Concept in Definition ABC

Resources are those elements that provide some type of benefit to society. On economy, those resources are called factors that combined are capable of generating value in the production of goods and services. These, from a classical economic perspective, are capital, land and labor.

Capital should be understood as those elements that serve for the production of goods and were in turn artificially produced; They have the characteristic of lasting over time and only wear out very slowly. Capital is usually improved by investments that increase your production possibilities in terms of quantity. Thus, some examples of capital goods are machinery or real estate.

On the other hand, the earth encompasses all natural resources that can be used to produce goods or to be consumed directly. Obviously, this factor, unlike capital, is not produced but is taken directly from nature. This element includes mineral deposits, fertile lands, etc. Historically it has been the source of huge disputes that sparked wars and bloodshed. It has also unleashed enormous controversies in relation to the phenomena of agrarian reform, which emphasize the unequal distribution of land.

By last, work is the effort made by human beings to produce. Historically, the predominant mode of work was slavery, but with the development of capitalism the form that was settling as the most important is salaried work. The salary, for its part, is the price of work in the labor market.

Some authors such as Marx highlighted the conflictive relationships between these elements, especially between capital and labor, insofar as far from being harmoniously integrated, both have opposed. According to this position, the existing contradictions would end with the economic system.

The correct weighting that a country must make of the resources it has available is of great importance in order to fully utilize it to position itself optimally in the world. Among the measures taken in this regard, one of the most important is to achieve a correct integration of these resources.