national resources and development

Resources is overall ofcountry’s position, natural resources, country asset system, labor resources, government policies,capital and market and so on from inside and outside the country

HANOI UNIVERSITY OF AGRICULTURE FACULTY OF ACCOUNTING AND BUSINESS MANAGEMENT

Hanoi-2014

Every country in the world takes full advantage of “resources” Resources is overall ofcountry’s position, natural resources, country asset system, labor resources, government policies,capital and market and so on from inside and outside the country that can be exploited to get economicdevelopment or economic growth of certain country Resources are not invariable It changes in timeand place and people can change them to get benefit for themselves Resources can be divided into two

kinds: National resources and foreign resources National Resources (or domestic resources or internal

forces) include natural resources, human resources, country asset system and policies National

resources play a decided role in each country Foreign Resources (or external forces) include science

and technology, capital, experience about organizing and managing business and so on that come fromoutside (foreign countries) Foreign Resources also play an important role in each country, especiallydeveloping country National and foreign resources, in fact, have close relationship It’s assist,cooperative and complement relationship based on equalitarian and respecting exclusive rights eachothers The common trend of a lot of countries nowadays is trying to combine national resources andforeign resources into general power for sustainable development

But, in our presentation today, we are very happy to tell you about national resources anddevelopment For detail, we will talk about 4 factors belonging national resources: natural resources,labor resources, financial resources, and science and technology resources

Introduction

Southeast Asia is a region of Asia, including the countries located south of China, east of Indiaand north of Australia, 4,494,047 km² wide and includes 11 countries: Brunei, Cambodia, East Timor,Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, also a place inPapua New Guinea.In 2009, the population of the area up to 578.6 million people, in which Indonesiahas the largest population (more than 231 million people), Singapore has the smallest population (morethan 7 million people) and Vietnam is the fourth country about population with more than 87 millionpeople, density of 263 people per square

Economic activity in this region stretches from the Stone Age with hunting and gathering toslash and burn, from commercial agriculture of the colonial period to the current export of labor, rawmaterials, textiles, and computer components Throughout history Southeast Asia has been one of theworld’s poorest regions But nowadays, despite the persistent global economic weakness, South-EastAsia continues to show signs of strong growth rates, sign of development on domestic demand

Development may refer to

1 The systematic use of scientific and technical knowledge to meet specific objectives or requirements

2 An extension of the theoretical or practical aspects of a concept, design, discovery, or invention.

3 The process of economic and social transformation that is based on complex cultural andenvironmental factors and their interactions

4.The process of adding improvements to a parcel of land, such as grading, subdivisions, drainage,access, roads, utilities

Development economics is that a branch of economics that focuses on improving the economies

of developing countries and development economics considers how to promote economic growth insuch countries by improving factors like health, education, working conditions, domestic andinternational policies and market conditions It examines both macroeconomic and microeconomicfactors relating to the structure of a developing economy and how that economy can create effectivedomestic and international growth

Resources is the overall geographical location, natural resources, the national financial system,human resources, policy guidelines, and capital markets in both domestic and overseas that can beexploited to serve the economic development of a given territory

Resource is not immutable It changes over space and time and people can alter their resources

in their favor But in this report, we will just research the economic development relations under thenational resources view of four main fields: human resources, natural resource and environment,financial capital, science and technology

Content

Part A: Natural resource and environment for development

I Concept of Natural resources

II Environment for development

III Real situation of some countries.

Part B: Labor resource and economic development

I Concept of Human Resources

II Characteristics

III Analyze the role of Human Resource for Economic Development

IV Solution for human resource development

Part C: Financial capital for development

I Concepts

II Sources of financial capital.

III Applying financial capital through some countries

Part D: Science and technology resource and development

I Introduced

II The Importance of S&T to Development

III The impact of science and technology for the development of the US economy

Part A: Natural resources and environment for development

The flows of nonfood and nonfuel materials through the economy have significant impact onour lives and the world around us Growing populations and economies demand more goods, services,and infrastructure In1900, on a per-weight basis, almost half of the materials consumed were fromrenewable resources, such as wood, fibers, and agricultural products, the rest being derived fromnonrenewable resources By 1995, the consumption of renewable resources had declined dramatically,

to only 8 percent of total consumption Since the beginning of the 20th century, the types of materialsconsumed have significantly changed

Natural resources are the basis of natural production process It is the source material for both directservice life, has served for economic development The richness and diversity of natural resourcescreate important advantages for the development Besides, geographical location create facilitate orcause difficulties in the exchange, access, or the development between regions within countries,between different countries In the trend of integration of the world economy, geographic location is aresource that helped shape the most profitable in the international division of labor

I Natural resources for development

Natural resources play a significant role in economic development Out of all those naturalresources; some are exhaustible or nonrenewable type such as minerals and oils which can be used onlyone time Once exhausted, they are depleted completely But some others, like land, water, fisheriesand forests are renewable or inexhaustible in nature If proper care is taken, they can be utilizedendlessly

