PREPARED BY MR EUGINE OWINO

GEOGRAPHY NOTES

EDEXCEL INTERNATIONAL GCSE (9-1)

YEAR 10 AND 11

THEMATIC AREA: ECONOMIC ACTIVITY AND ENERGY.

BROOKHURST INTERNATIONAL SCHOOL

Objectives of the topic

By the end of the chapter you should be able to know:

1. The activities that are typical of each of the four economic sectors, and the reasons why
employment structures change with development.
2. The factors affecting the location of economic activity and how these factors change over time.
3. The reasons for the change in the numbers of workers employed in each of the economic sectors.
4. The impacts of shifts in the economic sector of specific countries at different stages of
development.
5. The causes and characteristics of informal employment
6. Different theories about the relationship between population and resources.
7. The reasons for the rise in the demand for energy.
8. The relative merits of different sources of energy
9. How energy can be used in a sustainable way.

This chapter is about economic activities which provide people with work. The activities also help
countries to develop and become more prosperous. Economic activities have been changing and have
been demanding the use of more and more energy.

4.1 ECONOMIC SECTOR AND EMPLOYMENT

Economic activities refer to any type of undertaking which has a great value essential for human survival.

Examples of economic activities include:

 Farming
 Manufacturing
 Provision of services

Students to identify more

Importance of economic activities

 It creates jobs
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 It generates income
 It produces something for sale or consumption

Besides creating jobs and producing something for human use, economic activities also involve capital
investment and profit making. Most economic activities are driven by the need to work and make a living.

There are four groups of economic activities, which are grouped according to what they produce and the
types of jobs they offer. Each group is known as an economic sector. They include:

1. Primary sector

Involves working with natural resources/ raw materials and converting them to finished products.

Examples include farming, forestry, fishing, mining and quarrying.

2. Secondary sector

The portion of an economy that includes light and heavy industrial manufacturers of finished goods and
products from raw materials. Most of the activities in this sector require substantial machinery to operate.
Involves processing things like iron ore minerals, assembling of cars and construction of houses.

3. Tertiary sector

Provides services to the people. E.g

 Retailing
 Banking
 Teaching
 Treating (doctors)
 Entertainment e.g. in restaurants and cinemas
 Hair dressing
 Fitness trainers
 Public and private transport

4. Quaternary sector

They are concerned with information and communications (ICT) and research and development (R&D).
Universities are an important part of this sector.

Quiz

To which economic sector does each of the following belong:

A car ferry
A designer of computer software
A wind farm
A firm which recycles plastic

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The stability of the sectors influences the levels of economic development of a country. The economies of
LEDCs purely rely on the primary sector while that of the MEDCs rely on the tertiary sector.

Attachments

Measuring the relative strength of economic sectors

The strength of an economic sector can be measured using two different ways. The same measures are
used for all countries so that the countries are reliably compared. The measures include:

1. Employment. The sectors are compared to show the percentage of the total employees they
engage.
2. Contribution of the sector to the gross domestic product (GDP) and the gross national income
(GNI).

The two measures are well represented using pier charts.

Changes in economic sectors over time

The importance of the different economic sectors change over time. For instance, as a country develops,
the number of people employed in the primary sector decreases as the sector shifts to tertiary.

As the economy develops further the number of employees in the primary and secondary sectors
continues to fall. After the tertiary sector becomes the largest employer, a quaternary sector begins to
emerge.

The graph below represents the Clark-Fisher model

Phases of industrialization

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There are three main phases of industrialization which include:

i. Pre-industrial phase
During this phase, the primary sector drives the economy and employment. Agriculture is the
main economic activity.
ii. Industrial phase
Secondary and tertiary sectors increase in productivity. Leads to decline of the primary
sector.
iii. Post-industrial phase
Currently the most important sector in the modern economics. Other sectors have continued
to decline gradually. Quaternary sector begins to emerge.

According to the graph, the industrial period was the most critical phase. During this phase, the secondary
sector(manufacturing) became more important than the primary sector in terms of both employment and
contribution to the GDP.

