Summary

This document discusses the economic benefits of natural resources, including their role in generating revenue, creating employment, and providing industrial raw materials. It also examines the changing consumption patterns of resources over time and the importance of resource conservation.

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**3.1.1.Resource utilization and economic benefits\ *****What are the economic benefits of natural resources?\ ***The World Bank defines natural resources as materials that occur in nature and\ are essential or useful to humans, such as water, air, land, forests, fish and\ wildlife, soil, and miner...

**3.1.1.Resource utilization and economic benefits\ *****What are the economic benefits of natural resources?\ ***The World Bank defines natural resources as materials that occur in nature and\ are essential or useful to humans, such as water, air, land, forests, fish and\ wildlife, soil, and minerals. Hence, natural resource is anything we get from the\ living and non-living environment to meet our needs and wants. Some resources\ are directly available for use, for example, air, water soil and plants. But\ resources, such as minerals and underground water are not directly available.\ they became useful only by employing human skill and knowledge. The degree\ of utilization of natural resources depends on the countries level of development.**\ **For instance, In developing countries, most resource extraction techniques are traditional in\ their nature. This in turn affects the level of productivity. Forest resource\ extraction, fishing, cultivation, and other sectors of the economy that are linked\ with natural resources are dominantly traditional in their nature.\ **The economic benefits of natural resources\ **Natural resources, both renewable and non-renewable are a part of the real\ wealth of nations. They are the natural capital out of which other forms of capital\ are made (see figure 3.1 and box 3.1). That is, natural resources play a central\ role in the well-being of the human being as they serve as:\ **1. Sources of revenue or income**: Natural resources, such as timber, minerals,\ and oil, are used to produce revenue. They are the primary source of income,\ and many individuals depend on these resources for their livelihoods. Natural\ resources, both renewable and nonrenewable are also used as exports by the\ government to attain revenue. The revenues from natural resources can\ contribute to:\ the development of industries or factories.\ the development of human capital through investments in education,\ health and job training etc.\ poverty reduction\ **2. Sources of employment and job creation potential**: Natural resources have\ the potential to provide a significant number of jobs. According to UNEP and\ ILO, for instance, the three alternative energy resources alone, created a job\ opportunity for 20 million people in the world: 2.1 million jobs in wind\ energy production, 6.3 million in solar photovoltaic and 12 million in bio\ fuels-related energy.**\ **  **Natural capital**: natural resources, like minerals, biological raw materials, renewable energy (solar and tidal) and fossil fuels etc.\  Natural capital provides the foundation\ for other forms of capital. The other forms of capital that are developed from natural capital are:\  **Built capital:** is composed of the processed raw materials, tools or machineries, factories and other\ technologies created by humans.\  **Human capital**: resides in people themselves and is comprised of the various competences and capacities that individual people have. Human capital is increased by investments in education, health, worker safety and so on.\  **Social capital:** In contrast to human capital, which is embodied by the individual, social capital is comprised of the various connections and bonds between people. It is social capital that allows people to work with each other towards common goals.\ **3. Sources of industrial raw materials**. Natural resources provides raw\ materials for Industries, Raw materials are substances we get directly from\ natural; resources. For instance minerals like iron and steel is extracted from\ rocks containing iron ore.\ Owing to this fundamental importance of natural resources, they must be\ managed sustainably. Government plays the essential role in putting into place\ policies that ensure that resources contribute to the long-term economic\ development of nations, and not only to short-term revenue generation. Highquality institutions in the present, and planning for the future, can turn the so\ called―resource curse into an opportunity. Hence, the wise and sustainable\ utilization of natural resources is essential in order to provide for future\ generations.