Hence for sustainable development, careful use of the exhaustible resources and maintenance of thequality of renewable resources are needed For that, certain objectives should be followed

But, first of all, we are going to talk about some characteristics of natural resources

1 Concept of natural resources

Natural resources occur naturally within environments that exist relatively undisturbed byhumanity, in a natural form A natural resource is often characterized by amounts of biodiversity anddiversity of earth material existing in various ecosystems Or another way, natural resource is anythingthat people can use which comes from nature People do not make natural resources, but gather themfrom the earth Examples of natural resources are air, water, wood, oil, wind energy, hydro-electricenergy, iron, and coal Refined oil is not a natural resource because people make it

The demand for resources can change with new technology, new needs, and new economics Somematerial can go completely out of use, if people do not want it any more Demand of natural resources

is very high, but availability is very low

2 Some characteristics of natural resources

Resources have three main characteristics: utility, limited availability, and potential for depletion orconsumption Resources have been variously categorized as biotic versus a biotic, renewable versusnon-renewable, and potential versus actual, along with more elaborate classification

 All of them are formed originally It means that natural resources experience the formation anddevelopment processes of the history

 Natural resources are allocated irregularly among different areas/regions on the earth,depending on geological construction, climate of each region

 Almost all of them are rare, so people must have the sense in protecting and saving naturalresources in using process

3 Classification of natural resources

Natural resources are so rich and diversified They include types of energy (solar energy, wind energy,tide energy, ), atmosphere, water, land, living things (plants and animals) Natural resources areindispensable for all the production activities of society

 Renewable resources – Renewable resources can be replenished naturally Some of theseresources, like sunlight, air, wind, etc., are continuously available and their quantity is notnoticeably affected by human consumption

 Non-renewable resources – Non-renewable resources either form slowly or do not naturallyform in the environment Minerals are the most common resource included in this category.Some resources actually naturally deplete in amount without human interference, the mostnotable of these being radio-active elements such as uranium, which naturally decay into heavymetals Of these, the metallic minerals can be re-used by recycling them, but coal and petroleumcannot be recycled.

With the method of classification above, we have appropriate policies of using and exploiting naturalresources that are efficient and good for the environment.(Vang, 2005)

4 Natural resources management

Natural resource management is a discipline in the management of natural resources such as land,water, soil, plants and animals, with a particular focus on how management affects the quality of lifefor both present and future generations

Management of natural resources involves identifying who has the right to use the resources and whodoes not for defining the boundaries of the resource The resources are managed by the users according

to the rules governing of when and how the resource is used depending on local condition

A successful management of natural resources should engage the community because of the nature ofthe shared resources the individuals who are affected by the rules can participate in setting or changingthem

Some countries have plenty natural resources and manage well; some countries don’t develop althoughthey have abundance natural resources, because of managing bad But many countries that they havepoor resources, but they know how to manage still develop

5 Roles of natural resources for economic development

In recent years economists have recognized that, along with physical and human capital,environmental resources should be viewed as important economic assets, which can be called naturalcapital However, the services provided by natural capital are unique

Natural environments, especially natural resources are necessary and indispensable elements inproduction process of human society The natural resources itself cannot produce goods, material forsocial But if we don’t have natural resources, there are no production processes

 Scale and speed of development of production and social depend heavily on natural resources Natural resources are usually base to develop some exploiting industries, processing industries andprovide materials for other economic industries, so they contribute to transfer the economic structure inthe nation The richness of natural resources, especially energy helps a nation depend less than otherones and that nation can grow stably, independently when the world market of natural resources isunstable

Natural resources contribute to the process of capital accumulation (export) With most of thecountries, capital accumulation requires a long process, related to the national consumption and the

attraction of foreign investment However, many countries have a large amount of natural resources;they can shorten the process of capital accumulation by exploiting raw materials to sell for creating theoriginal capital of their nations.

Natural resources set the direction of socio-economic development

 Natural resources play significant roles in economic development

6 Distribution of national resources in Southeast Asia

Southeast Asia is rich in forest, mineral, and water resources, especially some of the largest remainingstands of primary forest Indonesia, Malaysia, and Myanmar are all major log exporters The regionalso has some of the world’s largest deposits of coal, tin, nickel, copper, and gold Indonesia is themajor exporter of coal and metal ores

Natural resource-rich Indonesia flourished as raw material demand in China soared Indonesia isworld's largest coal, tin and nickel production national; and by far this country is the largest exporter ofpalm oil in the world

7 Economic development and natural resource protection

Economic system and eco-environmental system do not harmonize each other, but they show clearconflicts in the development of modern society One of the main reasons is to make the economy and togain the economic goals, so eco-environmental relations are ignored They do not apply the advance ofscience and technology in protecting and improving natural resources as well as the environment

