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ASSESSMENT OF HOW RESOURCE-POOR NATIONS ACHIEVE GLOBAL
INFLUENCE ALTERNATIVE DEVELOPMENT PATHWAYS BEYOND MINERALS
Arizona State University
SUMMER 2024
Nations Thriving Without Natural Resources
Since most of these countries lack large natural resources, they are compelled to rely on
other management strategies for purposes of sustaining the economic growth and enhanced
authority in the global society. That is why Singapore might be cited as one of the best examples
of the nation which has managed to overcome the difficulties which are inherent in the nature of
the natural resources through becoming one of the most significant nodes of the global finance
and business, as well as concentrating the information-communicational infrastructure.
Singapore at a crucial position and well-stabilized government have created an environment
suitable for global investment and technology advancement (Jones, 2020). This is so because
while Singapore is a country that has limited land frontage and do not possess enough of natural
resources. And although the environment of this country is limited to the borders of a city-state,
due to the high indicators of performance, this city squeezed into the ranks of the most successful
ones because of education, infrastructure, and governance (Cheong, 2021). Moreover, the
governmental policy in Singapore is modernized, which has fostered skills and led to the
appearance of a qualified personnel able to respond to changes in the economic environment
(Tan, 2019). For this reason, Singapore is abreast of the fact that strategic planning and policy
can effectively replace natural resources hence promoting development that leads to exerting
economic power that is far way ahead of its size and resource endowment.
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Same as China, Japan is also one of the few countries that have scarce natural resources
but have achieved significant global presence. Due to limited availability of natural resources
Japan has been compelled to adopt the development model that hinges on technology. After
World War II Japan continued the policy of industrialization and affirmed her specialty on
technological grounds from where the nation experienced an economic wonder in the second half
of the twentieth century. Japanese companies like Toyota and Sony provide good examples of
Japan’s systematic approach to accuracy in production and innovation in the technical area
which are critical to brand growth across the globe (Okazaki, 2022). Saito (2019) opines that,
due to the friendly and stable market, Japanese government policies that aimed at nurturing
research, technical skills, high quality education may have played a role in making Japan a
strong economic powerhouse in the world. Such method adopted by Japan proves the theory that
if one puts an emphasize in technical advancement and education, a country should be able to
attain its economic independency in addition to earning a place among the leading influential
countries today even if it lacks essential natural resources. Japan remains in a leadership capacity
now in both technology and finance to illustrate how proactively capital investment in human
capital is extremely advantageous for any resource-deficient country that seeks to upgrade its
status in the global context (Yoshida, 2021).
The events that happened in South Korea provide yet another example to those
governments which having a tight money supply left on their balance but willing to gain a place
in the global world arena. The Miracle on the Han River of South Korea is a good example of a
fast rate of economic transformation that was done through applying technical improvements and
wise strategies on international partnership. South Korea in the 1960s was faced with significant
resource constraints and prudent economic stresses and yet, it looked to heavy industries,
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manufacturing and, eventually, technology and communications. Export-oriented
industrialization policies of the government helped South Korea to achieve the fast growth of the
economy, and create companies like Samsung and Hyundai, which are now famous all over the
world (Kim & Lee, 2020). Besides, education has also been an important investment in South
Korean which has made the country one of the most educated countries in the globe and the
ability to produce a qualified and flexible workforce that is able to meet the dynamic nature of
technologies (Choi, 2021). Culture power status of the country has expanded significantly during
the past few decades, for example through the Korean Wave. This shows that how cultural
exports can boost the visibility of a country in the global level more (Park, 2019). The model that
has been proposed to South Korea shows that no matter how little of the natural resources they
may possess, such nations can still develop key economic and cultural sectors that significantly
enhance their status within global society.
Lack of resources, human capital development, diplomacy without force, and strategic
policy making are some of the examples that reveal that the idea of having alternate roads to
influence is not only logical but is possible. Switzerland can be described as an example of how
wise decision to remain neutral, build a sound financial base and invest into quality educational
system positively affects the world for many years. Switzerland is one of the countries that have
few deposits of various resources, which are native to them. It has earned the reputation of an
important global financial center, global diplomacy, innovation, and technical development
country (Muller, 2020). Switzerland can be said to be stable and known to have good quality of
life and this has making it famous. Thanks to the consistent commitment of the nation to research
and development, the strength of its schools backed with federal funding, there are considerable
advances made across the range of industries such as the pharmaceutical market, biotechnology,
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or the financial industry (Schmidt, 2019). Currently, the Switzerland has been establishing itself
as the location for diplomatic discourse all over the globe; this has rationalized the enhanced soft
power of the country (Meier, 2021). Diplomacy is also engulfed by the presence of the
Switzerland motivated by their international status in the global market. As a benign neighbor,
Switzerland has tried to become a mediator between nations in most international matters. It is a
good example to illustrate the way that the states which have a limited purchase of the natural
resources can negotiate stability and international accreditation without the natural resources. It
does this by ensuring EU presidency does not lean to one side by maintaining sound
governmental structures and by demonstrating high levels of creativity.
Global Conflicts Over Resource Control
When competition over energy, minerals, and water underlying causes of conflict and key
to diplomacy strategies, international competition for resource ownership intensified in recent
years. These wars have always been driven by the justification by competition for these natural
resources. In matters concerning foreign exchange for the procurement of essential imports and
import-competed stability, countries that are endowed with few bankable natural resources are
usually placed at a disadvantaged position. To do this they have to navigate complex geopolitical
landscapes and structures. Japan and South Korea that are industrial economies rely heavily on
energy imports to survive. Like most developed countries, both countries can be described as
being short of resources. Due to this, they are prone to price fluctuation and supply disruption;
therefore, have forged partnerships and invested in areas rich in the resources necessary to
guarantee them energy (Lee & Chang, 2020). Meanwhile what is happening, countries which are
abundant in raw material like, Russia and Saudi Arabia because they hold very important
resources like oil and natural gas can exert a considerable amount of pressure. Energy exports is
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used as a political tool by these states, which gives them considerable power over international
relations and trade with the latter states that are-energy scarce states (Muller, 2021). The
possession of power translates into dominance of material resources, and control of those
resources does not only have economic implications, but impacts on balance of power in the
world as well. Therefore, countries that have little access to supply of resources have no option
than fashioning out ways on how to minimize importation of resources from other countries.