\ **3.1.2. Factors of natural resource utilization\ **Some countries have tremendous potential of natural resources. However, the\ degree of exploitation of these resources appears being very low. Many factors\ influencing the utilization of natural resource;\  Availability of capital\  Advancement of technology\  Availability of transport and communication\  lack of good governance, corruption, maladministration\  Availability of resources-availability of raw materials versus reliance on\ imports\  Skill of human power\  Availability of water etc. has also contributed for the limited development\ of the resource exploitation.\ **3.1.3. The changing consumption patterns of resources over time\ *****How the consumption pattern of resources changed over time?\ ***The exploitation of natural resources for economic growth sometimes resulted in\ environmental degradation. As the world population rises and economic growth\ occurs, the depletion of natural resources influenced by the unsustainable\ extraction of raw materials becomes an increasing concern. Increase in the\ sophistication of technology enabling natural resources to be extracted quickly\ and efficiently. Example, in the past, it could take long hours just to cut down\ one tree only using an axe (see figure 3.2). But today, due to increased\ technology, rates of deforestation have greatly increased.\ The number of human population is also increasing. According to the UN there\ were 7.6 billion people in the world in 2017. This number is expected to rise to\ about 10 billion in 2050 and about 11 billion in 2100. This increase in population\ size, combined with continued economic growth, is likely to dramatically\ increase pressures on the environment and demand for resources. For example,\ annual global material extraction has been projected to reach 183 billion tones by\ 2050, more than double the amount in 2015. Demand for food and fiber could\ increase by 60 per cent and 80--95 per cent, respectively, by 2050. Demand for\ water could increase by 55 per cent over the same period. This was twice the\ rate of population growth.\ In the same way, human activity in our country is changing ecosystems rapidly\ and extensively, largely in response to increasing demands for food, fresh water,\ timber and others. These changes have depleted and degraded many ecosystem\ services, increased risks of sudden and disruptive environmental change, and\ exacerbated poverty For instance, as many sources indicated there were a\ number of rivers and streams around the city of Harar in the past. But, now\ because of overused and misused of these resources, rivers and streams dry up.\ *Figure 3.3.Hamaresa river: (A) in the past ; (B) today\ *More surprisingly, as a result of rapidly growing population, combined with\ technological and economic development, people in our locality exhaustively\ exploited the sub-surface water for irrigation purpose. Most of the people in our\ locality depend on production of cash crops (*Chat)* as a means of their\ livelihood. In order to support harvesting of *chat* more than twice per year, it is\ necessary to use irrigation system. Hence, the farmers will dig the water well\ deep in to the ground sometimes up to 50 meters in some area. Almost most of\ farmers have their own private well from where the water pumped using\ generator and long pipe to irrigate their farm. As studies indicated, water\ consumption for human use in our region grew rapidly from time to time. This\ high rate of growth in water consumption in our locality is resulted in depletion\ of water resources.\ **3.1.4 Resource conservation and sustainable utilization Meaning of conservation\ **Simply the term *conservation* means *the protection of resources from destructive\ influences*. It is also known as the wise use of resources.\ **Meaning of sustainable utilization\ **Sustainable use of resources is an activity which does not deplete or damage\ natural resources irreparably and which leaves the environment in good order for\ future. The most widely quoted definition of sustainability and sustainable\ development, that of the Brundtland Commission of the United Nations on\ March 20, 1987: ―sustainable development is development that meets the needs\ of the present without compromising the ability of future generations to meet\ their own needs.\ In other words, sustainability implies that future growth and overall quality of\ life are critically dependent on the quality of the environment. To destroy the\ environment in the pursuit of short-term economic goals jeopardizes present and\ especially future generations. That is why sustainability is a current paradigm for\ thinking about a future in which environmental, societal and economic\ considerations are balanced in the pursuit of development and improved quality\ of life.\ **1. Soil conservation and sustainable utilization\ **Soil is the loose material of the earth's surface in which terrestrial plants grow.\ Soil is a complex mixture of inorganic minerals, decaying organic matter, water,\ air and living organisms. Soil is vitally important part of the terrestrial ecosystems.\  It provides nutrients for plants.\  Indirectly soil also provides food for all animals and human beings.\  It is fundamental to continue human existence; without soil we cannot\ grow the food we need.