16.2

💡 Summary

1. Understanding Resources and Economics

• 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.

2. Sustainability and Development

• Development:
  Improving people's quality of life.

• 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.

3. Resource Management in Bahrain (Case Study)

• Resource Focus: Oil, water, and land.

• Oil Dependency:
  Bahrain’s economy heavily relies on oil, but this is risky because oil is a finite resource.

• Challenges:

  • Oil scarcity threatens economic stability.

  • Limited fresh water and arable land create survival pressures.

• Solutions:

  • Diversifying the economy (e.g., finance, tourism).

  • Developing sustainable technologies.

  • Investing in education and innovation sectors.

4. Future Implications

• Without diversification, Bahrain may face economic collapse once oil runs out.

• Diversifying protects long-term economic stability and ensures sustainable development.

• 1. How does oil, water, and land management impact Bahrain’s economy?
  Oil revenues drive wealth, but mismanagement or scarcity can cause economic downturns.

• 2. Economic consequence of scarcity?
  Collapse of major industries, unemployment, rising costs of living, and food insecurity.

• 3. Why is diversification important?
  Reduces reliance on one sector (oil) and protects against resource exhaustion.

• 4. Has Bahrain diversified its resources? Example?
  Yes — development of financial services and tourism industries.

• 5. How can Bahrain diversify further?
  Invest in renewable energy, tech startups, education, and green infrastructure.

Task Comparisons

• Classical vs. Neoclassical Economics:

  • Classical: Focus on physical, finite resources.

  • Neoclassical: Adds labor, capital, and knowledge to the definition of resources.

• Classical vs. Ecological Economics:

  • Classical: Resources are limited.

  • Ecological: Focuses on long-term environmental balance and recycling.

• Neoclassical vs. Ecological Economics:

  • Neoclassical: Economic growth focus.

  • Ecological: Sustainable growth within Earth's limits.

  • Neoclassical: Prioritizes efficiency and market equilibrium without considering ecological constraints.

  • Ecological: Integrates environmental health into the economy, emphasizing the interdependence of economic activities and natural systems.