Countries and regions with an abundance of natural resources tend to have less economic growth and worse development outcomes than countries with fewer natural resources. This is hypothesized to happen for many different reasons, including a decline in the competitiveness of other economic sectors. Impact of Imperialism Imperialism had a big impact on both the Western and Non-western countries. During the age of Imperialism a truly global economy emerged. The western industrialized nations dominated, especially the United States, Britain, France and Germany. These nations manufactured raw goods from the nonwestern continents such as: Africa, Asia, and Latin America.
Since claim to resources lies in geography, then those countries that have lots of valuable resources will be able to sell them to others for quite a lot. Those with high levels of education will also be able to sell that for a lot. History would suggest that countries with huge levels of "found" money from natural resources tend to squander it in unsustainable ways rather than reinvesting in an economic base that can survive on its own. This is a parallel to the difference between individuals who created their own wealth and those who inherited it.
May 26th, 2015
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