ROLE OF NATURAL RESOURCE ON ECONOMIC DEVELOPMENT: PERSPECTIVE ON FINANCIAL MANAGEMENT

Abstract

It's a basic element of economic development that natural resources can provide or sustain, while humans first make great use of them in the form of energy, minerals and farm produce. They are also crucial during the process of development. Proper management of natural resources is a factor that affects both how well an economy can be built and this least conjunct of necessary conditions for its long-term stability. Well-managed finances require not only planning but also mechanisms to ensure that these resources are employed effectively and efficiently.

From the standpoint of financial management, the management of natural resources includes the accurate calculation of the value of resources, long-term benefit analysis as well as management of risk in Azerbaijan. Investment in resources should take account not only of economic growth but also total environmental impact. And it is important to all a fair share of the income from natural resources for society as a whole whilst maximizing their contribution to the economy as far as is feasible.

Therefore, since effective financial management of natural resources is the foundation of sustainable economic development, this process requires developed comprehensive strategies and management practices in Azerbaijan.