Introduction

The natural resources sector merits special attention in the context of investment and development. Many Asian and Pacific countries, including least developed countries, are rich in natural resources which present significant opportunities for growth and development. However, these industries have important economic, social and environmental implications that must be managed. While there is great potential for natural resources development to bring social and economic gains to local populations, these endowments do not automatically translate into poverty reduction and development. In fact, investments in the natural resources sector often have a number of negative impacts that may outweigh many of the gains. More broadly, with rising world populations and the rapid development witnessed in emerging economies around the world, the demand for natural resources, including for energy and food, is rising exponentially. This is putting considerable pressure on fragile ecosystems. As a result, the social and environmental sustainability of these investments is of increasing concern.

Related Subject(s): International Trade and Finance