Minerals And Modern Industrial Economies

ECONOMIC STRUCTURE OF MODERN INDUSTRIAL ECONOMIES The role of minerals in modern industrial economies may be examined in several ways. There are relationships with the various sectors of the economy: the primary, secondary, and tertiary industrial groupings and activities. Mineral supply and demand activities can be measured in terms of national accounts criteria. The economic policy objectives of the modem industrial economy are based to a considerable extent on the needs of the nation for economic supplies of miner- al materials. There is an important role for minerals relative to national security in peace and in wartime and many national policies are directed toward ensuring adequate sup- plies of minerals. Environmental control in the modem industrial economy is increasingly concerned with matters related directly to the production and use of minerals and these matters, in turn, bear importantly on conservation in mineral supply and demand. Mineral polices include specific provision for research and development activities concerned with the production and the use of minerals. In all, national policy objectives will be shaped in considerable part by the circum- stances of mineral supply and demand: the relative degree of availability from domestic and foreign sources, the state of the mineral-processing industries, and the degree of development of the mineral-using industries, and per capita and total changes in requirements. Goods made from mineral raw materials are the basis of all advanced societies and although this is taken for granted, every country is continually dealing with problems of mineral supply and demand. Considering that in the first 50 years of this century the consumption of mineral materials in a highly Industrialized country such as the United States increased by six times while the population was doubling, it becomes apparent that if a country is to enjoy rapid economic growth it must have access to huge and ever-growing supplies of mineral materials at lowest possible cost. Adequate supplies of mineral materials and wise usage of mineral resources have always been among the most important determents of a nation's survival The importance of access to adequate mineral supplies is increasing every year and this has significant international, as well as national, implications because of the unique locational characteristics of mineral resources. It is generally acknowledged that no particular type of natural resource is essential to a high level of national income or to economic progress. A country's endowment of natural resources need not exercise a determining influence on the course of its national income over time, provided it is able to trade. What is required for economic progress is the availability of a substantial quanti-