To the developing countries, natural resources have a big role, contributing significantly to the growthrate of economy But, if they overexploit these natural resources, ecological system will be disturbedand environmental pollution will increase rapidly from time to time That is the big consequence due toeconomic development without caring about environmental protection

Economic and social development is the process of improving the living conditions of physical andhuman spirit through the production of material goods, improving social relationships, improving thequality of culture Development is the general tendency of the individual and mankind in the process ofliving Between environment and development has the closely relationship: environment is thegeographical and the objects of the development, but development is the causes of environmentalchanges

All of Southeast Asia falls within the warm, humid tropics, and its climate generally can becharacterized as monsoonal The animals of Southeast Asia are diverse; on the islands of Borneo andSumatra, the Orangutan (man of the forest), the Asian Elephant, the Malayan tapir, the SumatranRhinoceros and the Bornean Clouded Leopard can be also found

The trees and other plants of the region are tropical; in some countries where the mountains are tallenough, temperate-climate vegetation can be found These rainforest areas are currently being logged-over, especially in Borneo

1 Environment and two kinds of environment

Environmental is including natural factors and man-made material factors closely related to each other,surrounded by humans and affected life, production, survival and development of human and natural.

In short, the environment is everything around us, for us the basis to survive and thrive

 Natural environment include natural factors such as chemistry, biology that exists outside thewill of man, but also affected by human activities Natural environment give the air we breathe,land for housing construction, propagation, breeding , give people the kind of mineral resourcesneeded for production, consumption, and a place to contain, waste assimilation, give us beautyfor recreation, to make human life more abundant

 The social environment is overall relations between people Those are the rules, institutions,committed, regulations, assess at various levels such as the United Nations, the Association

of State, national, provincial and district authorities, village, they minorities, families, groups,religious organizations, unions Social environment is driven by human activity in a certainframework, creating collective strength facilitate the development, making the lives of otherpeople with other organisms

2 Roles of environment in human life and economic development

2.1 In human life

 Containing and providing resources for the production process

 Being ideal living space for animals and humans

 Containing waste of human (it’s the vital function of environment)

 Storing and providing information to human

The main reason is that in our society the environment has become a scarce resource Since economics

is about how to deal with scarce resources, it can often be useful when tackling environmentalproblems

One way of using economics is to ensure that the costs and the benefits of environmental measures arewell balanced Although it is difficult to estimate costs and benefits, there is an increasing demand thatthis is done before environmental policy is decided on a European level With the use of market-basedinstruments, environmental goals can sometimes be reached more efficiently than with traditionalcommand and control regulations

Economic and environmental objectives are often perceived as being contradictory It is believed that achoice must be made between one and the other and that both cannot be achieved concurrently Thefacts shows that they this perception is wrong, and that economy and environment can go together.For example, a true and success story of European Unions

Wind power generation capacity increased by nearly 19% in 2006 and photovoltaic solar powercapacity shot up by 57%

The technology for wind energy is now competitive Its costs have decreased by around 3% per yearover the last 15 years For solar photovoltaic cells, unit costs have fallen tenfold over the past 15 years.This is a direct result of economies of scale and technological and process breakthroughs Employment

in the renewable energies sector is predicted to increase quickly as the shift towards clean energyproduction It is expected that the sector will have up to 2 million additional jobs by 2010 taking intoaccount jobs lost in the conventional energy sector.

However, environment is still polluted, parallel with economic development process

3.1.1 Air pollution: Air pollution is by far the most harmful form of pollution in our environment.

Air pollution is cause by the injurious smoke emitted by cars, buses, trucks, trains, andfactories, namely sulphur dioxide, carbon monoxide and nitrogen oxides.Chlorofluorocarbons (CFC), released from refrigerators, air-conditioners, deodorants andinsect repellents cause severe damage to the Earth’s environment This gas has slowlydamaged the atmosphere and depleted the ozone layer leading to global warming

3.1.2 Water pollution: caused industrial waste products released into lakes, rivers, and other

water bodies, has made marine life no longer hospitable Water pollution can also indirectlyoccur as an offshoot of soil pollution – through surface runoff and leaching to groundwater

3.1.3 Noise pollution: Noise pollution, soil pollution and light pollution too are the damaging the

environment at an alarming rate Noise pollution include aircraft noise, noise of cars, buses,and trucks, vehicle horns, loudspeakers, and industry noise, as well as high-intensity sonareffects which are extremely harmful for the environment Maximum noise pollution occursdue to one of modern science’s best discoveries – the motor vehicle, which is responsiblefor about 90% of all unwanted noise worldwide