The sectorial shifts are part of the development process. The quaternary sector appears when leading
countries and major cities feel the need to always being ahead through research and development.

Review the development pathway:

As the economic sectors change, the balance of economic sectors between countries also changes
depending on the level of economic development. Developed countries fall into the category of high
income while the developing falls under the low income countries.

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Activity

Into which category do emerging countries like Brazil, China, India and Russia fall?

4.2 FACTORS AFFECTING THE LOCATION OF ECONOMIC ACTIVITIES

These are the factors which give the reasons for the location of the activities. The factors include:

Space/ land
Availability of raw materials
Availability of labor/ workers
Access to markets/ Accessibility. (Good transport, availability of customers). This is a very
important locational factor since it determines the access to the market, labor and raw materials.
this is the reason why many economic activities are located within the CBD (it is centrally
located hence easily accessible from all directions of the town)

Economic activities will be most profitable if the locational factors are best met. The economic activities
will therefore be sited in areas where the factors are best provided.

The following are examples of economic activities with the required location factors:

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1. Commercial farming. Land is the basic raw material. Water is essential for the growth of the
crops and rearing of animals. The area must be easily accessible for easy transport of the
agricultural produce (roads).
2. Heavy industries. Examples include steel, shipbuilding and chemical industries. They require
good transport for distribution of raw materials and transport of finished goods.
3. Light industries. This are typical industries which are less dependent on raw materials but
consume large amounts of energy. E.g. Food processing.
4. Retailing. The services need to be readily available to the consumers. Very few services are
located where there are few consumers.
5. Research and development. It is an important quaternary sector activity. Relies on a highly skilled
workforce for the best research to be undertaken. Usually in universities.

Question: distinguish between light and heavy industries.

Give a reason why the CBD contains most of the economic activities within a town. Due to its central
location, many roads converge here hence making it easily accessible. Consumers can therefore come
from far, not only from within the town to consume the services.

In the recent times, there has been decentralization of economic activities whereby they have been
shifting from the CBD to the urban fringe. The following are the indicators of the decentralization
process.

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Creation of super stores and retail parks outside the CBD

Creation of industrial estates in the suburban and inner city ring.

Creation of business parks outside the town

Creation of science parks. Located close to universities or research centers with the aim of encouraging
high-tech industries and quaternary activities.

Question: Give examples of high-tech industries.

Aerospace
Biotechnology
Robotics
Telecommunications

Not all tertiary activities are confined to urban areas. Tourism is an example of an exception.

Activity

Fill the table below with some economic activities with their respective locational factors;

Economic activity Locational factors

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4.3 CHANGES IN SECTOR EMPLOYMENT

Q. how does the relative importance of the economic sectors change with economic development?

The Clark-Fisher model is based on the idea that as a country develops, the relative importance of the
economic sectors changes in terms of:

Their contribution to the GDP and GNI of the country

The percentage of people they employ in the country

Location factors also change with time resulting to a change in the location of economic activities. Any
changes will affect employment hence leading to a change in the employment sector. E.g the relocation of
a factory will lead to people losing their jobs.

Reasons for changes in the employment sector

1. Exhaustion of raw materials

Makes manufacturers to change their location
2. New technology.
Technological advances like introduction of mechanization in agriculture and manufacturing has
reduced the demand for labor. People are therefore laid off to pave way for the use of machines.
The advances in transport have also reduced the friction of distance in transport as people can
travel easily and very fast from one place to another all over the world. Technological advances
have also led to the growth of high-tech industries and created new products and services.

Revisit the advantages and disadvantages of technological advances.

Research: research on the examples of technologies which have replaced human labor in
different sectors.

3. Globalization
This is the process by which countries in the world are being gradually drawn together into a
single global economy through a growth of networks and links. The main causes of globalization
have been development in transport and communication. (Has made countries all over the
world to easily depend on one another). E.g. Kenya is able to export its fresh fruits, flowers and
vegetables to European markets. Cheap South Korean cars are transported to almost all countries
of the world.

