Impact of Natural Resources - AP Comparative Government and Politics
- Identify one negative impact of natural resource abundance on governance.
- Corruption. Resource wealth often leads to rent-seeking and poor governance practices.
- What is a fiscal tool used by governments to stabilize resource revenue?
- Sovereign wealth fund. Investment vehicle that saves resource revenues for future generations.
- Identify a key challenge in managing natural resource wealth.
- Volatility of commodity prices. Fluctuating prices make budget planning and economic stability difficult.
- What can excessive reliance on natural resources lead to in terms of economic diversification?
- Lack of diversification. Over-dependence on resources prevents development of other economic sectors.
- Identify a common political risk in countries with abundant natural resources.
- Political instability. Resource competition and wealth concentration often fuel political unrest.
- Which policy can help mitigate the negative effects of resource wealth?
- Resource management policies. Strategic policies help distribute resource wealth and promote diversification.
- What is a potential benefit of natural resource wealth for education?
- Investment in educational infrastructure. Resource revenues can fund schools, universities, and training programs.
- What is a potential political impact of natural resource wealth?
- Weakened democratic institutions. Resource wealth reduces government dependence on citizen taxation and oversight.
- Identify one way resource wealth can influence national security.
- Increased military spending. Resource revenues fund defense capabilities to protect valuable assets.
- Identify one method to reduce environmental impacts of resource extraction.
- Sustainable extraction practices. Environmental protection methods that minimize ecological damage during extraction.
- Identify one factor that can exacerbate the resource curse.
- Weak institutions. Poor governance structures amplify negative effects of resource dependence.
- What is the term for the concentration of wealth in a small sector of the economy?
- Economic concentration. Economy dominated by single sector rather than diverse industries.
- What is the economic impact of resource extraction on local communities?
- Economic disparity. Resource extraction benefits may not reach affected local populations.
- What term describes the economic phenomenon where other sectors decline due to resource focus?
- Dutch disease. Resource boom causes currency appreciation, making other sectors uncompetitive.
- Which political system is more likely to emerge in resource-rich countries?
- Authoritarian regime. Resource wealth reduces need for taxation, weakening democratic accountability.
- What is one way to promote sustainable development in resource-rich countries?
- Diversification strategies. Developing multiple economic sectors reduces dependence on single resources.
- Identify a common environmental impact of natural resource exploitation.
- Deforestation. Logging and mining activities destroy forest ecosystems and biodiversity.
- What is the term for a country's reliance on a single natural resource for economic stability?
- Resource curse. Occurs when resource dependence hinders economic development and governance.
- What role does governance play in the management of natural resources?
- Crucial for effective management. Strong institutions essential for transparent and sustainable resource governance.
- Identify one way natural resources can affect international relations.
- Resource-based conflicts. Competition for resources can trigger disputes and geopolitical tensions.
- Which term describes the economic impact of sudden resource revenue influx?
- Boom and bust cycles. Economic pattern of rapid growth followed by sharp decline.
- Identify one challenge in ensuring transparency in resource management.
- Lack of accountability. Limited oversight and reporting mechanisms for resource revenue management.
- What is the impact of natural resources on a country's foreign policy?
- Resource diplomacy. Using resource wealth as leverage in international negotiations and partnerships.
- Which international body often assists countries with natural resource management?
- International Monetary Fund (IMF). Provides technical assistance and policy advice for resource governance.
- Which type of economy is heavily influenced by the extraction of natural resources?
- Rentier state. States that derive significant revenue from natural resource extraction.
- What is the term for the financial phenomenon caused by fluctuating resource prices?
- Price volatility. Unpredictable resource price swings create economic uncertainty and instability.
- What is a major environmental challenge associated with oil extraction?
- Oil spills. Accidents during extraction cause severe marine and coastal ecosystem damage.
- Which sector often experiences neglect in resource-rich countries?
- Agricultural sector. Focus on resource extraction often leads to agricultural sector decline.
- Which international agreement addresses the environmental impact of resource extraction?
- Paris Agreement. Global treaty addressing climate change and environmental protection goals.
- What is the impact of natural resources on public sector employment?
- Increased public sector employment. Governments use resource revenues to expand public sector jobs.
- What is the potential impact of climate change on natural resource availability?
- Resource depletion. Climate change threatens to reduce availability of water and other resources.
- What term describes the income derived from the sale of natural resources?
- Resource rents. Economic profits generated from extracting and selling natural resources.
- What is a potential benefit of natural resources for a country's infrastructure?
- Increased investment in infrastructure. Resource revenues can fund roads, utilities, and public facilities.
- What is a common social impact of natural resource wealth?
- Income inequality. Resource benefits often concentrate among elites rather than general population.
- What is a common social issue linked to natural resource exploitation?
- Displacement of communities. Mining and drilling operations often force local populations to relocate.
- Identify one environmental consequence of mining activities.
- Soil contamination. Mining operations release toxic chemicals that pollute agricultural land.
- Which global initiative promotes transparency in resource-rich countries?
- Extractive Industries Transparency Initiative (EITI). International standard promoting disclosure of payments in extractive industries.