3.1.4 Soil pollution: This can also be called soil contamination, is a result of acid rain, polluted

water, fertilizers etc., which leads to bad crops Soil contamination occurs when chemicalsare released by spill or underground storage tank leakage which releases heavycontaminants into the soil These may include hydrocarbons, heavy metals, MTBE,herbicides, pesticides and chlorinated hydrocarbons

3.2 Environment pollution in SEA

Southeast Asia is likely to be one of the most vulnerable areas to the previous state of climatechange, because most of the 500 million people live in the region delta area or low altitude islandscompared with sea level These areas are susceptible to flooding if the sea level rises due to globalwarming phenomenon However, this issue has not received adequate attention from the public and thegovernment of the country

More seriously, the natural absorption of greenhouse gases in Southeast Asia have tended to reducebecause of deforestation, especially in areas that are already covered with vegetation such asKalimantan (Indonesia), Sarawak and Sabah on the island of Borneo (Malaysia) and the mountainousregion along the Mekong river in Vietnam, Laos, Cambodia, some areas of Myanmar, Thailand

According to experts, in recent years, the air quality of the Southeast Asian countries is about 25-30million hectares of peat land, accounting for 60% of the total area of peat lands in the world has beencontamination by across borders haze

In Vietnam, the effect of air pollution across borders is unclear but appears certain expressions

Moreover, “in the big cities in Vietnam, air pollution affects people's activities anytime, anywhere,especially Hanoi This is one of the most polluted cities in Asia, and most polluted cities in SoutheastAsia, "said Jacques Moussafir, ARIA Technologies France Companies warned

4 Some environmental policies

4.1 Environmental taxes

The biggest source of environmental tax revenue comes from petrol and diesel (energy charges) Taxrevenues from pollution and resources — such as environmental charges from water use or landfills —generally contribute a very small share of tax revenue

Ex: Sources of tax revenue in EU-25 (2004)

4.2 International agreements on climate change

Currently, countries in the region, except Laos and Brunei, has participated in international agreements

on climate change - including the 1997 Kyoto Protocol and the UN Framework Convention on ClimateChange in 1992

4.3 The subway system and applies strict standards of quality control emissions

4.4 Rainmaking plane (Malaysia, Indonesia)

4.5 Air purifiers high technology, green tree

4.6 Subsidies: can create positive and negative market distortions Energy subsidies amount to €29

billion annually in the EU-15 The level of subsidy in the EU attributed to renewable energies is less than the amount of subsidies allocated to coal production In Germany, for example, subsidies given to coal production are on a downward trend but remained at €2.7 billion in 2005

III Real situation of some countries, regarding national resources and environment for

development

1 Japan and natural resources

I will start with a question of Prof Nguyen Lan Dung: “what is different between Vietnam and Japan?”Japan has almost 378 thousand km2 in wide, not much more than our country(almost 330 thousandkm2) but Japan consists about 6800 islands, of which only five major islands Moreover, 67% of theterritory is …mountain! Farmland is often only 0.9% of the area This rate is 6.93% in our country Weare not poor because the soil

Although arable land is limited, agricultural resources are significant Japan’s crop yields per land areasown are among the highest in the world, and the country produces more than 60 percent of its food

There are about 80 active volcanoes in Japan (10% of the total number of active volcanoes in theworld) Japan is the country with geological instability so earthquake is usually Every year, fourhurricane and tsunami poured into Okushiri, made 230 people dead and wounded

Moreover, they lack of fossil fuel resources, particularly petroleum Small domestic oil fields innorthern Honshu and Hokkaido supply less than 1 percent of the country’s demand Domestic reserves

of natural gas are similarly negligible Coal deposits in Hokkaido and Kyushu are more abundant butare generally low grade But Japan has had to build its enormous industrial output and high standard ofliving on a comparatively small domestic resource base.

Japan is a country of small land, high population and very few natural resources Japan has to face withserious polluted environment problems So what are factors that make Japan become a strongly developcountry nowadays? How they manage well very few natural resources?

 While many power countries were working on arms race, Japan focused on economicdevelopment

 Cultivation areas are narrowed a lot but thanks to technical improvements in agricultural,productivity increased rapidly Japan doesn’t choose self-sufficient in food Food will beinvested in other industries, including biotechnology (some country biotechnology centers such

as NITE, RIKEN)

 Agricultural products used as raw material for fermentation of microorganisms that has generecombination (gen tái tổ hợp) to produce pharmaceutical (dược phẩm)

 Educational achievement

 Has good environment for each individual to develop

Natural resources are a special form of wealth Unlike other forms of wealth, we do not produceresources that merely exploit to use And natural resources itself have different level of development

30 years ago, Indonesia and Niger-ria had equal per capital income and heavily depended on revenuesfrom sale of oil But today, Indonesia’s per capital income is 4 times as Niger-ria’s

