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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
1. Introduction
Natural resource NR-based activities provide food, fuel and a means to earn a living for many people in developing countries. Sustainable management of NR and NR-based
activities can contribute greatly toward meeting the Millennium Development Goals MDGs and post MDG goals by reducing poverty, hunger and improving social welfare while
promoting economic development and sustainability.
Contrary to existing literature on the ‘curse of natural resources’, recent studies have
argued that NR and NR-based activities constitute a possible source for development when appropriate strategies and institutions are in place Collier 2010; Marin, Navas-Aleman and
Perez 2015; Andersen et al. 2015. Considering NR are essentially public goods —non-
rivalrous and non-exclusive goods —the role of government is critical in defining a set of rules,
especially regarding their ownership and access Collier, 2010;Collier and Laroche, 2015. Establishing a mechanisms to manage NR sustainably is a challenge of its own because its any
design should take into account of the constantly changing exogenous such as global market demand, new technology and endogenous industrial dynamics, local environmental
sustainability changes and their dynamic interactions between them. Moreover, as NR based activity is rapidly being integrated into global production networks, they will increasingly
come under the scrutiny of diverse forces with distinctive expectations on the methods of exploitation of NR.
This paper tries to 1 explore the current discussion on natural resources and development, 2 clarify the importance of institutions in developing natural resources, and 3
examine the complex nature of institutional change via acase study of the salmon industry in Chile. The following section reviews recent discussions made on NR and institutions; the third
section will present the case study and the forth section will discuss the case and provide some generic conclusions.
2. Current Views on Natural Resources 2.1 Natural resources and misconceptions
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