Geography Grade 10 Resources and Development

Grade 10 Geography Study Guide: Resources and Development

1. The Driving Question

"Why do some countries with tons of oil, forests, or minerals stay poor while others with almost no natural resources—like Japan or Switzerland—become rich? If resources are just ‘things in the ground,’ why does having them sometimes make a country worse off instead of better?"

This isn’t just about what a country has—it’s about what it does with it, who controls it, and how the rest of the world treats it. By the end, you’ll be able to explain why a diamond mine in Botswana and a diamond mine in the Congo lead to totally different outcomes.

2. The Core Idea — Built, Not Listed

Imagine two villages sitting on the same gold deposit. Village A sells the mining rights to a foreign company that pays low wages, pollutes the river, and sends all the profits overseas. The villagers get a few jobs, but the land is ruined, and the money disappears. Village B owns the mine itself, taxes the company heavily, and uses the profits to build schools, roads, and hospitals. Same gold, same earth—but one village stays poor, and the other thrives.

This is the puzzle of resource development: it’s not just about what you have, but how you use it, who benefits, and what rules shape the game. Countries rich in resources can fall into the "resource curse"—where abundance leads to corruption, conflict, or over-reliance on one industry—while others turn resources into long-term growth. The difference often comes down to institutions (like laws and governments), technology (how efficiently you extract and use resources), and global markets (who sets the prices and buys the goods).

Key Vocabulary:
- Resource Curse (Paradox of Plenty)
Definition: When countries with abundant natural resources experience slower economic growth, higher inequality, or more conflict than countries with fewer resources.
Example: Nigeria is Africa’s largest oil producer, but most of its people live on less than $2 a day, while Norway—with similar oil reserves—has one of the world’s highest standards of living.
College Note: In development economics, the "curse" is debated—some argue it’s not the resources themselves but weak institutions (like corrupt governments) that cause the problem.

• Sustainable Development
  Definition: Using resources in a way that meets current needs without harming future generations’ ability to meet theirs.
  Example: Costa Rica runs on nearly 100% renewable energy (hydropower, wind, geothermal) and has reversed deforestation by paying landowners to protect forests—proving you can grow the economy and the environment.
  College Note: In environmental science, "sustainability" expands to include social equity (e.g., fair wages) and cultural preservation, not just environmental limits.

• Commodity Dependence
  Definition: When a country’s economy relies heavily on exporting one or a few raw materials (like oil, copper, or coffee).
  Example: Zambia’s economy depends on copper for 70% of its export earnings. When copper prices drop, the whole country suffers—schools close, jobs disappear, and the government can’t pay its bills.
  College Note: In international trade, this is called "export concentration risk"—a major focus of economic diversification strategies.

• Value Addition
  Definition: Processing raw materials into finished goods to increase their worth before selling them.
  Example: Ethiopia grows coffee beans (sold for $1–$2 per pound) but also roasts and packages them into premium brands (sold for $10–$20 per pound). The extra steps keep more money in the country.
  College Note: In supply chain management, this is called "upstream integration"—a key strategy for developing economies to escape the "raw material trap."

3. Assessment Translation

How This Appears on State Assessments (Grade 10):
- Multiple Choice: Questions test your ability to analyze resource scenarios, not just define terms. Common distractors: - Confusing resource abundance with economic development (e.g., "A country with oil will always be wealthy").
- Ignoring global market forces (e.g., assuming a country can set its own prices for commodities like copper or soybeans).
- Overlooking institutional factors (e.g., assuming technology alone can fix resource mismanagement).
Example Question:

"Botswana and Sierra Leone both have diamond mines, but Botswana’s economy has grown steadily while Sierra Leone’s has struggled. Which factor best explains this difference?" A) Botswana has more diamonds.
B) Botswana’s government invested diamond profits in education and infrastructure. ✅ C) Sierra Leone’s diamonds are lower quality.
D) Botswana is landlocked.

• Short Answer/Evidence-Based Writing: You’ll be asked to compare two countries or evaluate a policy using evidence. A proficient response:
• Names specific countries/resources.
• Explains how a factor (e.g., corruption, technology) affects development.

• Uses data (e.g., GDP, HDI, export percentages) to support claims.
  Example Prompt:

  
  

  "Using examples from two countries, explain how the ‘resource curse’ can be avoided. Support your answer with evidence." Model Proficient Response: "Norway and Nigeria both have large oil reserves, but Norway avoided the resource curse by creating a sovereign wealth fund (the Government Pension Fund Global) that invests oil profits for future generations. In 2023, the fund was worth over $1.4 trillion, funding education and infrastructure. Nigeria, however, has struggled with corruption—oil accounts for 90% of its exports, but 60% of Nigerians live in poverty. The key difference is Norway’s strong institutions: transparent laws, low corruption, and policies that diversify the economy (e.g., investing in renewable energy)."

