republic of the Congo will be able to stabilize its economy in the future to gain more economic advantages from exporting its natural resources.
- Botswana: Since its independence from Britain in 1966, there were doubts about whether Botswana would be able to sustain itself as an independent country. As a landlocked country with a small agricultural population, droughts that hit the country in the 1960s took a huge toll on beef exports, which at the time was the country’s only means of export. However, its luck began to turn around in 1966 when it discovered the first batch of diamonds in Orapa. The capital expenditure on mines aided the start-up of other sectors, such as construction, financial services and transport. This led to rapid economic growth, lifting wealth prospects to overwhelming heights. As documented, from 1966 to 2014, Botswana’s GDP per capita grew at an average of 5.9 percent a year. These numbers were one of the highest rates of GDP per capita growth that the world saw during that period. A large contributor to the rapid expansion of Botswana’s economy was the export of diamonds. Of course, as a developing country, Botswana still has challenges to overcome. Youth unemployment is as high as 35 percent and more than 13 percent of the population is living off of just $1.90 a day. There are also concerns that its economy has become too reliant on its diamond business. Botswana, as always, has been working to relieve these issues.
- Saudi Arabia: Saudi Arabia is home to about one-fifth of the world’s petroleum reserves. The petroleum industry takes up approximately 80 percent of its budget revenues, 90 percent of export earnings and 45 percent of the country’s GDP. In addition to the already existing oil fields, Saudi Arabia discovered the Arsan, the AsSayd, the Namlan and the Qamran oilfields along with the Jalamid gas fields in 2010, adding to its economic prosperity. Additionally, Saudia Arabia also has large reserves of a variety of metals including iron, lead, gold and copper. One company called Ma’aden, which has two subsidiaries called Ma’aden Gold and Base Metals Co., has operated five gold mines in Saudi Arabia since 1988 and has produced more than 4 million ounces of gold. To gain further investment from these profitable natural resources, Saudia Arabia joined the WTO in 2005, constructed six economically-driven cities in its country and developed social and infrastructural projects between 2010 and 2014 to promote economic prosperity. In terms of maintaining its position as perhaps the world’s leading petroleum producer and exporter, it will be able to do just that for many years to come. However, internal conflict and poverty are issues that Saudi Arabia still faces, so much work is still necessary to bring its country into an era of peace and stability.
Overall, developing countries do, to some degree, gain substantial benefits from exporting their natural resources for profit. However, circumstances must align in order for the export of natural resources to benefit them, because the same blessing can very well turn into a negative consequence and be more damaging to their economies.
– Lucia Elmi