Posted by / Monday 22 August 2016 / No comments

The importance of Natural Resources to National Development

It generates employment
One of the contributions of natural resources is that it generates employment. The natural resources of Ghana, such as gold, manganese, timber, hydrocarbon, etc, needs to be harnessed for exports or use at home. In the process of doing so, a lot of employment is generated.

Generates foreign exchange
Another contribution is that natural resources earn Ghana a lot of foreign exchange. When, for example, the natural resources are mines or produced, a lot of it is exported in its raw form to other countries of the world. Such countries pay hard cash for the product or take it in lieu of a service or goods imported or a loan that is granted to Ghana. 

Source of raw material
Another contribution of Ghana's raw material is that it provides the industries their needed raw material for the production of other finished goods. For example, cocoa is used as a raw material in the production of chocolates and other beverages. The timber is used in the production of furniture.

Provides infrastructure
Another importance of natural resources are that the proceeds from the sale thereof are used to provide schools colleges and other tertiary institutions like universities. It is also used to provide markets, roads, hospitals,  water and electricity. For example, Ghana as of 2016 has been able to provide electricity coverage for up to 80% of her population.

Source of food
The natural resources of a state are major sources of foodstuff for the population. These foodstuffs come from farming activities where different kinds of foodstuffs are obtained. Some of these diverse foodstuffs include yam, plantain, cassava, okra, onions, etc.

Provision of government revenue
In order for a government of the day to provide the needs of the people, it must have the wherewithal to do so. The wherewithal constitutes the revenue that is generated through the sales of the natural resources and the taxes that are paid by companies that turn the resources into goods.
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