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4. Government policies
The intervention of the government in efforts to develop the economy. For instance, in the U.K.
the policies have been geared towards supporting agriculture and encouraging services to
compensate for the loss of jobs in the manufacturing industries. In china, the major concern has
been expanding the secondary sector.

5. Demographic and social changes.

This is about people. Population grows over time hence raising the demand of goods and services
such as food.

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As people earn more money from the growing economic sectors, they have enough to spend on the basic
commodities and even remain with some. The remaining income is called disposable income which is
mainly spent on non-essential goods and luxuries.

Question: what is significant about disposable income?

4.4 SECTOR SHIFTS IN THREE COUNTRIES

Sector shifts are changes in the relative importance of the economic sectors that take place as countries
develop.

Ethiopia-a developing country in the pre-industrial phase

China-an emerging country in the industrial phase

The UK-a developed country now in the post-industrial phase

The pie charts shows comparison of Ethiopia, China and UK by GDP and employment index.

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CASE STUDIES:

1. SECTOR SHIFT IN ETHIOPIA

A developing country in the pre-industrial phase.

Ethiopia is located in the sub Saharan region of Africa.

Ranked 173 out of 186 countries in the world in terms of economic development hence it is one of the
poorest and least developed countries in the world.

The economy is focused mainly on the primary sector which accounts for 75% of all employment in the
country and slightly less than 50% of the GDP. Agriculture is mainly subsistence farming.

Commercial Coffee farming has been the main type of crop for long which has replaced subsistence
farming hence leading to food shortages. Land that was available for food production is now being taken
over by commercial coffee plantations. This has made the country to suffer many years of famine. It has
also pushed people to move to Addis Ababa, the capital city and other urban centers in search of better
living.

Another change in the primary sector is the growth of gold mining which has created employment and
earned the country more foreign exchange.

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Until now, the secondary sector (manufacturing) has played a minimal role in the growth of the economy.
The government has played a major role in improving the infrastructure especially improving the road
networks which has ensured accessibility of the rural areas. The availability of cheap labor has also
attracted the investment by Transnational Corporations (TNCs) who have set up factories in the country.

75% of Ethiopians live in the rural areas but the % is beginning to fall due to the increasing rural urban
migration.

Ethiopian cities are few and far apart making it impossible to establish tertiary industries.

The UN Economic Commission for Africa and the African Union has their headquarters in Addis Ababa
attracting more economic activities.

The main sector shifts in Ethiopia have mainly targeting improving the quality of life of the Ethiopians.

Question: suggest five possible reasons why Ethiopia has been such a poor and underdeveloped
country.

2. SECTOR SHIFT IN CHINA

A rapidly emerging country

Categorized to be in the industrial phase

China is a giant country in terms of its size and population. Over the last 10 years, the country has
experienced a rapidly growing economy. It is now the largest economy in the world; however, it is still a
lower middle-income country.

The main sectorial shift in the country was the move from the primary to the secondary sector which has
driven the economic development and prosperity of the country. The shift was a move by the government
to try to make the country a global economy.

Currently, the secondary sector accounts for half of the country’s GDP but only a quarter of the labor
force.

The move to secondary sector has greatly benefited the locals in terms of securing employment
opportunities which has guaranteed the quality life.

The heavy industries in the secondary sector have however contributed to massive environmental
pollution. There is also a problem of urban traffic congestion as a result of the ever increasing of people
in the Chinese cities.

The streets are overcrowded.

However, The Chinese society has remained cut off from the rest of the world since the access to the
internet is carefully controlled by the government.

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Review questions

a. Give reasons why china might have a food supply problem

b. What sort of goods is produced by the Chinese manufacturers? Do you have any goods in your
home that were made in china? If so name them.
c. Why do you think Chinese people are not being allowed full access to the internet?

3. SECTOR SHIFT IN THE UK

A post-industrial country

It was the world’s first industrial nation and it led the industrial revolution. Fifty years ago, manufacturing
was the main contributor of the economy of the country by contributing around 40% of the country’s
wealth and employed one third of the country’s population.