Regional wars have also been fueled due to competition in resource in areas that includes
natural reserves which are comprised as regional reserves. Such nations and such regions are
often forced to go to war because they need access to resources in order to improve their
economy. For instance, in East Africa, the two resources; water and arable land has been a
reason for conflict among the Nile Basin countries especially between Egypt, Ethiopia, and the
Sudan (Johnson & Richards, 2019). Egypt has had an uneasy relation with Ethiopia due to the
latter’s construction of the Grand Ethiopian Renaissance Dam, which will generate power. Egypt
relies on the Nile water for about 99% of its freshwater resource needs. This conflict can be a
perfect illustration of a confrontation over the valuable resource deficit and control over
transboundary resources that may negatively influence diplomatic interactions and destabilize the
region particularly for the nations with scarce access to the adequate supply of the alternative
resource (Elasha, 2020). In South Asia where cooperation over water has been particularly
strained where India and Pakistan have areas of tension, such conflicts of this nature have
emerged. These disagreement influences attainments of agriculture and safety of the territory.
Perhaps one may foresee that control issues could degenerate to regional wars and though this
posed great risks to the Relatively resource poor countries who do not bear much leverage. Some
light to this possibility is shed by these examples.
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Apart from the local conflicts, power over the resources is extending its influence on
central relations and strategic initiatives of the representatives of the states. This is because
resource scarce countries are in search of partners in an effort to secure availability of basic
inputs. A rather frequent type of strategic partnership is cooperation between countries having
demands that are complementary to each other. In such agreements, the former can deliver
materials, whereas the latter – monetary or military support in return. For instance, the Belt and
Road Initiative (BRI) is a strategy that would show how resource-deficit states can increase their
access to infrastructure and investment deals by partnering with a resource-scarce nation. Aidoo
(2021) has pointed out that many African countries signed deals with China as part of the BRI
which helps China to secure the needed raw commodities in exchange for funding in
infrastructure development which includes trains and ports. But this structure cause concern
about dependency on foreign countries and lack of control of the local resources (Graham, 2022).
The above system may be beneficial to the nations that are less endowed with natural resources
because they present an option for development. Thus, several countries are considering the
possibility of committing Regional Integrated Supply Systems with the purpose of relying less
on foreign forces; but, the issue of achieving an optimal need and self-sufficiency is still a key
concern. Regarding the resource-poor countries, the works show the readiness on coming up
with fancy strategies in a view of being afforded a chance to grab the resources as well as
portraying some intricate geopolitical realities in form of these alliances.
Besides, there are new kinds of a war, which can be seen in attempts of cyber and trade
attacks that attempt to block access to some necessary supply or technology since resources are
rare. The nations lacking the means to employ are getting even weaker to the protectionist
processes and hacking attacks on essential supply chains. This type of assaults may very much
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depend to a large extent on influencing the economies of these states. For example, the global
semiconductor shortage in 2021 exposed the vulnerability of countries with limited abilities to
supply high-tech products disruption of their supply chains. South Korea, one of the leading
semiconductor producers with little endowment in natural resources was under much pressure to
source raw materials needed in semiconductor production including rare earth metals as the
demand for semiconductors rose globally (Park & Lim, 2021). This was of course because at the
time, South Korea was one of the premier manufacturers of semiconductors, globally. The USA
and China which are urgently striving towards achieving supremacy in technology have imposed
export caps on these critical components, this has caused tension with countries which largely
depend on semiconductor imports Nations that are resource deficient are actively searching how
to protect against such shock. Some of these nations are providing for local industries and
expanding its suppliers’ pool to reduce its reliance to the larger powers. These conflicts evidence
new frontier of resource control, and due to these conflicts resource poor states are challenged by
fast changing global market circumstances. The geopolitical conflict that they still remain in the
crossover of some levels of technical and supply chain risks remains an issue.
Conflict Minerals Driving Regional Wars
When it comes to what resource riches might mean in terms of fueling poverty, violence
and persistent warfare, rather than development, conflict minerals especially those in Africa,
have emerged as a major factor. Conflict minerals namely coltan, tungsten, tin and gold used in
the production electronics are sourced and traded by armed groups in politically instable
countries such as the DRC (Roessler, 2011). These minerals are mined in areas where the
manufacture of electronics is central. Because these minerals are exploited along with violence
and other forms of exploitation, which lead to the prolongation of conflict and offer local militias
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a greater benefit than the general public (Bashwira et al., 2021), they have been referred to as
conflict minerals. The eastern region of the Democratic Republic of the Congo for instance
notable armed groups have exploited minerals revenue as capital to purchase arms, finance
activities, and exercise control over individuals within the region. This continues to perpetrate a
culture of violence that leads to forced evictions of communities and compromise the stability of
a nation (Stearns, 2020). Opposed to being an opportunity for development as envisaged when
these mineral resources were discovered, they have turned out to be a source of the systemized
violence and conflicts as depicted in this dynamism of how resource richness fuels instability
especially in nations with institutional frailty.
