According to curriculum, Deepening the Capital and/or investment in technology can be a powerful way to overcome natural resources but mantaining a weak currency doesn’t.
I didnt understand how capital deepening can compensate for lack of natural resources. Also shouldn’t a low currency switch people to more efficient resources thus compensating for lack of natural resources?
Sources of growth can either come from natural resource rich countries like Australia, however if a country has no natural resources it can overcome this impediment by investing in other areas of the economy through capital deepening driving innovation and industrialisation. The danger is that countries with rich natural resources become too dependent on them and fail to develop their industries resulting in a phenomenon known as the Dutch Disease