  
  

• AP Human Geography (if applicable):

• Free-response questions (FRQs) often ask you to assess the impact of resources on development, using case studies. A 5 response:
  • Uses specific examples (e.g., "Chile’s copper industry" vs. "Bolivia’s lithium reserves").
  • Links to theories (e.g., dependency theory, Rostow’s stages of growth).
  • Discusses spatial patterns (e.g., "Resource-rich regions often have higher inequality within countries").
    Example FRQ:

    "Explain how the global demand for lithium has affected development in Bolivia. In your response, discuss both economic and environmental impacts." Key for a 5: Mentions Bolivia’s Salar de Uyuni (world’s largest lithium reserve), foreign investment vs. local control, water depletion from mining, and how profits are (or aren’t) reinvested locally.

    
    

4. Mistake Taxonomy

Mistake 1: Assuming "More Resources = More Wealth"
- Question: "Why is the Democratic Republic of the Congo (DRC) one of the poorest countries despite having vast mineral wealth?" - Common Wrong Answer: "The DRC doesn’t have enough resources to develop." - Why It Loses Credit: The question is about why resources don’t lead to wealth, not whether they exist. This answer ignores the resource curse—conflict, corruption, and foreign exploitation.
- Correct Approach: The DRC has cobalt, copper, and coltan (used in phones and electric cars), but: 1. Conflict: Armed groups control mines, using profits to fund war.
2. Corruption: Government officials and foreign companies take most profits.
3. Global Markets: The DRC exports raw materials cheaply, then buys back finished goods (like phones) at high prices.
Key: Resources alone don’t guarantee development—how they’re managed matters.

Mistake 2: Ignoring Global Market Forces
- Question: "Why did Venezuela’s economy collapse in the 2010s despite having the world’s largest oil reserves?" - Common Wrong Answer: "The government didn’t invest in oil production." - Why It Loses Credit: This oversimplifies. The real issue is dependence on oil prices and global politics.
- Correct Approach: Venezuela’s economy relied on oil for 95% of its export earnings. When: 1. Oil prices crashed (from $100/barrel in 2014 to $30 in 2016), revenue plummeted.
2. U.S. sanctions blocked Venezuela from selling oil to key markets.
3. Hyperinflation (prices rising 1,000,000% in 2018) made money worthless.
Key: Commodity-dependent economies are vulnerable to external shocks—prices, sanctions, or demand changes.

Mistake 3: Confusing "Sustainable" with "Environmentally Friendly"
- Question: "Is Norway’s oil industry an example of sustainable development? Explain." - Common Wrong Answer: "No, because oil is a fossil fuel and bad for the environment." - Why It Loses Credit: Sustainability isn’t just about the environment—it’s about balancing economic, social, and environmental needs over time.
- Correct Approach: Norway’s oil industry is partially sustainable because: 1. Economic: Profits fund a sovereign wealth fund ($1.4 trillion) for future generations.
2. Social: High wages and strong labor laws benefit workers.
3. Environmental: Norway invests in carbon capture and renewable energy (e.g., hydropower).
But: Oil is still a finite, polluting resource. True sustainability would require phasing it out.
Key: Sustainability is a spectrum, not a yes/no label.

5. Connection Layer

1. Within Geography → Political Geography
   Resources and development → Geopolitical conflicts
   Understanding how resources shape economies helps explain why countries fight over land. For example, China’s control of rare earth minerals (used in tech) gives it leverage in trade wars, while Russia’s invasion of Ukraine was partly about securing grain exports and gas pipelines.

2. Across Subjects → Economics
   Resource dependence → Macroeconomic instability
   The "Dutch Disease" (when a resource boom hurts other industries) is a key concept in economics. For example, when oil prices rise, Nigeria’s currency (the naira) becomes stronger, making its other exports (like agriculture) more expensive and less competitive globally.

3. Outside School → Your Phone
   Value addition → Why your iPhone costs $1,000
   The cobalt in your phone’s battery likely came from the DRC, where miners earn $3/day. Apple buys the cobalt, refines it in China, and sells the phone for 100x the cost of the raw materials. Now you’ll notice: every tech product is part of a global resource chain—who profits, and who doesn’t?

6. The Stretch Question

"If a country discovers a massive new oil field tomorrow, what’s the one policy it should implement first to avoid the resource curse—and why might that policy still fail?"

Pointer Toward the Answer:
The best first step is usually creating a sovereign wealth fund (like Norway’s) to save and invest profits for future generations. This prevents short-term spending sprees and corruption. But it can still fail if: - The government is corrupt (e.g., Venezuela’s fund was looted by leaders).
- The fund isn’t transparent (e.g., Angola’s fund was secret, leading to mismanagement).
- The country lacks other industries (e.g., if oil prices crash, the fund might not be enough).
The real answer? There’s no one policy—it’s about institutions (laws, accountability, diversification) working together. What would you prioritize?