As mentioned earlier, the value of these conflict minerals has further risen due to the
escalating international appetite for electronics and technology which has linked the consumer
market to regional conflict in the resource-rich but the weak governance regions. Seay (2015)
notes that Western and Asian countries in particular depend on mineral which are sourced from
conflict areas. This need has given rise to a demand that fuels exploitation and killings. But even
if there is awareness of such concerns, supply chain control remains a challenge due to the
complex structures of intermediaries through which minerals are concealed before they get into
manufacturers in different parts of the globe (Nest, 2011). Trying to regulate the use of conflict
minerals remain a challenge, for instance through the Dodd Frank Act in America. This is partly
because these efforts are not legally binding, including the operation for cross-border actions and
most of the time meet the resistance from industries and governments that are worried about
loss-making impacts due to implementation of these actions (Cuvelier et al., 2021).
Consequently, the trend of the global electronics market perpetuates these configurations
involuntarily by keeping up the market prices of these essential commodities high. The
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confirmation of consumer demand and regional instability is the rationale for further stringent as
well as enforced international rules so as not to extend the persistence of violence in areas that
are endow with resources but infested with conflict.
This complicates the search for a solution to these problems because MNCs are involved
in trading minerals at the center of conflicts. While some companies have achieved much in
auditing their supply chains to ensure they do not source raw materials from conflict regions,
others remain in the uncontrolled mineral supply chain from places that are not experiencing
violence today. Due to the complexity of undertaking a trail on origin of raw materials through
multiple layers of suppliers for instance, IT firms that use minerals for production have struggled
to guarantee their product do not contain minerals that are used in armed conflict (Gettleman,
2016). In this way, the penetration of businesses into mineral-rich but politically unstable
territories inadvertently contributes to the eruption of local power-struggle dynamics as regards
the control of resources; armed actors in mining areas struggle for dominance, (Blore, 2017).
Worse still, firms have started extending operations into these regions and this has also adopted
the trend. Due to intricacies that characterize relationships between business supply networks
and war theaters, multinational businesses have challenges ethically and functionally. Such
problems prove that good and thorough legislation is not enough to ensure the actual
responsibility and that the third-party control should be in force. According to Eichstaedt (2011)
Multinational corporations tend to put their business needs before those of the rights of the
people. In fact, some of these corporations even rely on legal ambiguities or areas of limited
disclosure in order to skirt constraints, thereby continuing to fuel and perpetuate exploitative and
violent practices not only in territories infested with war. Therefore, even if new stricter rules are
not introduced, more and more MNCs will carry an important responsibility of preserving the
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demand for conflict minerals that inadvertently fosters the militias to capitalize on some unstable
regions.
The efforts of demilitarizing these violent economies are hampered more by the fact that
regional and international efforts to counter the flow of conflict minerals also experience
numerous headaches and sometimes stiff resistance. Although regional organizations, for
instance African Union have developed measures to try and stop the export of minerals that are
smuggled, a challenge that arises is that the capacity to enforce such measures is wanting
(Lemarchand, 2020). Due to criticism from the international community regarding the improper
management of natural resource, some African states have initiated change. These reforms,
however, have not been supported by effective enforceable mechanisms and corruption at the
local and national level (Ndikumana & Boyce, 2018). Moreover, international systems such as
the Kimberley Process, designed to prevent blood diamonds from getting to legal markets have
been challenging to scale for other minerals, leaving a large hole in the regulation of conflict
minerals globally (Smillie, 2010). Especially where central state power is relatively limited and
subnational government structures are dispersed, the challenges of managing violence driven by
resources are shown by problems in addressing conflict minerals at the both the meso and macro-
levels. Due to these challenges, thus the world has recognized the problem but the solutions’
implementation seems to be far from reality. Thus, the stakeholders on the regional and a global
level must combine efforts to design frameworks requiring enforcement.
Arctic Resources- Next Economic Frontier
More and more people are starting to feel that Arctic area is the next economic Eldorado.
This is basically because of the large endowments and reserves of oil and natural gas, and
valuable minerals that it holds. Gautier et al, (2021) opine that the arctic region provides the most
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focus in terms of energy development due to an estimated resource potential of about 13% of
global undiscovered oil and approximately 30% of undiscovered natural gas. However, it is
important to note that there are much more problems connected with extraction of these
resources which are logistical and environmental. This is due to the factor that a huge region of
the Arctic continues to be frozen for many of the year. Emmerson and Lahn (2020) demonstrate
that energy firms and the Arctic nations face significant difficulties when trying to develop
resources in this distant and inhospitable location. This effort requires the application of specific
technologies and significant amounts of money. These challenges are gradually being overlooked
by governments and businesses because of the opportunities which the Arctic region provides in
terms of economic gains. These countries as Russia, Norway and Canada actively developing
offshore drilling and mining in the Arctic zone. Arctic retained its significance to the
international energy market to the extent that resource-endowed countries strive to position
themselves for business on still yet unproven energy resources. Which only goes to show that the
Arctic is experiencing a growing significance in this regard.
Over the last few years, Russia in particular has emerged as a powerful player in the
competitive business of resource search and utilization in the Arctic region. Russia has invested
in Arctic infrastructure in an attempt to stay among the key producers of oil and natural gas in
the world. Such investments include icebreaker fleets and drilling platforms to operate in what is
assume to be contingency (Laruelle, 2020). Moreover, there are laws adopted by the Kremlin
providing for the enhancement of Arctics as the strategic area for the country in terms of its
further economic development and as its priority in the endeavor to strengthen Russia’s positions
in the sphere of energy. In the recent past, Russia has upped efforts to ensure that it as a stronger
foothold in the Arctic region. As established by the United Nations Convention on the Law of
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the Sea, Russia has taken over vast geographical portions of the continental shelf (Conley &
Melino, 2021). Due to such territorial disputes, relations with other Arctic countries have also
become rather strained especially because global warming has led to the opening up of new
opportunities for extracting natural resources that were earlier not possible because of the ice.
Russia’s behavior on the Arctic resources has been quite assertive showing the country’s
predatory intent on controlling these resources. In its efforts to achieve this goal, Russia
frequently puts economic interest before the environment.
