e 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 developing country's ability to withstand either the depletion of a physical resource or a slackening of demand for the resource, is improved to a significant degree.
STRATEGY ALTERNATIVES
The combined effects of a lack of development capital and of pressing needs for income place developing countries at a serious disadvantage in the marketing of their physical resources. The developing countries often feel compelled to accept the role of raw material providers to the developed countries and to the multinational corporations based in those countries.
Cartelization is one strategy employed by physical resource rich developing countries to improve their capacity to deal with developed countries and multinational corporations in the marketing of their physical resources. The Organization of Petroleum Exporting Countries (OPEC) is probably the most well-known example of a developing countries physical resource cartel. ...