Read the following passage and answer the given questions.
The true endurance of a sovereign state is determined not merely by its raw industrial output, but by the stability, health, and intellectual capital of its citizenry. True financial progress relies on a balance of physical infrastructure, natural assets, effective governance, and, above all, sustained investment in human capability. Territories that allocate resources toward educational institutions and public health systems construct the bedrock for lasting economic success.
A persistent reality in global commerce is that raw commodity wealth alone cannot ensure durable development. Nations rich in mineral or fuel deposits frequently experience temporary spikes in revenue, yet such expansion remains precarious without competent public administration and a well-trained, healthy workforce. Comprehensive schooling fosters innovation, flexibility, and economic agility. Concurrently, quality healthcare maintains workforce productivity, minimizing absenteeism and decreasing the economic toll of manageable illnesses.
To address these vulnerabilities, several resource-dependent territories have sought to diversify their economic bases by channeling revenues into academic institutions, vocational academies, medical facilities, and sanitation infrastructure. Zambia, for instance, has recently taken measures to funnel copper mining revenues into public education and healthcare systems to decrease its economic vulnerability to fluctuating metal prices. By expanding human potential, the country aims to boost overall productivity and draw capital into non-extractive industries. Despite ongoing hurdles, these initiatives demonstrate how short-term windfalls can be converted into long-term national resilience.
Nevertheless, the international financial landscape remains subject to sudden turbulence. Global supply disruptions, volatile market pricing, and diplomatic friction can disrupt developmental agendas, even in regions committed to social progress. A severe risk arises when external economic downturns compel authorities to curtail vital public expenditures, jeopardizing decades of achievement in social sectors. A nation's capacity to absorb such downturns hinges on fiscal foresight and a diversified industrial footprint.
Ultimately, national stability is built gradually through consistent policy execution, open governance, and strategic vision that balances immediate revenue demands with long-term prosperity goals. By cultivating a skilled, healthy, and innovative population, societies build the resilience required to navigate global volatility.
In summary, sustainable economic development thrives when grounded in human welfare. Allocating funds toward social infrastructure is both an ethical commitment and a strategic investment. Regardless of resource endowments, jurisdictions that prioritize human development strengthen their global standing and safeguard future prosperity.
Based on the passage, what is a primary drawback of depending exclusively on natural resource extraction for economic growth?
Correct Answer :
It yields temporary economic surges while leaving the workforce and public institutions unequipped for long-term stability.
Solution :
The correct answer is It yields temporary economic surges while leaving the workforce and public institutions unequipped for long-term stability.
Step-by-Step Explanation:
1. Analyze the Question: The question asks for the primary drawback of relying exclusively on natural resource extraction for economic growth according to the passage.
2. Examine the Passage: The second paragraph explicitly states: "A persistent reality in global commerce is that raw commodity wealth alone cannot ensure durable development. Nations rich in mineral or fuel deposits frequently experience temporary spikes in revenue, yet such expansion remains precarious without competent public administration and a well-trained, healthy workforce."
3. Evaluate the Options:
- The passage directly ties resource dependence to temporary revenue spikes (surges) that fail to build durable development when public administration and workforce training are neglected.
- The other choices regarding domestic inflation, eliminating fiscal transparency, overinvesting in academic research, or abandoning agriculture are not mentioned or supported by the passage text.
4. Conclusion: Therefore, the correct choice is that exclusive reliance on natural resource extraction yields temporary economic surges while leaving the workforce and public institutions unequipped for long-term stability.
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