\  A habitat for small animals\ However, the land can be overgrazed or the nutrients in the soil can be used up\ through improper farming practices. Natural vegetation can also be removed to\ get agricultural land, fire woods, construction purposes etc.\ People left the soil unprotected when they removed protective plant cover by\ farming, burning crop residues, overgrazing and cutting trees.\ This makes it easy for the rain to wash away the soil and for the wind to blow it\ away. We refer to this as soil erosion. In Ethiopia, soil loss occurs at a rate of\ between 1.5 billion and 2 billion cubic meters per year.\ **Factors affecting soil resources\ **Soil erosion is mainly caused by both natural and man made factors.\  Natural causes; includes heavy rainfall, vegetation cover, topography\  Human causes: deforestation, overgrazing and bad agricultural practices\ **Soil Conservation Measures in Ethiopia\ **There are several measures we can institute to reduce, minimize or eliminate soil\ erosion by wind and running water. They include:\ ***Contour ploughing** -- ploughing across slopes, rather than up and down.* \ ***Terracing** -- installing ledges for cultivation at right angles to slopes to\ reduce runoff. The Konso people is well known for terracing in Ethiopia* \ ***Strip cultivation** -- planting different crops in alternating strips to retain water and soil.* ***\ ******Shelter belts and windbreaks** -- planting trees around the edge of the\ farm lands to protect the soil from winds erosion, predation by animals.* \ ***Afforestation** -- planting trees on bare and unproductive lands* \ ***Reforestatio**n -- planting trees after every tree harvest* \ ***Limiting grazing** -- keep livestock according to the carrying capacity of the land.* \ ***Fallowin**g -- initiating multi-year periods of non-cultivation for the land,\ allowing it to regenerate its fertility.* \ **2. Water conservation and sustainable utilization*\ ***Without water no life is possible. People can use water for different purposes\ such as for irrigation, for drinking, for industries, navigation, energy source,\ fishing etc.\ However, today the earth's water resources are being over used and sometimes\ misused. It is projected that, by 2030 annual global water demand will rise from\ 4,500 billion cubic meters in 2010 to 6,900 billion cubic meters (UNEP, 2012b).\ As indicated above, according to recent study by 2040 there will not be enough\ water available to meet global demand for both dirking and energy production.\ This rate of growth in water consumption was twice the rate of population\ growth reflecting increasingly water intensive lifestyles, as well as industrial and\ agricultural intensification. As a result, water resource is not only overused but\ also polluted due to industrial, agricultural and sewage waster.\ **Causes of water resource depletion\ **  Over-consumption or excessive use of water resources\  Unnecessary or miss use of water resources\  Waste disposal on water bodies\ **Conservation of water\ **  Sustainable use of water\  recycling, reuse and reproduce water\  removal off pollutants by purification\  effective treatment of municipal and industrial wastes\  use of chemicals like chlorine\ **3. Forest conservation and sustainable utilization*\ ***People have depended on the Earth's biodiversity as a natural resource since the\ very beginning. They have used plants for sources of food, medicine, industrial\ raw materials, energy and building materials.\ In addition to the above direct uses, forests and other plants play a vital role in\ maintaining the balance of global climate, protecting soil erosion and serving as a\ habitat for wild animals.\ **Major causes of forest resource depletion\ **The major causes for forest resource depletion includes\ Unnecessary or miss use of forest resources like deforestation and burning \ Over-consumption for sawmill factories, fire woods, overgrazing \ expansion of agricultural and settlements \ *At the beginning of the 20thC, the forest cover of Ethiopia was\ estimated at 40 percent of the entire country. Now it is less than 17\ percent. This deforestation rate is alarming. We estimate that\ Ethiopia loses 100,000 -- 200,000 hectares of forestland every year*.**\ Conservation of Natural Vegetation\ **These conservation measures have been suggested for preserving Ethiopia's\ forests:\ ***Reforestation** -- planting trees after every tree harvest.* \ ***Afforestation** -- planting trees on bare and unproductive lands.* \ ***Controlling burning practices** (i.e., the slash-and-burn activities).* \ ***Agro-forestry**. Trees, crops and livestock raising is integrated in adjacent location.* \ *Using alternative sources of energy for household consumption.* \ *Controlling overgrazing.* \ *Raising public awareness.* \ **4. Wild animals conservation and sustainable utilization*\ ***All wild living creatures, large or small. Mammals, birds, fish, reptiles,\ amphibians and insects are regarded as wild animals. These animals are\ important for many reasons. Among the most common important functions of\ wild animals for human beings are the following.