Despite the fact that its policy in the region may be affected by the general foreign policy
agenda of the United States, the country has recently displayed more attention to the resources
available in the Arctic. From the information highlight from Huebert (2019), the United States
government has taken steps towards the formation of its institution in the area through the
provision of the Department of Defence’s Arctic strategy that also entails the development of
resource deposits and security. New actions that were undertaken in the recent years have been
directed to improve America’s powers in the Arctic some of which was proposals to develop the
icebreaker fleet and mending relations with Canada and other partners (Holroyd & Retter, 2021).
This happened even though the United States lags behind Russia in terms of the infrastructure
that is already in the Arctic. On equal thin, US government has been trying to put rules by which
oil and gas can be produced in some regions of Alaska’s Arctic National Wildlife Refuge
(ANWR), although meeting a lot of opposition from environmental group and native population
who are afraid of the destructive impact from such move on the region’s ecology. This may well
explain the cautious balancing of economic interests and the need to protect the environment that
defines cooperation of the United States in the Arctic, which in general can be regarded as a
fairly accurate characterization of the administration’s many-faceted approach in the region
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where the issues of national security, environmental conservation and the fate of indigenous
peoples are closely intertwined.
It would be incorrect to deem both countries’ battleships of the Arctic since they actively
contribute into the shelf development, being less aggressive in this aspect than reference Russia
and the USA. This is because they have been pushing to find the middle ground between
commerce and ecology. Thus, the Canadian strategy pays special attention to proper
development of the Arctic area as an economically promising region to retrieve mineral and
hydrocarbon resources, as well as respecting indigenous peoples; all that capturing Canada’s
commitment to preserve northern ecosystems (Lackenbauer, 2019). As Offerdal indicated in his
research work, Norwegian government has placed strict environmental regulation on the oil and
gas companies venturing into the exploration of the Barents Sea. These laws are part of an
attempt to promote the sustainable development in Norwegian Arctic regions. Secondly, both
nations are keen participants in programs aimed at coping with climate change. That is why they
have understood that taking the natural resources of the Arctic requires careful regulation to
avoid aggravation in global warming and its consequences to sensitive area of Arctic. The
commitment of Canada and Norway towards environmental protection is evident from their
respective policies; however, by embarking on the development of the Arctic resources tell much
more than face value about the multiple trade-offs that contain the Arctic in terms of economic
development and ecological conservation.
With increase in the number of activities and competition for resources in the Arctic there
is also increased efforts by the international community in the management of the resources in
the Arctic through legal and diplomatic instruments. The continental shelf boundary may be
pushed forward contingent upon the topographical structure beneath the UN Law of the Sea
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which established the legal justification to demarcate claims over the Arctic region (Byers,
2020). Since, countries are demanding more space, debate over the continental shelves and
probable ‘resource laden’ areas can be said to trigger war. They have, therefore, shifted up the
probability of probabilities of moving up conflict. As will be explained below, it can be argued
that the aspiration for cooperation and sustainable development has been brought to some degree
through the Arctic Council, which has already mentioned is an international cooperative body of
the eight Arctic states, as well as incorporated Indigenous organizations. Kapyla and Mikkola
(2019) conclude that the Council possesses almost no agency in the enforcement of contractual
obligations, regardless of the nature of these obligations, regarding resource extraction.
Nevertheless, the Council has its shortcomings despite the fact that it has been quite important in
establishing speech and partnership. With no overall International Law framework governing the
exploitation of Arctic resources there are issues not only in terms of the Arctic states’
cooperation of interests, but also the indigenous people and the environment.
Environmental concerns are highly sensitive in the Arctic region due to the prevalence of
easily degradable ecosystems caused primarily by resource extraction. Polar bears, walrus, and
the artic fox species found in this region; are under a serious threat due to climate change and
industrial endeavor (Post et al., 2019). Oil spills are particularly a calamitous threat to the
biogeographical area of the Arctic region; due to difficult terrain and severe climatic conditions,
the effort and cost of countering the oil spills is an enormous challenge (Carmack et al., 2021).
The thawing of permafrost presents challenges since its negative impact to infrastructure and
may contribute to natural disasters. Civilized people have very little appreciation of the risks
which hunters and fishers who are members of indigenous Third World communities face
because of unbridled development and destruction in the Arctic region essential to their means of
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livelihood and cultural practice. These types of groups have raised concerns over the social and
environmental impacts of resource extraction and have particularly sought higher level of
protection of their ancestral territories. Hence there is a difficulty of resource exploitation due to
the tremendous potential of the Arctic for this kind of activity while the environmental
repercussions that come with it raise ethical and realistic questions on the viability of such
steams in the vulnerable Arctic environment.
A Look at the Economic Impacts of Deep-Sea Mining
Deep-sea mining is a potential but hotly debated frontier in the extraction of natural
resources which is as a frontier activity as they have economic prospects and potential
environmental risks at the same time. In their study conducted in 2020, Hein and colleagues
pointed out that the seabed contains valuable resources that can be exploited to advance the
sustainable technology. This is because the global consumption of special metals that are used in
the electronics industry and renewable energy markets is increasing. If it is cobalt, nickel,
manganese ores, or rare earth elements, they are rich in polymetallic nodules and hydrothermal
vents, resources located several hundreds of meters deep in the ocean (Boschen, Simboura, &
Stratigaki, 2019). These minerals are required in batteries applied in electric cars, wind power
systems among other applications. These sources contain a much greater level of yet unrealized
potential because the ideas are being discussed as a possibility for expanding the mineral supply
from sources other than land, the majority of which are situated in politically volatile areas.
Since the economic potential derived from deep-sea mining is so huge, Seabed mineral deposits
are gradually perceived as an ideal alternative to meet the demands of a new era green economy.
