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Raw Materials Exports

In such a scenario, the primary economic benefits accruing to the developing country derive from low level labor wages paid to its citizens during extractive or harvesting operations. While it is true that an extractive or harvesting industrial capacity has been developed within a developing country, this capacity becomes largely worthless when the physical resource is depleted, or when demand for the resource slackens.

The low level labor wages typically paid to extractive and harvesting workers in developing countries provide only minimal benefits for the greater proportion of the population of the country. The wages are not high enough to generate consumer demand sufficient to justify the creating of domestic manufacturing capacity to support it. Thus, this demand tends to be satisfied by the importation of manufactured products from developed countries.

When human resource development accompanies the development of a physical resource, the skills and the incomes of a significantly greater proportion of the population of the developing country concerned also are improved. When domestic processing and manufacturing capacities are developed concurrently with physical resource development, the developing country is provided with (1) additional sources of income, and (2) a means of decreasing its dependency on imported products. In each instance, the development of human resources and domestic processing and manufacturing development, a develo


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Raw Materials Exports. (2000, January 01). In Retrieved 04:43, October 25, 2014, from
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