Tuesday, April 8, 2014

Epilogue to the article about economic development of Islamic countries (4)

As for the article, such resources must be extracted, processed, exploited or acquired by trade as required.
Physical resources however are man-made.
The availability of these resources depends on the past accumulation of physical investment in building construction, purchase of equipment and maintenance of the stock of these assets.
It is here that culture and religion, Islam in particular, may play a role.
Physical productive assets are what economists call "capital".
This represents the physical wealth of society.
Without it, income cannot be generated.
Creating it is a long process of planning, risk taking, vision and enterprise.
Individual investments are not taken in isolation but may require a number of inter-dependent factors.
The financial return on such investments may not be realized for years into the future.

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