This is because the access to the land base resources is reducing as explained by the high GLE 2
index.
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Technologies for deep sea mine which is still missing is very rapidly and efficiently
evolving. This is being done with the intention of the possibilities and a particular condition that
can be found at the bottom of the sea. Because mining at depths up to 4,000 meters cannot be
done with normal mining equipment, underwater marine autonomous vehicles (AUVs) and
remotely operated vehicles (ROVs) have been created. Likewise, there are corporate players such
as DeepGreen and Lockheed Martin that used their venture capital in robotic procurement and
other technologies that can train with the pressure, temperature, and fluctuating vision that are
encountered at these subterranean extents (Gjerde et al., 2016). Because of such technologies, it
is not impossible to imagine that large scale deep sea mining exists in the fairly near future. This
would state that there is potential for many corporate interests to capture large amounts of
beneficial rents if only they will lead development of this new industry. But because of the high
costs and specifications which define operation in the deep sea, only the world’s most
technologically sophisticated firms and states will be able to succeed. This ultimately results in
what is believed to be a unique view of the sector competition environment map.
While otherwise being an extremely lucrative business proposition, deep-sea mining has
attracted a considerable level of concern with regards to the impact which it has on the
ecosystem that it operates in. It is notable that researchers and conservationists see the potential
risks and could harm marine life environments. It is one of the most unmapped locations and, at
the same time, the most biologically diverse place on our planet with numerous endemic
organisms that have adapted to the conditions which are unprecedented in other locations (Van
Dover et al., 2018). Deep ocean is one of the habitats that support the greatest level of
diversification. The impacts related to disturbance like the mining of polymetallic nodules,
associated disturbance of hydrothermal vents may lead to complete destruction of habitats, loss
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of operational biodiversity, alterations in geochemical cycles (Levin et al., 2020). If such mining
activities lead to production of plumes, these plumes could spread fine sediments over vast
distances and thus smother benthic animals as well as inhibit feeding systems that support deep
sea and pelagic life forms. No one knows all the ecological consequences that come with deep
sea mining and many people believe that deep sea mining might be destructive to the deep sea
ecosystem if people have no adequate understanding of the deep sea ecosystem. There is no
question that more tender methods are needed in order to preserve such animadvert sensitive
environments; still, how to reach a highly desirable middle ground between this degree of
circumspection on one side and the equally laudable attempt to receive the maximum possible
return on the other side is a huge issue.
As global and national ever struggling to regulate this new sector the laws that regulate
deep-sea mining are multiple and with each passing day becoming more so. As stated by Lodge
(2017), the ISA who was established under the UNCLOS is directly responsible for handling the
opportunities of the mineral rich area which comprises the seabed as well as the seafloor beyond
the jurisdiction of sovereign states. Alongside, the awarding of exploration permits to businesses
and nations interested in deep-sea mining, the ISA is in the process of developing Industry
Standards to ensure mining is conducted in a sustainable manner (Jaeckel et al., 2019). On the
other hand, there are many who opine that the existing ISA regulation does not adequately
protect deep-sea environment as it is claimed. Critics in the ecological non-governmental
organizations opine that its structure does not consider the environmental aspect but rather the
industrial aspect. Additionally, China, Japan and South Korea, for instance, are countries that
have advanced mining technology, and these have started showing their intention in regards to
deep sea resources. This brings question as to what is right justice and right entitlement to profit
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that can be accrued from these resources. Concerning the efficiency of the deeper mining and its
sustainability, the applicability of using international solutions in obtaining the combination of
an optimal number of the economic and environmental factors will play the decisive role. It can
be always presumed that regulations will on go on changing.
Apart from the utilization of the metal that constitutes the major component of sea-bed-
ores, deep sea mining has profound economic and geopolitical consequences. Such implications
may require an effect on international business or require changes that can affect the whole
context of intergovernmental relationship and international policies towards environment. They
are rather well positioned to handle this sector that will put them into a commanding position
over the conduits of minerals in the global market (Levin & Le Bris, 2019). This structure
indicates that some of the countries that have relatively better technical skills in this area, such as
USA, Japan and China occupy a relatively better position in this field. The availability of the
mineral resources finds in the area of the high seas may change the global economy in a certain
way. This is because, the governments and businesses will end up accessing minerals that are
vital for the production of new technologies. For instance, China has supplied most of the
demand for rare earth elements forcing other countries to seek new sources hence they turn to
deep sea mining (Haugan, 2021). This rivalry may promote potential conflicts between states,
which compete in becoming leaders in the management of such resources, at the same time
encouraging the emergence of innovative complexes and cooperation. Consequently, non-
interference, which will be an important component of International Environmental Law, will
require mutual cooperation and understanding of legislation as deep sea mining becomes
progressively feasible. Equally important and deserving further rigorous research are social and
ethical implications which may ensue from deep-sea mining more so in light of the fact that this
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business is starting to move into areas beyond national jurisdictions. If deep-sea resources have
the potential of financially enriching the economy, there are many questions that have not yet
been asked about who will benefit from these natural resources, and who will bear the
responsibility of the damage on the deep sea resources. Mengerink et al., (2019) indicate that
indigenous and coastal people for example may suffer indirect impacts in case marine systems
are altered by deep-see mining and discarded as Gearry (2018) notes these mining impacts affect
social, economic and political systems of indigenous and coastal people. Further, where private
businesses and governments with the technological skills secure rights to deep-sea resources,
there is likely to be an increased inequality outcome. And this is because the income generated
from such activities may not get to the people most affected by these mining undertakings. The
principle of common heritage of mankind means to the United States Convention on Law of the
Sea that the benefits of the Area’s resources must be shared among all the state parties. It is still
challenging to apply this principle (Kim, 2020). Issues of ethical concern with regard to fairness,
accessibility, and distribution of the resource show increasing policy formulation to ensure that
resources are fairly and inclusively shared.