In fact, many countries own a lot of oil and gas, minerals but failed in economic development Incontrast, some other countries lack potential natural ability, but they did success in economicdevelopment (such as Hong Kong, Korea, Singapore, and Taiwan-Asian Tigers)

The economists call this paradox is the "resources curse” to describe the phenomenon of countries thathave abundant natural resources such as oil and minerals but they develop weaker than the countriesthat have less advantages in natural resources Africa is the clearly evidence for this curse They rich inmineral resourcesbut they still have to face with disease and poverty Another example such as Indian,which has abundant natural resources such as: coal (fourth-largest reserves in the world), iron ore,manganese, mica, bauxite, rare earth elements, titanium ore, chromite, natural gas, diamonds,petroleum, limestone, arable land but they still don’t develop strongly

Researchers have some causes to explain this phenomenon such as lack of specializes, instability ofrevenues, lack of effective investment in education, or corruption One of causes we have to tell, it’s

“Dutch Disease”

2 Effects of Dutch disease (Dutch disease)

It’s a term of economic risk occurring when a country boosts export of natural resources leads toreduce manufacturing industry This term is also sometimes used to refer the risk occurring when acountry depend on external resources leads to the decline of domestic resources The Economist

Magazine set out the term in 1977 to describe the decline of the manufacturing area of the Netherlandswhen this country boosts export natural resource

The term "Dutch disease" originates from a crisis in the Netherlands in the 1960s that resulted fromdiscoveries of vast natural gas deposits in the North Sea The newfound wealth caused the Dutchguilder to rise, making exports of all non-oil products less competitive on the world market

3 Natural resources of Singapore

As Singapore is a city-state with not much land area, it is not particularly rich in natural resources.Natural resources in Singapore can be categorized into nonrenewable resources, renewable resourcesand water resources The conservation and management of water resource has been a huge challengefor countries across the globe In a country like Singapore, where land is at a premium, the use of land

to conserve water has to be integrated with the use of land for socio economic growth Water itselfbeing a scarce resource, has to be used judiciously Singapore has come up with an efficient watermanagement policy, to ensure sustainability of water resources over a period of time The Government

in Singapore has taken initiatives by investing in infrastructure, upgrading technology, devising watermanagement strategies to manage water resource

Part B: HUMAN RESOURCE AND ECONOMIC DEVELOPMENT

I Concept of Human Resources

For each country, the human resources are the most important factors for thedevelopment of rapid and sustainable economic In addition, that factor that each country canuse their policies (in many different ways) to adjust and control It would be more effectivethan many other inputs of economic Therefore, we can say Socio-Economics development ofeach country depends on the labor force (human resource), labor quality, stability andfrequency of employment

Human resources are a term that is used in business to refer to the people who make upthe workforce of an organization, business sector or an economy It is the overall factors insideand outside of each individual in working age and has capacity to work to ensure creativity andother contents for success, achieve the objectives of organization

- Human resources are assessed by the quantity and quality of Human resources

In terms of quantity, Human resources include:

+ People in working age that have a job to create income

+ Another people in working age and able to work but unemployed, be students,homemakers

+ The number of human resources is expressed through the criteria of scale and growth

of human resources The number of human resources plays a crucial role in the development ofSocio-Economics If the number does not match the social and economic development willaffect that development

Human resource quality

The quality of Human resources evaluated by many factors such as intelligencedepartment, qualifications, knowledge, ethics, skills, health and beauty… of employees.

II The characteristic of human resource.

1 Population.

Population is the basis for the formation of the Human resource The fluctuation of thepopulation is a result of demographic processes and it affects directly or indirectly to the size,structure and distribution of population in working age

The world population of 7.2 billion in mid-2013 is projected to increase by almost onebillion people within the next twelve years, according to official United Nations populationestimates (medium variant, 2012 Revision) It is projected to reach 8.1 billion in 2025, and tofurther increase to 9.6 billion in 2050 and 10.9 billion by 2100 Virtually all future populationgrowth will be in developing countries, the poorest of these countries will see the greatestpercentage increase These countries have especially low incomes, high economicvulnerability, and poor human development indicators such as low life expectancy at birth, verylow per capita income, and low levels of education

1.2 Population growth & Economic development

The existing state of knowledge does not warrant any clear-cut generalization as to theeffect of population growth on economic development in today's less developed areas Sometheoretical analyses argue that high population growth creates pressures on limited naturalresources, reduces private and public capital formation, and diverts additions to capitalresources to maintaining rather than increasing the stock of capital per worker Others point to

positive effects such as economies of scale and specialization, the possible spur to favorablemotivation caused by increased dependency, and the more favorable attitudes, capacities, andmotivations of younger populations compared with older ones The actual evidence on theassociation between growth rates of population and per capita income does not point to anyuniform conclusion, though the true relationship may be obscured in a simple two-variablecomparison.

