For the nations which are plenty of oil mines are the rich countries based in the Middle East bloc. However, oil resources can be gone someday like Cambodia used to be plenty of forest, ores, precious stones and gold but they were devastated by the civil war in the past decades and suffered by unfair-sharing of exploitation. The legacy resources of Cambodian include Angkor temple and other cultural areas which generate income around nearly 50 million dollar annually. Furthermore, Cambodia has oil resources for exploitation and extraction industries too.
Extraction industry is a way to extract the non-recycled natural resources, for example natural ores and kerosene. The economic analysis indicated that Cambodia may receive benefits from maximum extraction industry so that the government must establish the law for management and control first. Income from such industry also may help Cambodia which is lacking of finance and fund for development of infrastructure, health care, education and institutionalized capacity building so that to help the national economic growth and reduction of poverty of local people.
Many countries who make income from the natural inventory and always encounter main two issues including the obstacles for expense for younger generation and current time and second obstacle is allocation of the government’s expense for each nations in line with economics and development from these natural resources promotion.
Natural resources management can be useful for standing benefits of the national economy. From experiences in countries that possess the revenue of the resources. They used the amount of income for enabling of improvement of macro-economics.
Strategy for development consists of three critical components: public investment gathering which is suitable for local condition, economic policy framework to promote private sector and guideline framework to ensure rule of law and macro-economic sustainability.
In this context, the natural returns should be used for public investment. For low income-nations the goal is to absorb benefits from resources income to fill the basic demand include infrastructure, education and healthcare. For medium income-nations, they mobilize such income to develop at the rural economics which based on resources so that to become urban economics which based on human resource and knowledge.
The successful experiences demonstrate that resource income management must be linked with development process and securing of balance between expenses and saving. However, there has been both advantages and disadvantage for consuming of resources according to level of economic development and quality of institutions for the poor country and its management. Therefore, the resource income management for each nation has to align with development process. In the developed countries within existing human resources and infrastructure, the best choice is to save financial property for ensuring salary expense in long terms.
The income management for the poor country is relevant to two types of concepts, transparency and accountability of control and expenditure in its management. In other countries show that stability of economic growth and natural proceedings rely on speed of structure reforms and institutional capacity development to achieve these concepts.
Read more about Chinese Companies Are Devastating Cambodian Natural Resources
