Explanation:

Statement 1: Open economy can be helpful to development in that it allows the country to borrow best practices and capital from across the globe. The nation can also increase its income through exports.

Statement 2: The resource rich Africa and Latin America have some of the poorest countries in the world, whereas many prosperous countries have scarcely any natural wealth. The economic wealth, or well-being, of a country thus does not necessarily depend on the mere possession of resources; it is how these resources are used in generating a flow of production and how, as a consequence, income and wealth are generated from that process. It is called as demographic dividend, but its fruition depends on how skilled, healthy and well- managed is the labour force. India is a well-known case.