This paper looks at the various ways through which the dependence on natural resources seems influential in economic policy decision-making in these developing countries.

First, developing countries make economic policies on their exports bearing in mind the natural resources that are available and ready for export. This ensures that all products are sold to earn foreign exchange. Without this consideration, only some exports may become marketable internationally. These few exports then earn foreign exchange, leading to the downfall of other industries that are also involved in goods' export. After the discovery of natural oil in the Netherlands, this country started exporting large amounts of oil to other countries. Oil earned great amount of earnings, making the currency of the Netherlands increase rapidly. Other industries in the export sector became disadvantaged and were almost at the point of shutdown if it had not been for the economists who advised the Netherlands' government corrective measures to have been immediately taken.

Secondly, developing countries make economic decisions that ensure that natural resources are channeled towards faithful economic activities that help in national development. This is necessitated by the fact that most countries that have and abundance of natural resources tend towards renting it, which is according to Richard Auty's statement in Resource Abundance and Economic Development. When prevalent natural resource rents, ill-designated property rights, unaccomplished or missing markets, and vague legal structures combine, the situation may have undermining consequences. These policies are formulated to ensure avoidance of such ultimate consequences.

Thirdly, natural resources influence the economic policies as for their distribution and terms of usage. Usually in the developing countries, these decisions focus on ensuring that all the resources are under control of one ministry or that there is a commission overseeing their usage. This is to ensure that there is no struggle for rent or grabbing of these resources. The fight for massive resource rents may result in the situation when all economic and political power is under control of the elite. The latter, while remaining in power, exploit the rent to soothe their political supporters and, therefore, secure their authority, which, consequently, weakens democracy and slackens the growth.

Furthermore, developing countries make laws that ensure equal distribution of the national resources, which may include unallocated land. The natural resources may be abundant and some may even be unallocated. In such a case, the government establishes the strategies and methods which it is going to use to ensure equal and fair distribution of these resources. This particular policy is important, as it ensures that the resources are received by everyone equally and not by few members of the community who may be influential and may wish to use dubious means to claim all these resources.

In addition, developing countries make economic policies that will positively improve management of economic factors. The economy needs to grow in conducive environment of peace and harmony at almost friendship among the stakeholders. Without this friendliness, the citizens may have a feeling that security is good enough; hence the government may loosen the note on security agencies, which may culminate into a series of attacks by enemies who come to steal and even proclaim ownership of these areas with natural resources. 

Furthermore, if a particular natural resource is available to a given country, then it means that the citizens of that country are going to enjoy the low prices which set upon that particular resource. The country mines the natural resource and after processing it, sells it to the locals at a cheaper price than other unavailable resources. The citizens are, therefore, more likely to buy that resource, meaning that there is going to be circulation of money in the economy of that nation. Those resources that are not available to a given country can only be imported, meaning that they will be priced highly.

To add onto the above mentioned, it should be noted that natural resources are important for survival, because all human needs are derived from them. Natural resources provide people with food, building materials for erection of shelter, and even the clothes, since the latters are obtained from the natural environment indirectly. This means that the survival of human beings is entirely dependent on the natural resources, and their exhaustion may be detrimental to humans. Therefore, many economic policies have been stipulated to ensure the resources are used efficiently so as to have realizable economic growth. Along with economical gain, efficient use of natural resources causes an increase in international political and military power, which is the ambition of all the developing nations. Developing countries strive to be economically stable and, therefore, to have enough capital to venture into technology.

Effective use of naturalresources causes industrialization due to enough capital and raw materials needed. Once the countries become industrialized, they become powerful politically and economically.

In history, it is realized that some European countries used their natural resources effectively and then became rapidly industrialized due to continued prosperity of their industries, especially the ones for coal and iron. This, in turn, gained these European nations increased military power to the advantage of other nations. This, hence, resulted into colonization of South Africa, America, and Asia. The colonization and exploitation of natural resources that were available to these colonized countries had made the European nations amass great amounts of wealth.

Economic development cannot be noticed in a country of political instability; hence, tight and strict policies have been laid to overcome this situation which comes mainly due to presence of fewer resources. This condition leads to conflicts within societies, as different groups and tribes fight for their share of these resources. Sometimes, the situation may even result in war between the group on one side and the government on the other side, as it happened in Angola. In other countries, even the available resources have been left without utilization or  being mined due to the lack of political stability. Eruptions of wars keep at great distance foreign investors who may have come with the intent of assisting in the mining process. It is, therefore, important to remember that the natural resources, whatever few they may be, may be used effectively and efficiently to realize good economic benefits. It is important to stipulate correct measure to control the repetition of such situations.

Succession issue plays a very important role in that it influences the type of economic practice that the particular community will adopt in the use of the natural resources. The natural resources' holders usually pass the resources to their young generation. This young generation has the tendency of using the same old practices which the older generation employed. For example, the most farmers in developing countries use the old farming methods, and a good number still adhere to such practices despite the fact that it shows very minimal economic benefit to the farmer. The rural sector needs to be consulted by the government agencies on matters of natural resources before these agencies can make economic decisions concerning the resources. This makes the local community feel a sense of participation in the resource management, and, hence, the stipulated policies are likely to be effected well. However, if the government gives little credence to the rural sector, basing on the assumption of their little skills and knowledge, this rural community will feel doubt on the matter of environmental problems and, hence, be unable to tackle them.

In addition to this, the availability of natural resources determines the professional advice which one is accessible to. For example, the land has the land manager as the overall personnel in charge of the land. The manager of the resource has subordinate members about which he cares and which directs. These members, including the manager, require advice on new scientific approaches that may help in effective and efficient use of the natural resource. The developing countries have extension officers who provide required technical assistance to the resource managers and other stakeholders. This allows them to embrace positive change that is beneficial to the community. The natural resources, such as lands, determine probability of economic improvements on them, especially when one considers the succession issue. Rural communities usually inherit these resources from the earlier generation and use it in a similar manner as their parents did, without thinking of technological and innovative ideas that may be incorporated into the farming practice. Those who deviate from the established rules, face the risk of social sanctions. This hampers them from adopting modern farming practices. The national and regional Natural Resource Management bodies in the developing countries usually makedecisions that aim at changing the perceptions and culture of the people about these practices. For example, in the developing countries, the government usually has programs that aim at educating the rural community on the importance of adopting modern farming practices that will improve production.

It should be noted that for co-existence of economic sustenance, there has to be equilibrium between the environment, which is literally the available natural resource, and the economy. The natural environment is important in determining the source of raw materials for the industries.

These natural resources are also important to the local community, as they are the source of natural capital. Decisions on how to improve this natural capital are underway in the developing countries. This is due to the realization that it is through skills and knowledge that maximum economic benefits from the natural resources can be achieved. When the relevant stakeholders, such as the rural community, can be trained so that they acquire necessary skills on such issues as incorporation of technology on natural resource use, then the realized economic benefit will be an advantage not only to them but also to the entire nation.

Furthermore, the models of the economy tend to be influential to the natural resource management. This is because the resource management has policies that focus on the scarcity of the natural capital. The aim is to try to control and fill any loopholes that may result into mismanagement of these crucial resources. Such loopholes comprise issues such as corruption, grabbing of these resources, and so on