Natural Capital and Economics – The Relationship Between Natural Resources and Economic Development

The Growing Popularity of Scented Candles

“Sustainable development” is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Whereas, Natural resource management refers to the management of natural resources such as land, water, soil, plants and animals, with a particular focus on how management affects the quality of life for both present and future generations. But in today’s world linkages between resource use and ecosystem services are not being developed and restoration factors have totally being ignored. Increasing Natural resource degradation is costly and needs to be managed in order to preserve the future generations.

The country’s rapid economic development had come at a huge price – fast-depleting resources and a massive degradation of the environment.

Various studies on the subject of “Economic Development” have been presented. And there are several examples in the literature that show the actual benefits derived from using the natural capital. Indeed getting benefits from the sources is appreciable but my question arises as we know that current economic development is essentially unsustainable.

So is it a rational decision to deplete the Natural Wealth today for the sake of development? And leaving the future generation in deprivation of the resources?

To answer this research question the following sub questions are formulated.

What policies or strategies are necessary to improve the Economic development without depleting the natural Resources?

What are the basic Compensation rules for Natural Wealth?

What are the different ground realities important to be considered in finding of the most feasible alternate options?

If we use up more natural capital to produce economic output today and increases the economic efficiency. Although economic growth rises, but then after this we have less resources available for tomorrow’s production.

Why it is Important?

According to my point of view, depletion of natural wealth is not a rational decision in case we have no alternate options available. If our expansion over the successive years exploits and erodes our natural capital without any regard to its ability to recover, we run the risk of degradation of local, regional or even global ecosystems and potential economic collapse.

This is a critical time to act. Thus the need of the time is to conserve the Natural capital and make the compensation rules in order to conserve it for future use. And then implement these rules for the smooth economic development. Thus, the daunting challenge of poor management of natural resources needs to be addressed not only to overcome the damages caused due to it, but also to achieve economic self-sufficiency and prosperity of the nation.




Please enter your comment!
Please enter your name here