Strategic Port Construction for a Maritime Nation
Under these conditions, the strategic ports are seen as an element of the new geometry of
relations at the international level and of the new spatial organization of the world economy. This
is so especially to weak states that are wishing to obtain marine commerce for their growth;
which will also enable them to compete in the international politics. The use of the ports,
therefore, enables countries with the ability to carry out international trades, acquire crucial
resources all in one shot while at the same time signaling naval strength through the ports as the
doorways to world markets. To this effect, Rodrigue et al. (2017) posited that indeed, strategic
20
ports allow governments who formally lack resourcefulness the best chance to turn geographical
weaknesses into strengths and vice versa hence enabling those that lack resourcefulness turn
these geographical weaknesses into strengths and end up create what they call Strategic Ports for
regional and global exchange of commodities in their regions. Cooperation may also be
enhanced through ensuring the security of certain seaways, thereby utilizing a strategic control,
dominating maritime choke points, unhinging international commercial passages and economic
interactions with adjacent nations. The expansion of ports is not only beneficial in the
improvement of the transportation of products, but it also improves the rankings of the country in
the global market. The problems of port strategic development in relation to its role in the
balance of international trade are emerging to the foreground, particularly as the pace of the
world’s marine connectivity is steadily intensifying. This is because there is a shift to
performance and reliability of supply chains as announced in this article.
Enhancing an embedded connectedness of worldwide markets through development of
efficient and well-situated ports may enhance the influence capacity of a given nation
significantly. Since they enable the flow of goods through areas, ports located at main channels
of transport or at the heart of trading zones may place a country at the center of supply chain
interfaces. For instance, the ports that are located at strategic shipping lanes. For instance, the
construction of Suez Canal in Egypt has made the country one foreign policy hub of commerce
of the world today. This canal is natural seawater and joins the Mediterranean Sea to the Red
Sea, thus being a bypass for most routes between Europe and Asia (Henderson & Venables,
2020). Like those mentioned above, ports in Singapore and Hong Kong are now virtually
inseparable from the Southeast Asian economy and the global economic system. Not only these
ports used for anchoring the regional trade, however, they are also bear a huge importance of
21
transshipment terminals, which have the responsibility of handling a number of commodities that
are in transit between different parts of the global market. That is where the positioning of a port
as the commercial hub may encourage foreign investor to invest in the country, creates
employment opportunities hence economic development is a pillar of national development. This
is particularly so especially if the country is a less developed country or is devoid of the requite
resources.
Apart from the economic returns, optimum ports can help in offering geopolitical aspects
especially if the area of location of these ports plays a major geopolitical significance. A lot of a
nation’s strategic power can be added if it controls several strategic Strait, that are actually
narrow channels through which pass large quantity of intercontinental trade. A case in point is
the Malacca canal, which is actually a narrow stretch of water that joins the Pacific and the
Indian realms. The need for global products that is transported through this waterway is nearly a
quarter of the total sales recorded in the world market (Schott, 2019). The nations who have such
access to or control of these chokepoints hold leverage over globalization’s lifeblood for any
reason, including commerce and warfare. The creation of ports at these strategic locations gives
the comparatively poorly funded governments a unique opportunity to assert dominance in the
marine trade and security of the area. It means that the fact that many ports have military and
naval facilities inside their territorial waters may even enhance the capability of the nation to
express its power over the region thus improving the geopolitical leverage of the nation.
Besides increasing the nations’ navy and security, these vital ports subsequent expansion
would help the escalation of the marine force. Capabilities and readiness of naval forces which
countries require for control of sea lines of communications for the purpose of resource supply,
protection of assets or defense Naval forces are in this case essential assets for this naval force.
22
To a higher level mayer for support in the growth of naval power an advanced port. The rationale
behind this is because it allows construction complex military facilities, deployment of ships and
support of naval property. For instance, enormous sunk costs in new South China Sea ports
especially in the Spratly Islands gives China sovereignty over the disputed area and infuse its
neighbors with much fear (Kaplan 2019). By deploying military equipment on these structures
especially through construction of ports and placing military equipment on man-made features,
China has aimed at boosting its military influence in a region that holds central position to
commerce and ocean security. The actions have provided China with a great starting point in this
area. The navigation processes with naval infrastructure are tightly connected with the
significantly greater defense and the potential to influence the security conditions of a particular
region. This is quite useful especially to the government which seeks to have enhanced political
leverage but which has nearly no capital.
It has also changed the characteristic of strategic port development that had improved
operation and communication and national capability of managing International business. The
above change has been made possible by incorporation of the current technological advancement
in the construction of ports. Reflecting the growing multifaceted nature of contemporary ports
which has quickly turned into automation and digitalization as activities that are useful in
improving the flow rate of goods, increasing throughput and decreasing expenditures. This is
especially cases with places that are one of the largest such as Rotterdam which has integrated
high tech solutions like smart cranes, block chain logistics and artificial intelligence in managing
the traffic of ships (Niemann & Andresen, 2018). Such enhancements not only enhance the port
operations but also enable a nation to connect it to the digital global village without much effort.
The above technical advancement must be adopted by the RPCs since they need to break the
23
cyclical domination by accessing the international markets. This will help these nations build
ports which are suitable for handling such literally tones of goods. It is because it enhances the
ability to manage supply chain in real-time manner, improves cargo throughput and augments the
controllability of marine trade logistics networks against disruptions that the digitization of port
operations extends the strategic importance of these actions.
