Thesis Preview
Many countries
have problems with how they value their natural resources. The undervaluation of natural resources often
leads to large scale, irreversible environmental damage. For example, forests
are frequently clear cut to make room for crops or livestock. The landowner is
compensated quickly via the “stumpage” price for the timber harvested from his
land. He is then able to enjoy quick returns from crops or livestock. In
developing countries, the undervaluation of natural resources has resulted in
catastrophic environmental degradation.
The same
undervaluation of forestlands can also be applied to other natural resources as
well. For example, a growing number of inhabitants in the Niger Delta are
getting involved in the illegal oil refinery business in Nigeria. Oil is stolen
from facilities of corporations working in the region on an industrial scale,
processed into fuel in illegal refineries, and sold across West Africa.[1]
Oil leaking from pipes after illegal extraction finds its way into the rivers,
lakes, and ponds of the Niger Delta.
In both instances
immediate returns are valued over long term sustainable solutions. This issue
however is extremely pressing because of the high population growth rates of
developing countries. As human population increases immediate returns from natural
resources take precedent over long term sustainable solutions.
Nigeria is my area of focus because over the past five decades oil companies operating there have a very poor operational track record. After decades of abuse and exploitation the locals have decided to take the oil industry into their own hands. The poor example set by oil companies for years has essentially become the norm for oil operations in Nigeria. Had these companies operated in a more responsible way there would be significantly less environmental damage and physical and financial harm.
Nigeria is my area of focus because over the past five decades oil companies operating there have a very poor operational track record. After decades of abuse and exploitation the locals have decided to take the oil industry into their own hands. The poor example set by oil companies for years has essentially become the norm for oil operations in Nigeria. Had these companies operated in a more responsible way there would be significantly less environmental damage and physical and financial harm.
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