Today, as a result of the global shift in manufacturing, the sector produces only around 25% of the
national wealth and employs less than 20% of the entire population. As a result of the global shift, the
country has experienced de-industrialization. Many goods manufactures in the country are now made in
China, India and other MICs and LICs.

Today the UK economy is service based. The tertiary sector currently employs 80% of the workers in the
country and increases the national economic wealth by 75%. These figures are inclusive of the upcsoming
quaternary industry which is taking over at a first rate.

However, it is quite interesting to know that agriculture in the UK produces almost 60% of the country’s
food supply. The sector is however highly mechanized to the shortage of labor as more manpower has
been engaged in the tertiary and quaternary sectors. The farm products however fetch a low GDP to the
country due to their low prices compared to the manufactured goods and services.

The consequence of the sectorial shift from manufacturing to tertiary/ service has had its own impacts
which include the following:

a. Social impacts. Includes De-industrialization (loss of industries) and migration. As the industries
disappeared in the process of de-industrialization, many people become unemployed leading to
high rates of migration as people had to leave their homes to go and look for work elsewhere.

However the impact was not severe since coincidentally, the decline in manufacturing coincided with the
growth of the tertiary sector. Those losing jobs in the manufacturing sector found new ones readily in the
newly formed tertiary sector.

b. Environmental impacts. Large urban areas were laid waste as factories closed and were
demolished. Industrial towns and cities in the north had to reinvent and reimage themselves,
which has been quite difficult and expensive.

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In these case studies, the relevance importance of the sectors has been changing as we moved from
Ethiopia, a developing country to the UK which is a developed economy.

It is clear that some of the UKs, manufacturing has moved to china causing sector shifts in both countries

Will some of Chinas manufacturing eventually move to one of today’s LICs like Ethiopia? It is possible,
especially when the workers in the industries continue to expect higher wages. It will make labor in china
very expensive. Manufacturers tend to move where labor in cheaper. This would be bad news for china
but possibly good news for countries like Ethiopia.

Review questions

a. Identify three possible reasons for de-industrialization

b. Discuss whether or not you think that the de-industrialization of the UK has all been bad news.

4.5 INFORMAL EMPLOYMENT

Apart from the four sectors we have looked at, there is a fifth sector which has been coming up in some
other parts of the world and which has not been recognized in the official figures produced by the
concerned governments.

This is called the informal sector. It is also called the black economy because it is unofficial and
unregulated in most parts where it is practiced.

However, the sector employs millions of people across the world especially in the developing countries.
In some countries, over 70% of the workforce works in the informal sector.

Map

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Rural urban migration is a common practice in the developing countries leading to Underemployment.
Underemployment occurs when there is surplus labor i.e. many people in the towns relying on the few
jobs that are available. To avoid poverty, the unemployed urban population is forced to find alternative
ways of making a living. The informal sector has become the best option for them.

Examples of informal employment jobs include:

 Blacksmiths
 Pottery
 Basket weaving
 Shoe shining
 Rubbish collection
 Vending ice cream
 Hawkers
 Paratransit. This is an interesting formal activity which has come up in the developing countries
as a result of inadequate official transport. They take the form of minibuses, rickshaws, scootesr
and pedicabs (tricyles and taxis). They do well since they provide cheap transport to the urban
people. However they have added up to the problem of congestion in the urban areas. (look at
figure 4.18 on page 111).

Q. Distinguish between unemployment and underemployment.

CASE STUDY OF INFORMAL SECTOR: DHAKA, BANGLADESH

This is a megacity with a population of 16 million and one of the fastest growing cities in the world. The
city attracts economic migrants from all over Bangladesh.

25% of the city dwellers live in slums and therefore more than half of the city dwellers rely on the
informal sector for survival. It is so far the most densely populated megacity in the world.

The informal sector in the city provides cheap goods and services and provides the poor with a means of
survival.

However the informal sector has not completely broken the cycle of poverty in the city due to the low
earnings obtained from it.

