Investment in oil and gas,
and minerals will need to increase significantly by 2030 to meet strong demand (particularly
in emerging markets) and replace existing sources of supply coming to the end
of their useful lives. This investment should promise huge benefits to
countries with major reserves of natural resources. However, all too often,
governments in these countries have failed to make the most of their potential
resource wealth
81 countries are driven by resources in 2011 accounting
for 26 percent of global GDP, up from 58 generating only 18 percent of world
GDP in 1995
69% of people in extreme poverty are in
resource-driven countries
Almost 80% of countries whose economies have
historically been driven by resources have
per capita income levels below the global average, and more than of these are
not catching up
Almost 90% of resources investment has historically
been in upper-middle-income and high-income countries
~½ of the world’s known mineral and oil and gas
reserves are in non‑OECD,
non‑OPEC countries
Up to $17 trillion of cumulative investment in oil
and gas, and mineral resources could be needed by 2030—more than double the
historical rate of investment
540 million people in resource-driven countries could
be lifted out of poverty by effective development and use of reserves
Opportunities to share much of the $2 trillion of
cumulative investment in resource infrastructure in resource-driven countries
to 2030
50%+ improvement in resource‑sector competitiveness possible through joint government
and industry action
- Mckinsey Report on Natrual Rources
The moral of the story is that the natural resources assets
are depleting in developed countries but there are abundant resources available
with third world economies which are yet to be discovered or the rate of efficiency
in mining those resources are extremely low.
The composition is interesting. The demographic profile,
abundant availability of natural assets and consumption demand all are dominant
with developing economies but the technological capabilities and the financial
resources rests with the developed world. The global melt down and the
subsequent capital creation across the world has not helped the cause to tide
over the crisis since the easy money has been deliberately converted into
speculative asset fueling inflation rather growth.
Channelizing the financial resources effectively towards
mining and utilization of natural resources would have pulled out majority of
the people from poverty enabling more economies getting into prosperity zone. We
could have averted a global crisis had we been more prudent in investing the
global capital into natural assets
At least now we need to wake up and focus towards making
collaborative efforts to optimize the availability of natural resources to tide
over the crisis which looks eminent with alarming increase in demand for oil
and minerals.
The curse is for the resource driven economies, since they
have not been able to optimize their wealth creation though they are rich in natural
resources.
The time has come for the world to come to common ground on
optimizing the usage of natural assets thereby enabling equitable distribution
of wealth across population thereby eradicating poverty from the human system.
Economic Prosperity, Equitable distribution of Wealth and Eradication of Poverty will all be only wishful thinking unless Nations cut cross their individual aspirations and collaborate
towards the common cause of Mankind through integration of respective resources like Financial asset, Intellectual asset and Natural assets.
Marggo India
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