16.2

Classical Economics

Believes natural resources (land, iron, water) are finite and must be managed carefully.

Neoclassical Economics

Expands the idea of resources to include labor, knowledge, and capital; focuses on supply and demand.

Ecological Economics

Views economies as part of ecosystems, emphasizing sustainability, recycling, and system functions.

Sustainability

Using renewable resources without harming the environment or depleting resources for future generations.

Sustainable Development

Meeting today's needs without compromising future generations, often using innovative technology and smart projects.

Oil Dependency in Bahrain

Bahrain’s economy heavily relies on oil, which is risky because oil is a finite resource.

Challenges in Bahrain’s Resource Management

Oil scarcity threatens economic stability; limited fresh water and arable land create survival pressures.

Diversification Importance

Reduces reliance on one sector (oil) and protects against resource exhaustion.

Current Diversification in Bahrain

Development of financial services and tourism industries.

Future Implications Without Diversification

Bahrain may face economic collapse once oil runs out; diversification protects long-term economic stability.

Economic consequence of scarcity in Bahrain

Collapse of major industries, unemployment, rising costs of living, and food insecurity.

Comparison of Classical and Neoclassical Economics

Classical focuses on finite resources; Neoclassical adds labor, capital, and knowledge.

Comparison of Classical and Ecological Economics

Classical sees resources as limited; Ecological focuses on long-term environmental balance and recycling.

Comparison of Neoclassical and Ecological Economics

Neoclassical prioritizes efficiency and growth; Ecological integrates environmental health into economic activities.