THE ECONOMICS OF NATURAL-RESOURCE EXTRACTION - A PRIMER FOR DEVELOPMENT ECONOMISTS

As developing countries become major consumers of the global supply of commercial energy, it is essential to understand the determinants of future energy prices. At the same time, many developing countries are relying on exports of their own natural resources-tropical hardwoods, oil, tin, gold, and other minerals-to generate badly needed foreign ex change. Government policies influence how much of a resource is extrac ted today and how much is saved for the future. Flawed policies needle ssly waste precious national wealth.