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Current Category » Economics of Natural Resources & Farm Management

Guiding Principles of Resource Development

The main objective of resource development is to maximize national output and for this purpose there should be optimum utilization of resources in short run as well as in long run period. In view of this various guiding principles have been evolved for resource development and they are as follow.

1. Economic use of resources to achieve minimum was to:
Due to lack of techniques, inabilities to make use of bye product, backwardness of techniques are the important reasons for waste of resources. Therefore, minimum wastage of resources is very important.

2. Sustained use of economic resources:
It is possible through conservation renewable resources and economic use of exhaustible resources. Here foresight is required how the best use of resources can be done not keeping in view the short run but long run period.

3. Multi-purpose use of resources:
Many resources have number of uses. For example river water can be used for irrigation, power supply, navigation etc. Hence use of resource needs to be done for different purposes.  

4. Integrated Planning in the use of natural resources:
If the natural resource has numerous uses and decided to exploit those integrated planning is required. E.g. use of water for irrigation, water fisheries, and industry can be done simultaneously. This requires proper planning and execution.

5. Location of Industries:
Industry required a huge amount of raw material. Mane raw materials are bulky which requires more transport costs. Therefore the installation of industry should be nearby the ar6ea from where the supply of raw material is made e.g. the electricity production unit must he install nearby the coal mines which reduces the transport cost.

6. Ecological balance:
Many times for rapid development we exploit many natural resources without taking the care of ecology. Ecological balance needs to be maintained as it is very important people’s health point of view. Therefore mismanagement of resources, large scale deforestation, unplanned discharge of residuals and waste, toxic chemicals etc. are needed to be avoided.

In short, the guiding principles of resource developments emphasis the “Least Cost Principle” so as to achieve sustained economic growth

Current Category » Economics of Natural Resources & Farm Management