ABSTRACT
The formation of the 'classic' development model presupposes a unique set of initial and boundary conditions in terms of resources and their distribution which obtained during the development of the small number of countries. Resources can be classified into four categories: natural resources, scientific and technical knowledge, human resources and capital resources. However, all material things that humans want to obtain and use are produced by means of human labour, which exploits, processes or manufactures natural resources. The term, 'renewable resources' means that the resources can be replenished by means of a relatively swift natural cycle. Exclusivity means that the benefit or damage resulting from an action is directly assumed by the people who have the right to choose that action. Non-exclusivity is the attenuation of property rights and there is a sense in which it will lead to a degree of inefficiency. Once certain resources reach a given level of scarcity, there will inevitably be limits to capacity.
