Natural Resources and Problems of Development

Abstract

The author focuses on problems in the economy of the developing countries likely to arise as a consequence of mineral exploitation in the new territories. A general shortage of mineral resources, although predicted, should not uncritically be adopted as a sufficient explanation of the demonstrated interest of industrial enterprises in undertaking heavy investments in the new territories. The economic security claimed by institutions financing large-scale investments, may just as likely force the companies to seek options for long-term supplies from these areas, unhampered by the politically caused instabilities perceived in the Third World. This development may tend to push the developing countries into the role of subsidiary suppliers in the world market.

The committees preparing the UN Conference on the Law of the Sea have so far taken no realistic measures to counteract this possibility, which may prove detrimental to the economies of several developing countries. The Conference will, in the opinion of the author, provide little but a settlement of disputed interests among the coastal states.