Costs associated with the informal sector in Dhaka

 Low capital returns

 No employment benefits e.g. healthcare or housing allowance
 High exposure to work related risks
 Uncertain legal status
 Discrimination
 Child labor. Approximately half a million children are exposed to child labor in Dhaka. Most
work from dawn to dusk earning very little in a day to support their families. They work as

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beggars, scavenging, domestic workers, fare collectors for paratransits etc. as a result the city has
been known as the rickshaw capital of the world.

4.6 POPULATION AND RESOURCES

Most economic activities involve the consumption of resources and energy. The rate of consumption
of the resources and energy strongly depends on:

 Population growth
 Development

The global population n is currently past 7 billion mark and is continuing to rise rapidly. The global
economic growth is about 3% per year. The rate of consumption of the resources is also increasing since
most of them are non-renewable. What will happen to the people and their economic activities in the
future? The world might be ending to catastrophic disaster.

Relationship between population growth, development and resources

There are three views which have been used to express the relationship between population growth,
development and resources.

a. The Malthus theory (1798)

The first view to be put across, though a very pessimistic one. According to him, population growth
proceeded at a faster rate than the increase in food supply. So there would come a time when there was no
longer food to supply to feed the population. At this point population growth would stop through a
decrease in birth rate or an increase in death rate as a result of famine, diseases and war.

b. The Boserup theory (1965)

He argued that population increase stimulates an increase in food production. The population growth
triggers advances in technology which increases food production.

c. The club of Rome model (1972)

Argues that the limits to global population would be reached within the next 100 years if population and
development continue at the rates of growth that was seen in the 1970s. however they suggested that it
would still be possible to reduce the trends by means of growth-regulating processes.

If this happened, a sustainable triangular balance between population, development and resources might
be reached. Modern technology would also be used to reach the equilibrium.

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Draw illustration on page 113

There are three possible balance situations possible when comparing population and resources.

i. Overpopulation
Occurs when the population numbers exceed the resources. This is an unsustainable situation.
ii. Under population. Resources exceed population. Rare situation.
iii. Optimum population. Population and resources are in a balance. More sustainable.

Question

Identify possible or symptoms of each of the three population situations. Name some countries which in
which each of the situations exist.

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Achieving the right sort of balance depends on:

a. Controlling population growth

b. Reducing consumption of resources by using them efficiently
c. Using technology to discover and exploit new resources
d. Making sure that development is less based on natural resources.

These measures are what were suggested by Malthus, Boserup and the Club of Rome as ways of reducing
population pressure on the use of resources.

4.7 RISING ENERGY DEMAND

Energy is one of the most important resources in the world. It is needed in almost all spheres of life.
Fortunately, most of is provided by the natural environment.

Energy resources can be classified into primary and secondary. Primary energy is the fuels which
provide energy without undergoing any conversion processes e.g. coal, natural gas and fuel wood.

On the other hand, secondary energy includes all forms of energy which are made from the processing of
primary fuels. Examples include electricity, petrol and coke.

Currently, electricity is the leading global source of energy.

Energy resources can also be classified into renewable and non-renewable.

Renewable energy sources include those which can be used again and again since they have the ability
to regenerate themselves. Examples include solar, wind and tidal energy. They are sustainable and and
likely to play an important role even in the future.

Non-renewable energy sources include those which cannot be replaced once they are used up. They
include all the fossil fuels (coal, oil and gas). Over relying on them can lead to global shortage of energy
once their reserves are exhausted. Their use has been a global concern due to the high level of
environmental pollution they cause.

Q. Distinguish between:

 Primary and secondary energy

 Renewable and non-renewable energy

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The global demand for energy is always rising due to population increase and global economic
development. The amount of energy used by a country can be used as a measure of its level of economic
development. This is because as a country develops, energy-consuming activities such as manufacturing,
provision of services and transport increase in scale and importance.

The rising demand is met by the country using its energy resources or importing it from other countries.

