Resource

A resource is any physical or virtual entity of limited availability. In most cases ethic or commercial factors require resource allocation through resource management.

Types of values attached to resources

As resources are very useful, we attach some value to them. Resources help to produce goods so they have economic value. Natural resources like forests, mountains etc. are very beautiful so they have aesthetic value. Gifts of nature such as water also has a legal value because it is our right to enjoy it. On the other hand, resources have an ethical value as well because it is our moral duty to protect and conserve them for the future generations.

Characteristics of resources

Resources have three main characteristics: utility, quantity (often in terms of availability), and use in producing other resources.

Value of a resource

The value or the importance of the gifts of nature depends upon several factors:

The needs of the people

Human needs are not uniform all over the world. Over the years, they have grown and become more complex with the progress of human society. In very developed societies, people use a variety of products which are highly processed. On the other hand, in developing countries, the consumption of processed items is much less; while primitive communities like the Pygmies in Africa hardly use any processes items.

The level of technology possessed by the people

The level of technology also influences the utilization of resources. For example, the Prairies of North America were inhabited by the American Indians who used the Prairies as hunting grounds. Later when the European settlers arrived, they used the Prairies for agriculture. Today the Prairies are famous for the cultivation of wheat and the rearing of animals on a commercial basis.

Time

The value of the resource changes with time as well. For example, water was used by early man purely for his personal needs. As time went on, water was used by humans for agricultural purposes namely irrigation. Later, water was also used as a means of transportation and humans built boats to travel on water. Nowadays, water is also used to generate electricity.

Types of resources

Natural resources

Natural resources are derived from the environment. Many of them are essential for our survival while others are used for satisfying our wants. Natural resources may be further classified in different ways.

On the basis of origin, resources may be divided into:

Biotic - Biotic resources are the ones which are obtained from the biosphere. Forests and their products, animals, birds and their products, fish and other marine organisms are important examples. Minerals such as coal and petroleum are also included in this category beacause they were formed from decayed organic matter.
Abiotic - Abiotic resources comprise of non-living things. Examples include land, water, air and minerals such as gold, iron, copper, silver etc.

On the basis of the stage of development, resources may be called:

Potential Resources - Potential resources are those which exist in a region and may be used in the future. For example, mineral oil may exist in many parts of India having sedimentary rocks but till the time it is actually drilled out and put into use, it remains a potential resource.
Actual Resources are those which have been surveyed, their quantity and quality determined and are being used in present times. For example, the petroleum and the natural gas which is obtained from the Bombay High Fields. The development of an actual resource, such as wood processing depends upon the technology available and the cost involved. That part of the actual resource which can be developed profitably with available technology is called a reserve.

On the basis of renewability, natural resources can be categorised into:

Renewable Resources - Renewable resources are the ones which can be replenished or reproduced easily. Some of them like sunlight, air, wind etc. are continuously available and their quantity does not get affected by human consumption. Many renewable resources can get depleted by human use but may also be replenished thus maintaining a flow. Some of these like agricultural crops take a short time fo renewal; others like water take a comparatively longer time while still others like forests take even longer.

Non-renewable Resources - Non-renewable resources are formed over very long geological periods. Minerals and fossils are included in this category. Since, their rate of formation is extremely slow, they cannot be replenished once they get depleted. Out of these, the metallic minerals can be re-used by recycling them. But coal and petroleum cannot be recycled.

Human resources

Human beings are also considered to be resources because it is the ability of humans that helps to change the gifts of nature into valuable resources. While taking into account human beings as resources, the following things have to be kept in mind:

The size of the population
The quality

Human-made resources

Human-made resources are those aids of production which have been created by humans to transform and utilize the gifts of nature as well as improve or increase productivity. These include:

Equipment, machinery, buildings etc. - These are essential for the production of commodities. They are also referred to as the physical capital of production.
Technology - Technology refers to the process or method by which goods are produced. Rapid industrialization in many parts of the world has been possible due to the advancement in technology.
Legal bodies and political, cultural and social institutions - Legal bodies and political institutions maintain law and order thus ensuring that people are free to move about and carry their business. The policies of the government concerning international trade and foreign investment also influence productivity.

Resource use and sustainable development

The gifts of nature cannot be consumed in their original form. They have to be processed in order to change them into more usable commodities. This is known as resource development. With the rise in human numbers all over the world, the demand for resources has also increased. However, there is a difference in the distribution of resources to different regions or countries. Developed countries use more resources than developing countries.

The rising demand coupled with the over-utilization of resources has led to several problems:

Depletion of resources
Accumulation of resources in the hands of a few
Environmental degradation