1.2.1 Population and Accumulation.

A pioneering model of population’s effect on material welfare was written in 1958 bydemographer Ansley Coale and economist Edgar Hoover Their work falls squarely into thecamp of population “pessimists” or ant catalysts, those who perceive population growth asharmful to economic development Coale and Hoover argued that a reduction in birth rate couldraise per capita income in three important ways:

First, lower fertility levels would slow future labor force growth The amount ofinvestment then needed to provide a constant amount of capital per worker for a growingnumber of worker (capital widening) would go down and permit more investment to be used toincrease capital her worker ( capital deepening )

Second, with lower fertility and fewer children, public funds could be diverted awayfrom education and health expenditures and toward physical capital, which Coale and Hooverassumed would be a more productive

Third, slower population growth would lower the dependency ratio, the ratio of the working-age population (usually 0-14 and 65 and over) to the working age population

non-1.2.2 Population and productivity.

In addition to its potential effects on the accumulation process, population growth alsocan influence the other important determinant of economic growth, the productivity of assets.Concern over an imbalance between population and food supplies continues to be voiced as isconcern over how population pressures will affect the availability of fresh water and energy,the spread of infectious diseases, the degree of biodiversity and climate change, and the overallsustainability of the environment Thomas Malthus’s thinking places him squarely in the camp

of population pessimists But some later economics, population “optimist”, would viewpopulation growth as having the potential to increase factor productivity Several reasons ofsuch a relationship have been proposed

Firstly, a larger population, the result of more rapid population growth, can yieldeconomies of scale in production and consumption

Secondly, there is some evidence that population pressures can induce technologicalchange,

The last, economist Julian Simon, perhaps the greatest population optimist of all, arguesthat a larger population contains more entrepreneurs and other creators, who can make majorcontributions to solving the problems of humanity

Therefore, population is only one of many factors that affect the nature and quality of theinstitutional environment that conditions the introduction of new technologies and method ofproduction.

1.2.3 Population and market failures.

The varied influences of population growth on economic and social variables, growingpopulations may or may not be detrimental to economic development depending on time, place,and circumstances The revisionist answer is a familiar one to economists: market failures,situations in which the costs or benefits of reproductive behavior by individuals are not fullyborne by them

Rapid population growth may hasten depletion of natural resources or harm theenvironment A similar argument can be made about many government services, whether ineducation, health, sanitation, or transport Each family may be acting rationally, but if thepopulation grows too quickly, government services may not expand quickly enough Theresulting congestion of government services may produce lower quality of life for all The rootcause of the problem is not population growth but the inability of government to finance theincreased demand for publicly provided goods and services In both these examples, populationgrowth may exacerbate an existing market failure

2 Education.

- Education as an investment.

Education increases labor market earnings There is considerable evidence that educationand experience play a large part in explaining the in labor market earnings This is true for -different countries and it reinforces the importance of education as a tool for lifting incomes,alleviating poverty, and improving income distribution

-Education and productivity

How education enhances productivity has been studied most for the case of farmers,where researchers can find a long tradition of econometric production and management studies.Based on this body of studies, there are three main channels through which education can affectproductivity

Education might enhance the productivity of measured inputs, including that of an hour

It is well established that a healthy population is important ingredient for economicgrowth development Good health increases the worker strength and stamina and enableshim/her to work longer hours and concentrate more effectively There is little argument that ahealthy and fit workforce is better able to increase national productivity.Healthier people tend

to be more economically productive, since they are more energetic and mentally more alert Ahealthier worker is able to harvest more crops, build more furniture, assemble more computers,

or make more service call than a worker that is ill or lethargic Healthier workers not only aremore productive while they work, they lose fewer workdays because of illness The types ofwork available to much low- income, low- skilled workers typically rely more on strength andendurance than higher- skilled desk jobs, putting a premium on physical health

Beyond its impact on labor productivity, improved health can influence the other keychannel for achieving economic growth, increased saving and investment

4 Cultural

Culture is a system of values physical and mental which created by labor Thecommunity is confirmed, accumulated, creating the identity of each ethnic group,each society

4.2 The relationship between cultural and human

Culture created by man, dominates the whole of human activity, themanufacturing operations to provide energy to the human spirit, and makes people moreperfect Culture is so spiritual foundation of society, and the goal of development.Because after all, all the developers have decided that human culture is qualified tocultivate increasing, as the whole man and society, making people and society grow,progress to a prosperous life, liberty, happiness and civilization

Culture is the driving force of development, because all human development isthe dominant decision Culture creatives and mobilizes endogenous tremendous strength

in humans, contributing to social development

Nowadays, a rich or poor country that is not only more or less labor, capital,technology and natural resources, but also it mainly is in having the ability to promotethe highest level of creative potential of human resources or not? Creative potential lies

in the cultural elements, that is, in the will of self-reliance and the ability to understand,spiritual, moral, lifestyle, aesthetic level of the individual and of the community

A proper policy development makes cultural elements penetrating all areas of humancreativity: cultural production, cultural management, cultural lifestyle culturalcommunication, cultural activities in the family, social, cultural exchanges andcooperation in international In other words, the more intellectual content, culturalcontent in the areas of life the higher the possibility of economic development - socialbecoming a reality

Culture is the regulator of the development Because culture promotes positiveside, limits the negative side of the objective factors and subjective, of the conditionsinside and outside; ensuring that the development is harmonious, balanced and longdurable.

