Report of the World Bank
Eurasia is one of the richest regions in natural resource. 31 % of world reserves of natural gas, 17% of oil, 23% of iron ore, 14% of gold and 7 % of copper are concentrated on the continent. Continent endowed with such a huge amount of resources, could receive substantial profits from exports of minerals, especially in periods of rising prices for commodities.
Most oil, gas, minerals and agricultural land in the region is in Russia. Azerbaijan, Kazakhstan, Turkmenistan, Ukraine and Uzbekistan are also rich in natural resources. In contrast, Armenia, Belarus, Georgia, Moldova and Tajikistan had the least amount of resources.
Eurasia, the term used to refer to the geopolitics of the former Soviet Union, have made significant progress since the collapse of the Soviet Union. During the 2000s the rise in commodity prices, particularly oil, has brought economies of the former Soviet Union to profit. It brought increased revenue, increased life expectancy, social benefits, and reduction in poverty.
Natural resources certainly played a very important role in the development of the Eurasian states. However, analysts believe that the region should review priorities and develop a different strategy for managing natural resources.
Post-Soviet countries are still facing problems in economic development. Heads of states are concerned that dependence on natural resources has made the economy vulnerable and unstable. This applies to Azerbaijan, Kazakhstan, Russia, Turkmenistan, Ukraine and Uzbekistan.
Authorities increasingly began to discuss the need for economic diversification. However, politicians divided only the export and production. The ability to invest in education, infrastructure and government institutions is not discussed. However, focusing on investments in the national capital they can significantly stabilize the economy - increase employment, productivity, living standards.
If countries diversify the portfolio of domestic assets in the economy, balance between capital received from the sale of natural resources and capital, which was created as a result of various institutions recovers. Moreover, the state will save minerals for future generations.