\ *Source of food*\ *Source of industrial raw materials* \ *Scientific and educational purpose* \ *Maintaining the balance of nature* \ *Recreational purpose* \ *Source of individual and national income* ***\ *Major factors that affect wild animals\ **Habitat destruction\ such as deforestation,\ burning etc. \ Illegal hunting \ drought *\ ***Conservation Measures\ *****What can we do to save, sustain and protect wildlife resources?\ ***Here are some conservation measures that have been recommended:\ *Protect habitats.* \ *Establish national parks, game reserves and sanctuaries.* \ *Monitor and administer existing conservation areas properly.* \ *Establish and implement strong laws that effectively prohibit illegal\ hunting.* \ *Educate and encourage local communities to protect their animals'\ habitats and resources.* \ **Indigenous knowledge's related to resource conservation\ **Indigenous knowledge is a body of knowledge built through generations living in\ close contact with nature; it includes a system of classification, a set of empirical\ observations about the local environment, and a system of self-management that\ governs resource use.\ Indigenous knowledges are important to environmental managers and\ conservationists in providing additional dimensions to scientific modes of\ human-environment interactions.**\ **Ethiopia is very rich in different indigenous knowledge systems in such areas as\ architecture, medicine, agriculture, cottage industry and natural resources\ conservation. But here, you are going to learn about indigenous knowledge\ related to natural resources conservation in detail. Conditions for adoption or\ development of Indigenous knowledge's are the production-associated problems\ such as land degradation, erosion, and climate or weather change, small size of\ the farm , topography or landscape feature, and change in the economic, social\ and cultural settings of the community.. Some of the most commonly practiced\ indigenous knowledge in Ethiopia for the soil and water conservation are\ mentioned here.\ 1. **Terracing**: cutting the land in to a serious of steps used to retain both runoff\ and soil deposits. Terracing can be made with soil, or stone and other*\ ***The Konso people** are famous for their traditional skills in hillside terracing\ and banding.\ 2. **Constructing Ditches**: A wide waterway which controls the runoff that comes\ from the top land and which is usually constructed at the top edge or between the\ adjacent farmlands.***\ ***3. ***Planting trees**: shelter belts* - Some tree species planted at the edge of the field\ to protect the washable soil deposits. Patches of elephant grasses also planted\ between and at the edge of the farms not only to protect soil erosion but also\ provide food for their livestocks.\ 4. **Traditional forest reserves** (TFRs), in some African countries, there are\ many reserved areas for forests, not less than 0.04 hectares, which are\ protected by residents of the adjacent area in accordance with customary laws.\ 5. Other Indigenous Knowledge's related to farming system includes:\  **Agro forestry**: This farming system is devoted to the production of\ perennial crops, animals and crops in mixtures. This system maintains soil\ fertility, reduces erosion, and provides food, fuel and income for the\ farmers. For instance, in Somalia agro forestry is found near the two main\ rivers, the Jubba and the Shabeelle where farmers cultivate food crops with\ scattered trees that provide limited dry season browse, fruits and poles.\ Growing food crops with coconut plantations and with date palms is also a\ common form of agro forestry in West African countries.**\ **  **Inter-cropping** is a multiple cropping practice involving growing two or\ more crops at the same time. It is an indigenous technique practiced in small\ scale farming systems in the tropical areas. Possible advantages of such\ systems include raising farm outputs, reducing labor inputs per unit of\ product, ensuring a timely supply of a varied range of fresh foods and\ avoiding cash outlays on inputs such as fertilizer.\  **Land and crop rotation, mulching, contour ploughing** etc are also\ indigenous knowledge used to conserve soils\ **3.2. Consequences of unwise utilization of natural resources\ **Now a days a number of people believe that resources are consumed at a faster\ rate than that of replacement, as a result their quantities become smaller and\ smaller. This process is called environmental degradation.\ Environmental degradation refers to unwise utilization of resources. If this\ situation continues uncontrolled, many of the resources will be lost or will\ deteriorate. Unless something is done quickly, we will face disasters. The current\ unwise use of natural resources has caused different environmental damages,\ economical and socio-cultural effects.