Europe and America use approximately 70% of the world energy even though only 20% of the world
population lives there. They were the first areas to experience large scale economic development. They
have however been forced to import energy especially oil as their reserves have been diminishing with
years.

The graph below shows the global energy demand and consumption

Global energy production

Three quarters of the world’s energy production comes from 3 main sources:

 Oil
 Natural gas
 Coal

All are non-renewable. The major producers, who also happen to be the major consumers include:

 USA
 Canada
 Western Europe
 Russia
 Parts of Middle East
 New Zealand

There are therefore two energy worlds depending on energy production and consumption. The energy
worlds include:

High energy world. Countries with high energy production and consumption. Mainly includes the
MEDCs.

Low energy world. Countries with low energy production and consumption. Mainly includes the
LEDCs.

Q. between the high and low energy world, which one is better? Give reasons for your answers.

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Energy security

Energy security exists when a country is able to meet all its energy needs reliably, preferably from within
its own borders. The number of such countries in the world is very small.

Draw fig 4.25 on pg 117

Most countries globally face an energy gap between energy demand and energy supply where the
countries are forced to import energy to meet the ever-rising demand.

In the UK for instance, the energy gap is being widened by the facing out of fossil fuels as a way of
reducing carbon emissions.

The world is almost at an energy crisis (when the demand for energy is higher than the supply). There are
plenty reserves of coal and natural gas but they are non-renewable and their wide spread use is being
questioned globally over their sustainability to the environment. There is a critical need to reduce carbon
emissions due to their high contribution in global warming.

The current global energy problem is the growing mismatch between the distribution of energy,
consumption and production. The mismatch is creating national gaps and other countries with energy
surpluses. The surpluses give such countries huge geopolitical and economic power. They even have the
ability to hold other countries at ransom.

Draw map on pg 118

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4.8 RENEWABLE VERSUS NON-RENEWABLE ENERGY

Non- renewable sources

Students to review

4.9 SUSTAINABLE ENERGY

There is a need to use the available energy in sustainable ways to prevent them from being exhausted.
Non-renewable energy sources are finite and must be conserved at all costs. We need to be sure that the
energy sources available today are able to fully meet tomorrow’s energy demand.

Stick illustration on figure 4.27 pg 122

We all have individual responsibility to use energy more efficiently

Examples of ways in which we can conserve energy at individual level

a. Walk or cycle to and from school

b. Insulation of our houses to prevent heat loss during cold seasons. Can be locally done using
curtains. Reduces the need for air conditioners in winter and heating in winter.

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c. Packing empty spaces in freezers and refrigerators with ice trays or polythene.
d. Do not run washing machines or dishwashers unless they are full
e. Putting laptops and mobile phones in hibernate mode at night when not in use. (These are
power saving modes)

Think of other ways

CASE STUDIES ON THE MANAGEMENT AND CONSERVATION OF ENERGY AND ITS

RESOURCES

Three countries at different points along the development pathway have been selected for the case study.

ENERGY RESOURCE MANAGEMENT IN QATAR

Qatar is one of the countries in the world enjoying energy security. It was one of the poorest states in the
Middle East 100 years ago but the discovery of oil and natural gas changed everything and is now one of
the richest countries in the world.

It is currently the largest exporter of Liquefied Natural Gas (LNG) in the world. The UK is one of the
largest importers of the LNG. Exportation of the LNG, crude oil and refined petroleum products accounts
for half of the GDP of the country.

Because of these resources, Qatar has the highest per capita income in the world.

Map of Qatar

Qatar is a huge consumer of energy inform of electricity.

Reason:

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a. Due to its geographic location in a desert, there is high need of energy for air conditioning in the
houses throughout the year.
b. Presence of many heavy industries e.g. oil refineries, steel, desalination plants and petrochemical
industries.

Between 2000 and 2012, Qatar’s consumption of electricity grew from approximately 8.0 billion to 32.7
billion kilowatt-hours.

The Emir and his council of Ministers have the responsibility of managing the country’s energy
resources.