4.3 The role of cultural and economic development.

 Firstly: Cultural and Economic dialectical relationship with each other

Culture is not only just a goal, but it also is the driving force in the process of economicdevelopment Each step of the economic growth creates new development of culture; culturaldevelopment also promotes to economic growth

 Secondly: Culture is the foundation of social spirit, the motivation, the goal ofeconomic development

Culture is the goal of the economy, because economic development to humandevelopment Cultural play a role as immediate and long-term goals to economic growth

Culture affects the economic development primarily because it is the foundation spirit,motivation, and through it the ultimate goal set for all strategic economic development plan:All plans Economic growth must aim to ensure the highest most basic requirement is to protectthe people, serve the people, improving the quality of human life In order to have sustainableeconomic growth model derived from culture and in cultural qualities, such as high-qualityhuman resources

 Thirdly: Cultural promote stable economic growth

`Proportionate cultural development is basis for economic development in acomprehensive manner Cultural and economic growth is multi-dimensional relationship.Culture expressed primarily through building human functions, fostering human resources andintellectual soul, ability, proficiency, skills, ethics, personality, lifestyle and personalcommunity So that the culture will be the indispensable conditions to promote stable economicdevelopment Lack of a spiritual foundation of progress, there will be no healthy sustainableeconomic development

III Analyze the role of Human Resource for Economic Development.

Although human resource (labor quality as well as quantity) plays an important role foreconomic but there is growing or not depends on policy, management of labor resources(human resource) of each country If government know how good labor management and haveeffective appropriate policies that will bring surprising results for the economic development ofthe country We can divide into three groups to analyze:

 Country has plentiful human resources - government manages effectively Ex: Japan

 Country has plentiful human resources – government manages ineffectively Ex: Vietnam

 Country has few human resources – government manages effectively Ex: Singapore

1 Country has plentiful human resource- government manages effectively.(Ex: Japan).

Japan is a country located in East Asia, the Pacific Ocean to the west Its area about377,944 km2 but there are 6800 islands, of which only five major islands, further to 67% of theterritory is mountainous! Farmland is only 0.9% Japan has about 80 active volcanoes (10% ofthe total number of active volcanoes in the world) Japan is the country with geologicalinstability so there are many earthquakes

So Japan is a country with few natural resources, but it is populous countries It has apopulation of approximately 126.43 (2014-wiki) million people (ranked 10th in theworld).According to the pyramid population; working age in Japan is very crowded So Japanhas favorable conditions for human resource The total Japan’s labor force is 65.62 million(2013est.)

In which, Labor force - by occupation:

 Agriculture: 3.9%

 Industry: 26.2%

 Services: 69.8% (2010 est.)

Addition, Japan is developed country with per capita income is $ 37.683 (2014-wiki)

Japan develops a technologically advanced economy For three decades, overall real economicgrowth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a4% average in the 1980s.Japan in 2013 stood as the fourth-largest economy in the world aftersecond-place China, which surpassed Japan in 2001, and third-place India, which edged outJapan in 2012 The new government will continue a longstanding debate on restructuring theeconomy and reining in Japan's huge government debt, which is exceeding 230% of GDP

So what the reasons Japan has developed although the natural conditions are not good.Human resource (labor resource) has played an important role along with the proper policy ofthe country

1.1 Policy of Japan about population development.

Japan has favorable conditions for human resource But according to the populationpyramid in the future Japan will become a country which has the shortage in labor Shortage in

labor will be reducing economic growth and lowering nations' gross domestic product SoJapan had many policies the aging of Japan is thought to outweigh all other nations, as thecountry is purported to have the highest proportion of elderly citizens The decline in theworking aged cohort may lead to a shrinking economy if productivity does not increase fasterthan the rate of its decreasing workforce Japan would need to increase both the number of itsworkforce and industrial productivity to help support its aging population such as:

 Japan is addressing these demographic problems by developing policies to help keepmore of its population engaged in the workforce

 The Government has introduced incentives, such as free childcare, increase in childbenefits and 6-month maternity leave

 Japan has focused its policies on the work-life balance with the goal of improving theconditions for increasing the birth rate To address these challenges, Japan has establishedgoals to define the ideal work-life balance that would provide the environment for couples

to have more children

1.2 Quality of labor (education)

Postsecondary system includes integrated university, college and college of technology

as well as specialized training schools directly responsible for the training of human resourcesfor the country Colleges of technology and specialized training take the graduating junior highschool The basis of post-secondary education must comply with the regulations of the Ministry

of Education on standards established colleges, colleges of technology and universities