\ **Environmentally:** unwise use of resources has caused different types of\ environmental damages which include extinction of flora and fauna,\ desertification, water depletion, air pollution, soil degradation, migration, deaths\ etc.**\ Loss of biodiversity:** unwise use of resources resulted in disappearance of flora\ and fauna and therefore extinction of species. There are some 30 million\ different animals and plants species in the word, of these the international union\ for conservation of nature says that, currently, more than 31,000 species are\ threatened with extinction.\ As indicated by many sources between 15 to 18 million hectares of forest are\ destroyed every year, on average 2400 trees are cut down each minute. The\ removal of forests without sufficient restoration has resulted in habitat damage,\ loss of biodiversity, changes to climate condition, desertification etc.\ Furthermore, studies indicate an increase in deforestation in the past three\ decades has resulted in 17 to 25% rise in green house gases globally. Increase in\ green house gases leading to global warming, loss of biodiversity, increase\ flooding and drought.\ If we don't take care of the forests there will be fewer CO2 sinks and therefore\ more air pollution. According to the world health organization, nine out of ten\ people worldwide breathe air with high levels of pollutants and seven million\ people die with air pollution.\ **Scarcity of Water:** poor farming practice, deforestation and pollution are major\ cause of water resource depletion. As of today, approximately one billion people\ lack access to clean water because of the effect of deforestation and\ contamination of water resources. Water shortage further contributes to famine\ and food insecurity. According to the United Nations, more than two million\ people, most of them children, die from diseases associated with water stresses\ each year.\ **Economically:** According to the United Nations Food and Agriculture\ Organization 33% of the world's soils are moderately to highly degraded. If the***\ ***erosion of fertile soil continues at the same rate, agricultural commodity prices\ will inevitably soar.\ **Depletion of minerals:\ Oil depletion:** oil is a non-renewable resource that account for approximately\ 40% of the total energy used globally. Since, oil is an essential commodity in\ manufacturing, mining, and transportation among many activities, its depletion\ would led to the fall of many business, uncertainty in transport sectors, high cost\ of living, particularly in developing countries.\ **Depletion of other minerals:** there has been an increase in the exploitation of\ minerals such as phosphorus, copper, zinc among others to sustain the eight\ billion people on earth. According to the Global phosphorus research institute,\ the earth could run out of phosphorus-an essential elements for plant growth, in\ the next 50 to 80 years.\ \ **3.3. Resource accessibility and resource based conflicts: (example\ the hydro politics of Abay River.)**\ Many women walk several hours a day just to find water; and more than\ two million people, most of them children, die from diseases associated\ with water stresses each year. \ Some experts are predicting that the world's supply of oil will run out\ in the not too distant future. \ The picture gets much more complicated when access to these natural resources\ become the reason for a conflict or, much more frequently, are used to fuel a***\ ***conflict. The role of natural resources as a source of conflict can be seen both\ internal and international levels.\ Paul Collier, an expert on the economics of civil war, estimates that close to fifty\ armed conflicts active in 2011 had a strong link to natural resource exploitation,\ in which either licit or illicit exploitation helped to trigger, intensify, or sustain\ violence.\  In Pakistan and Bolivia, for example, violent protests have broken out over\ the distribution of water. \  In the Middle East, disputes over oil fields in Kuwait, among other issues, led\ to the first Gulf War. \  The rebel groups Revolutionary United Front in Sierra Leone and National\ Union for the Total Independence of Angola used revenues derived from\ diamond mining to fund their rebellions against their respective governments. \ It may be helpful to think of natural resources in terms of how they are used.\ Some resources, such as streams and land, are used locally and may not have\ much impact beyond the local area. Other resources, such as timber, minerals,\ and oil, are used to produce revenue. It is these revenue-producing resources that\ cause the most problems, sometimes called the resource curse---the paradox that\ countries with abundant natural resources often have less economic growth than\ those without natural resources.