Strategic ports are not only a chance for the states with the scarcity of resources to
improve their cooperation with world and regional counterparts but also a tool to develop and
strengthen this cooperation. Since the benefits are often realized after related investments in ports
most times outflows involve transactions with the international hat, extra organizations and other
governments. These partnerships are expecting business and expecting money and possibility
knowledge resources. For instance, big-ticket items that China has agreed to invest in such as the
development of the port of Gwadar in Pakistan under the framework of the China-Pakistan
Economic Corrido (CPEC), port development may emerge as a central feature of the China-
Pakistan bilateral relations (Hussain 2021). These infrastructure projects can by resource scarce
governments for example used to instill diplomacy and assure long term business relations. This
is done by linking development of the ports with the outside investments expected in Nigeria.
These are the alliances that boost the geopolitical status of the country and as result makes nation
a preferred area for inter alia the commercial activity and investments.
Establishing strategic ports may also assist with the other broader goals of regional and global
development together with such economic military, and diplomatic benefits associated with the
construction of those constructions. Consequently it is imperative that the ports are efficient to
improve supply chain performance in an effort to meet the global challenge. This is because
international trade and sea traffic are increasing. Today when there is growing tendencies
24
towards globalization and liberalization of trade where free movement of goods is critical
towards the growth of, and stability of the economy this is of paramount importance. While it
may be difficult for the resource poor country to be part of regional and global commodity
circulation system there is opportunity to upgrade their economy status given they have the
capacity to develop big ports capable of handling very large amounts of goods. In addition, the
ports assist in the reorganization of commodities across different regions, and assist in the
integration of the overall global economy (Rodrigue et al., 2017). This is because ports are
transshipment centers. In this regard they recognized the possibility of the strategic development
of ports as a way to unlock value and unlock limited resource countries into the global system as
an inevitable and crucial player in the global supply chain.
Passage for the Knowledge Economy from Resource Dominance
With the global standard shifting to sustainable diversified growth model developing
countries which are scarce in resources are now embracing value based businesses. From
conventional extractive economy to knowledge-based economy, information technology,
biotechnology, finance and education, this is a significant deviation from the previous strategies
of exploitative economy. Knowledge based economies are thus defined by the importance given
to creation, transfer and application of knowledge as the main tool to build competitiveness,
innovation and growth. Gassmann et al. (2018) stated that countries without ample resources can
choose to align with this shift, as it offers them the opportunity to leapfrog traditional processes
of industrialization, closely linked with long term successive economic stability. The integrating
characteristic of the knowledge economy is high levels of investment in research and
development (R & D), innovation, human capital and technical factors. These are all issues that
25
bear the capacity to push the economic growth forward without necessarily the exploitation of
natural resources.
Education, on enhancing human resource, were the foundations on which an effective
knowledge-based economy rested. Developing countries have today the chance to make
investment in educational systems that will stress on entrepreneurship, entrepreneurial digital
literacy and scientific abilities in STEM field. Brynjolfsson and McAfee (2017) note that relying
on a highly trained workforce, governments may create domestic sectors that rely on rather than
physical capital stock, other resources. This enables countries to allure international investors,
boost on innovation and development of the domestic Industries by their own accord. For
example, Singapore has made itself into a global hub of technology and invention but for this
country, no natural resources are available whatsoever. This has been made possible through the
input given to education and induction of knowledge based economy. Singapore has a skilled
population and transformed itself into a powerhouse of several sectors, with focus sectors like
bio-tech, IT and banking sectors (Chia & Lee, 2019). This has been done through targeted capital
expenditure to university education, research entities, and public private partnership (Chia &
Lee, 2019). It has been able to augur economic development and create market competitiveness
for the nation credited to the information creation and utilization capacity of the country.
In addition to deploying education in the promotion of knowledge based economy,
technological infrastructure is a critical factor in this process. The economically less developed
countries can improve their economic potential by building reliable capabilities to support such
technologies as data storage, mobile networks, and high-speed Internet communication.
According to Jones (2021), it becomes possible to create different types of businesses, to have an
opportunity to develop the existing business, and to create new solutions which can handle
26
different problems, both local, and global. While Rwanda possesses scarce natural resources,
technology has been received as an economic enabler particularly in the agricultural, health and
education pillars. The government of the nation has been committed to providing the relevant
support especially in areas of constructing information communication technology infrastructure
in the country in support of programs like Smart Rwanda. This program caters for the use of
technology in a number of sectors with an aim of enhancing its efficiency and efficiency in
service delivery (Bertelsmann Stiftung, 2019). The Rwandan government through embracing
information communication technologies has come a long way in the development of a post-
resources based economy.
The fourth area of operation in the knowledge economy is to foster an atmosphere that
will facilitate entrepreneurial initiatives and creativity. Less developed nations can help build an
environment that supports formation of new entrepreneurial firms, new firms or new businesses
that are being powered by technology. This means that if nations are willing to back such
ventures through supplying capital, legal protection and contacts then innovation, employment
and dependency on raw materials could be reduced. In this particular regard, Israel becomes
rather illustrative. Israel has turnovers primarily in the high-tech sectors even though the nation
lacks the richness of natural products. This is true today especially in technology consist of
cybersecurity, Artificial Intelligence and medical technology. Government support in satisfying
its requirement of incentives, cooperation between academia, the business world, and military,
research and development industry of Israel and its powerful culture of innovation. It is for this
reason that the nation has had an era of success in establishing the knowledge-based economy as
indicated by Klein and Jaffe (2018) when identifying the importance of creating an environment
that supports innovation to make it easy to transform ideas into commodities.
27
The shift to the knowledge economy requires organization, mobilization and exchange of
information at the international levels. Actually, this means that partners from industrialized
economies therefore research institutes and MNEs may form a favorable solution for resource
poor countries since they provide them with experience, technological and financial resource.
Such opportunities might assist to enhance a country’s capacity to operate on the global level as
well as contribute to the stimulation of inventions’ development and the enlargement of market
access. For instance, India has positioned it to be among world leaders in software production
and information technology hours through cooperation that is evident between India and MNEs
operating in the field of information technology. According to Arora et al., (2018), through the
new employment in the knowledge economy, India has emerged as one of the global largest
exporter as well as service providers in information technology. This was accomplished through
barter of knowledge and development of IT parks together with business incubation centers. As
part of these relations holds a function of offering the so called ‘resource poor’ countries the
necessary resources and links they need in order to implement a wide ranging mandate of export
diversification from the commodities.