In order to mobilize social resources for the training of human resources, the governmentencourages and creates favorable conditions for the formation of the educational system ofvocational training in companies and enterprises

Not only is a national education development that Japan also attaches great importance

to acquire the experience, achievements and training of human resources of other developingcountries, the appointment of studying abroad State-focused, encouraging, with many differentfunding sources, the use of funds of the State, the school, of all employers, other foreignpartners

1.3 Healthcare for people

Japan is facing a demographic revolution in the decades ahead as the population ages.Governments face fiercely competing demands for resource allocation among prevention,treatment and basic science interest groups Medical care system faces a diverse mix of patientswith increasing rates of functional disability Systems are financed by a large number ofemployer-based private insurance plans in addition to public insurance for the poor and theelderly Japan, on the other hand, already boasts the world's lowest infant mortality rate andlongest life expectancy

2 Country has plentiful human resources– government manages ineffectively (Ex: Vietnam.)

Contrary to Japan, Vietnam is a country with a small area, but there are many richnatural resources It is country on the Indochina Peninsula in Southeast Asia with area about332,698 km2 As a coastal country, Vietnam has many major sea ports with over its coastline is3,444 km long Vietnam has many advantages from natural resources Vietnam has apopulation of approximately 90,73 (2014-wiki) million people (ranked 13th in the world).According to the pyramid population; working age in Vietnam is very crowded So Vietnamhas favorable conditions for human resource The total Vietnam’s labor force is 52.93 millionaccounted forapproximately58.3% of total population (2013 est.).

In which, Labor force - by occupation:

 Agriculture: 48%

 Industry: 21%

 Services: 31% (2012)

Vietnam is developing country with per capita income is $4,000 (2013 est.)

Although Vietnam has large human resource it also has the benefit of natural resources.However, Vietnam is less developed There are many reasons explain for this problem But, themain reason is use and management of human resources is not effective Vietnam has been, formuch of its history, a predominantly agricultural civilization based on wet rice cultivation.However, the Vietnam War destroyed much of the country's agrarian economy, leading thepost-war government to implement a planned economy to revitalize agriculture andindustrialize the nation Now, agriculture's share of Vietnam's GDP has fallen in recentdecades, declining from 42% in 1989 to 20% in 2006, as production in other sectors of theeconomy has risen

2.1 Policy of Vietnam about population

The population explosion problem is cared by the government of Vietnam Thegovernment of Vietnam will decide to penalize parents who have more than two children "Weare considering an adjustment to our policy appropriate to the circumstances of the country,"Truong Thi Mai, chair of Vietnam's Parliamentary Committee of Social Affairs said Whileeconomic underdevelopment, family have many child means to lack the invest health care and

education make the economy less and less developed So, the first policy is reducingpopulation that is important and necessary for economic development.

2.2Quality of labor (education)

Human resources are plentiful, but without the proper care; has not been planned,exploitation; not be upgraded; have not been trained carefully The quality of human resources

is not high, leading to conflict between quantity and quality

Combination and supplements, a mixture of human resources from farmers, workers,intellectuals, not good, still divided, plus the lack of capacity to work together to implementthe industrialization and modernization of the country

So, this workforce has not been fully exploited, not all the training, which affect thequality of human resources and affect the economic development - social Vietnam

2.3Healthcare for people

To develop human resources in Vietnam current and long term needs to care the health

of everybody and especially health of children Cannot speak to the development of humanresources when born children stunted, sickly

There are many policies which are given by government such as: With the aim ofhelping the poor access public health care services and reduce health care expenditures (HCE),the Health Care Funds for the Poor policy (HCFP) was implemented in 2002

3 Country has few human resources – government manages effectively Ex: Singapore

Singapore is a modern city-state and island country in Southeast Asia It is a countrywith a small area (about 718.3 km2) and population of approximately 5,47 (2014-wiki) millionpeople with labor force: 3.444 million

Labor force - by occupation:

 Agriculture: 1.3%

 Industry: 18.6%

 Services: 80.1%

Although Singapore is a country with a small area and low population but Singapore has

a highly developed and successful free-market economy Beside, Singapore is successfulcountries in developing human resource policies so Singapore has become one of the four

‘’Dragons of Asia’’ Singapore has the world's highest percentage of millionaires Acutepoverty is rare in Singapore Singapore has per capita income is $ 62.400 (2013 est.)

Singapore attracts a large amount of foreign investment as a result of its location; it is aremarkably open and corruption-free environment, stable prices, and a per capita GDP higherthan that of most developed countries

3.1 Policy of Singapore about population.