\ Scholars have proposed that both scarcity and abundance can create\ environments that are ripe for violent conflict. The dependence on a few sources\ of revenue typically discourages diversification, leads to overheating of the\ economy, and increases volatility of prices and revenue. The abundance also\ often leads to government mis-management and corruption. In these and other\ ways, competition over natural resources can lead to, intensify, or sustain\ violence. Besides, those bodies of water such as oceans, seas, lakes, and rivers**\ **which shared by two or more countries mostly without adequate legal\ arrangements, can also be a source of conflict. (Example the hydro politics of\ Abay River)\ **The hydro politics of Nile River\ **The Nile River is one of the most politically significant rivers in Africa. The Nile\ River basin is an international watercourse that covers eleven states: Ethiopia,\ Egypt, Kenya, Sudan, Uganda, Rwanda, Burundi, Democratic Republic of\ Congo, Eritrea, Tanzania and Southern Sudan. Based on the general alignment of\ the river these countries are categorized into two as upper course and lower\ course countries.\  **The upper course countries**: are those that contribute the water for\ the river and are generally found at higher altitude where the major\ tributaries of the Nile originate. This includes Ethiopia, Kenya,\ Uganda, Rwanda, Burundi, Democratic Republic of Congo, Eritrea,\ and Tanzania. Of these, Ethiopia (Blue Nile) contributes about 85% of\ the water of the Nile, while the remaining 15% of the water of the Nile\ comes from the rest of the countries (white Nile).On the other hand\  **The lower course countries**: namely Sudan (both the Northern and\ Southern Sudan) and Egypt, are those that are found at lower elevation\ where the water of the river flows gently over vast plain.*\ *The Hydro-politics of the Nile is, therefore, related with the degree to which the\ Nile River is utilized in its upper and lower courses. Historically, the two\ countries, Egypt and Sudan have been the most benefited of all the countries in**\ **the Nile basin. This is especially true for Egypt where the Nile River's water and\ alluvial soil along its flood plain have become the source of life in the desert\ affected Egypt. The Aswan high dam that is constructed along the Nile River in\ Egypt has been the most important source of water, energy, fish and recreation\ for the Egyptians. In Sudan, too, the river has been developed to a greater extent.\ Contrary to this, the upper course countries have been the least benefited. For\ centuries, the lower riparian's have exploited the Nile River to the detriment of\ others. If this continues unabated, the hand-to-mouth existence of millions of\ people would further deteriorate; and this in turn heightens the tension between\ the riparian states. This unbalanced and unfair utilization of the river between the\ upper and lower course countries has been a great area of interest.\ **Managing or Resolving Conflicts\ **Countries in the basin seem to be realized that equitable utilization of the Nile\ waters would lead to the creation of long lasting peace, security and cooperation\ in the region. It would also ensure sustainable development as well as safeguard\ and promote the interests and economic rights of the peoples of the Basin. All\ the riparian states can only win the future challenges and improve the standard of\ living of their peoples through cooperation rather than confrontation. The Nile\ riparian countries are expected to moving in the right direction by setting aside\ their differences and share the water resources to make social and economic\ progress.\ ***\ ***Access to water and land resources is the major source of conflicts between clans\ and ethnic groups in the pastoral areas of Ethiopia. For example, the most\ common inter clan and inter-ethnic conflicts are between the *Karrayu* and *Ittu\ *Oromo communities and the Afar and Isa communities, Oromo and Somalia\ communities etc.\ Peasant associations (*kebeles*) were the powerful instrument of formal conflict\ resolution at local level. They had their own judicial committee to oversee\ conflicts and had the power to impose decisions through fines and imprisonment.\ However, Ethiopia has also been practicing various indigenous or traditional\ conflict resolution mechanisms for many centuries. Indigenous conflict\ resolution typically involves consensus building based on open discussions to\ exchange information and clarify issues about the conflict. The desired end result\ of indigenous conflict resolution mechanisms is a sense of harmony, solidarity\ and shared dialogue among conflicting parties not punishment.\ In the ancient days and most especially under the *Fetha Negast* \[law of the\ kings\], conflicts between individuals or communities were encouraged to be\ settled amicably at local level. Elders- *Shimagelle*- or people appointed on ad-hoc\ basis to settle disputes played an important role in resolving conflicts. Even\ today, these mechanisms are widely practiced among the various ethnic groups\ to settle various conflicts and many other problems. For instance, the *Gadaa\ *institutions of among the Oromo, *Ugaz* among Somalia, *Afosha* among the Harari\ (informant), the *Shimagelle* by the Amhara and other ethnic groups are practiced\ (Gowok, 2008)

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