How Qatar manages its energy resources:

Investment in solar energy. Due to its geographic location in a desert, it has an abundance of solar
energy.

Recently the country has announced to plans to build an 1800MW solar power station. By 2020 solar
energy is expected to account for 15% of the total electric power generation. The country has shown no
interest in turning to nuclear energy.

Question: Why does a small country such as Qatar have such a large demand for energy?

ENERGY RESOURCE MANAGEMENT IN INDIA

India is one of the largest emerging countries of the world and has one of the fastest growing economies.
It has 18% of the world’s population but uses only 6% of the world’s primary energy.

Its annual energy consumption has doubled since 2000. Energy is vital to India’s development ambitions.

Development ambitions of India

i. To maintain an expanding economy

ii. To improve transport
iii. To provide the infrastructure needed by the population e.g. water and water disposal
iv. To supply electricity to a majority of the people especially in rural areas

All these ambitions require high energy input.

Three quarters of Indian energy is met by fossil fuels with coal being the most used. Coal accounts for
over half of the country’s primary energy. The country has enough coal deposits but has increasingly been
importing.

The demand for energy has been increasing as households have been moving from the use of solid
biomass for cooking to the use of coal.

70% of India’s electricity comes from burning of fossil fuels.

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How India manages its energy resources:

i. Investment in the harnessing of hydroelectric power from the Himalayas area. The HEP
accounts for 20% of the country’s electricity
ii. Investment in nuclear power. Accounts for 5%
iii. Plan to invest in wind power in the coastal areas

The country has a large potential for solar power though it has remained untapped as shown on the map
below.

However the future of management of energy in India seems unlikely since the country has shown no
effort to reduce on its use of fossil fuels. The country has mainly focused on economic development and
appears not to be concerned on carbon emissions and global warming.

Question

Think of one problem associated with using solar power in India.

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ENERGY RESOURCE MANAGEMENT IN NEPAL

It neighbors India to the north near the Himalayas and is one of the poorest countries in the world.
The present demand of energy is relatively small but is growing as the country tries to develop.
Fuel wood was the traditional energy source for cooking and heating which led to widespread
deforestation and massive soil erosion.
Crop and animal waste (biomass) continues to be used as a fuel for cooking.
The ambition of the Nepalese government is to supply electricity to the 28 million people in the
country.
The country has no significant deposit of coal, oil or natural gas of its own. Exporting the fossil
fuels has become very difficult and expensive since Nepal is a mountainous and landlocked
country with no sea port.
The creation of commercial hydro-plants which has been achieved through the support of the
World Bank has created the supply of reliable electricity to the people. The hydro-plants are
being created across the rural areas. The plants are built and run by the local communities. They
are sustainable and bring the much needed electricity for use by the industries, domestic,
commerce and agriculture.
Over 1000 micro-hydro plants have been built and which are already meeting the energy needs of
many rural communities.

How Nepal manages its energy resources:

i. Creation of more micro-hydro schemes

ii. Introduction of trial wind schemes in Kathmandu valley. However there is a limitation with
this wind project, being as mountainous country, the winds sometimes blow with great speeds
which can destroy the wind mills.
iii. Introduction of harnessing of solar power using solar panels. Limitation: limited number of
sunshine hours in this mountainous country.

Another problem with the wind and solar power is the high cost of the equipment and technology
required to maintain it.

Question: Why is Nepal so dependent on renewable sources of energy?

Conclusions from the case studies

1. Despite their differences in levels of development, all the three countries have energy needs.
In Nepal, the need is to bring electricity to rural remote areas. India needs all the energy it can
get to fuel the rapidly growing economy while Qatar has to export more energy resources to
maintain its prosperity. More energy is also needed to keep life comfortable in Qatar.
2. There are similarities and differences with regards to renewable energy sources. All the three
countries have potential sources of renewable energy. However, Nepal is the only one which
derived the energy from hydro-power. Qatar is making a slow move towards solar power.
India is already using hydro-power but has no plans to become less dependent on fossil fuels.

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END OF THE TOPIC

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