Notwithstanding the fact that potentials related to knowledge economies are opening up,
to accomplish this there are various barriers that have to be surmounted. The creation of a
sustainable knowledge economy requires raising amounts of physical, human, and financial
capital as well as intangible capital for developing nations which lacks these resources. For more
details, it is noteworthy that, the transformation of a growth trajectory of a competitive
Knowledge economy may involve complex amendments in business, IP & innovation Laws and
regulations. Following the lines of Julius (1997) success of knowledge economies is an affection
that cannot be guaranteed and is a function of all factors synchronizing to the right. These factors
28
include; government policies in the country, participation of individuals’ private business sector,
and attitude or culture adopted by the people towards innovation and venture. Conversely,
acquiring a knowledge based economy implies a long term approach toward the construction of
coherent and sustainable growth strategy; and less vulnerability to fluctuations in the world’s
prices of goods. This is more so where the country has shortages of natural resources, or where it
has plenty of the wrong sort.
International Education Partnerships- Constructing World-Wide Influence
International education relationships are now an important part of soft power given
today’s increasingly interconnected world. These partnerships assist the decentralized states that
may lacking sufficient revenue collection to attain a worldwide foothold and develop sustainable
diplomatic and economic partnerships and connections. In this way, the nations can employ the
educational systems as tools of invention, cultural sharing and intelligence cooperation which in
consequence leads to improved status of nations in the worldwide perspective. Since education is
a powerful and universal tool for social change and mobility, it plays a huge role in promoting
international cooperation, eliminating cultural barriers to building sustainable relationships that
are not limited to economic ones (Altbach & Knight, 2018). Even as the internationalization of
education promises peer cooperation and membership in such may provide resource-starved
nations with access to key information, innovation technologies, as well as global networks for
sustainable development beyond natural commodities.
Another advantage which international education partners receive is the promotion of
information sharing. Thus, it is easier for countries possessing scarce funds to obtain professional
knowledge, as well as the latest research data, which may be easily adapted to the conditions of
the countries under consideration. In fact, these countries are in a position to have a similar
29
fronted by the formation of partnerships to developing strong scientific, technical and Education
system where these partnerships with the leading universities, research institutes and think tanks
of the worldwide nations have the abilities to provoke scientific and the quality of domestic
education in their countries by inviting scientists and lectures from other countries, exchange
with students, etc. The cooperation in higher education learning foreign has been a key element
in enabling transforming the south Korean economy into a technological oriented. Korea south
has a complex innovation system that has nurtured its progress in sectors such as electronics,
robot and biotechnology among others (Kim & Lee, 2019). It has been developed in cooperation
with the universities and research institutes all over the world (Kim & Lee, 2019). It means that
they may get some benefits of education exchanges to improve local research and development
skills so as to help the emergence of new resources for the diversification of the economic base
in the longer run.
The improvement of mutual understanding between countries is another of the ways that
the international education links which we are discussing help to make the cultural diplomacy a
whole lot easier to achieve. It means that such collaborations create cross-cultural interactions
between people and create opportunities for the cooperation in fields, which are not related to
technology, for instance, arts, political sciences, etc. Using academic relationships together with
cultural diplomacy can help to fine tune a nation’s perception in the eyes of other nations and to
cultivate long-term productive cooperation based on similar goals and ideologies. For instance,
the United States of America has enhancing its diplomacy foreign nations of the world by using
the broad network of the educational exchange programs like the Fulbright program. Through
doing so, the United States apart from founding its principles has succeeded in establishing
positive sentiments and soft power which has empowered it to expand its authority globally
30
(Kuh, 2018). It is also very probable for the states with less amounts of money to pursue the
similar tactics in order to foster the cultural and diplomatic relations. Some of the methods of
internationalization of higher education at Kazakh contingency include; importing students in
other countries, hosting scholars from other countries, and undertaking collaborative research
that promotes togetherness and fellow feeling.
According to Cummings and Pankhurst (2020), international corporate agreements do not
only increase the subjects’ mobility, but also contribute to the development of human capital.
When students attend the other nations’ higher education institutions, the nations will able to
boast of skilled labor force that is able to propel necessary innovation and actual economic
improvements and growth through the offering of scholarships to foreign students. From those
various international education programs students are able to acquire new knowledge, learn new
cultures and make contacts, which are important in the ever increasing global economy. For
example, India, China, and Brazil have gained enormously from students who study in colleges
in the western world where they gain better education in science technology and business. Those
students who move back to the origin countries of their nationality become input to the force
multiplier of technocrats and thus contribute heavily to the technical and economic development
of their countries. For this reason, education yields a return on investment which is two how it
bolsters local competence, and secondly how it bolsters foreign relations through alumni
linkages (Cummings & Pankhurst, 2020).
According to Jones (2022), the lack of resources may help developing nations upgrade
the education sector, strengthen its home research base, and foster economic development by
ensuring international students willing to study in the country. The monies thus obtained from
charging tuition fees, accommodation and other living costs, and the circulation within the
31
economy of the host country, does count for something by international students. An example is
Malaysia which after investing heavily in enhancing the quality of the Country’s higher learning
institutions is now leasing accommodation to thousands of foreign students from many
Countries. He was able to emphasize that these students also contribute to the diversification of
the local economy apart from being part of raising the quality of the institutions of learning and
therefore making the institutions more competitive in the global market. In order to transform
their education systems into key contributing machinery to the growth of their economies and
their global image, the resource deficit nations may need to alter the delivery systems of
education by employing the act of exchange.
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