Theme 3 Economic Development

3.1 Development & Globalization

Development

Development is about growth and progress, and about using resources and technology
to improve the quality of life for people. Countries can be culturally, demographically,
socially, politically, or economically developed.

• Economic Development measures a country’s wealth.

• Social Development measures the access the people have to wealth, education,
food, health, and political freedom.

• GDP (Gross Domestic Production) - the total value of production (of goods and
services) in a country in one year
• GNI (Gross National Income) - the total value of production (of goods and
services) by nationals of the country (the GDP for a country + the income
received from other countries - payments to other countries)
• GDP and GDP per capita are the traditional measures of a country’s wealth.
• HDI enables us to rank the countries of the world from 0~1 according to their
level of development, including: Health (life expectancy), Education (literacy
rate, mean years of schooling, expected years of schooling), and Standard of
living (GDI per capita (PPP))

Poverty

Factors influencing development

Physical:
• Climate (Agriculture, Drought/crop loss/starvation/food shortage/unrest, Disease/
Malaria/yellow fever/ high death rate)
• Natural hazards (Floods, Droughts, Tsunamis: income diverted to pay for
repair/development)
• Natural resources (Minerals/ Fossil fuels/Natural beauty, forced to focus
elsewhere if low resources)
• Landlocked countries (15 countries in Africa are landlocked, Trade is restricted,
Access to/of technology)

Factors influencing development

Regional Inequality in Brazil

Brazil has very different levels of development.

The core area, in the south of the country:

• contains the cities of São Paulo, Rio de Janeiro and Belo Horizonte
• Temperate, mild climate
• has fertile soils for farming
• has good access to ports for trading
• has benefited from business investment in the area

The periphery is in the north and northeast of the country, areas which:

• are a long way from the core

• suffer from a wet and tropical climate in the north, and semi-arid in the northeast
• include dense rainforest
• are difficult access to ports and trading links

A theory of regional disparities

The Gini coefficient

• The Gini coefficient measures inequality on a scale from 0 to 1.

• Higher values indicate higher inequality.
• Depending on the country and year, the data relates to income measured after
taxes and benefits, or to consumption, per capita.

Stages of development

• The concept of Least-developed countries (LDCs) was first identified in 1968 by

the United Nations.
• Reasons: they have major economic, institutional, and human resource problems.
These are often made worse by geographical handicaps.
• 49 countries. 34 are in Africa, 14 in Asia and the Pacific, and 1 in Latin America
(Haiti).

• Newly industrialized countries (NICs) are nations that have undergone rapid and
successful industrialization since the 1960s.
• The reasons: a good initial level of infrastructure & a skilled but relatively low-
cost workforce & cultural traditions that revere education and achievement & the
government that welcomed foreign direct investment from TNCs & the ready
availability of bank loans, often extended at government behest and at attractive
interest rates

Industry

• Primary sector – exploits raw materials from land, water, and air.
• Secondary sector - manufactures primary materials into finished products.
Secondary products are classed either as consumer goods (produced for sale to
the public) or capital goods (produced for sale to other industries).
• Tertiary sector - provides services to businesses and to people.
• Quaternary Sector - uses high technology to provide information and expertise.
Research and development is an important part of this sector.
• The product chain can be used to illustrate the four sectors of employment. The
product chain is the full sequence of activities needed to turn raw materials into a
finished product.

Employment Structure – the proportion of people employed in each sector

Employment structure in LEDCs:

• High primary (usually farming)

• Little mechanization on farms
• In early stages of economic/demographic transition
• Informal service sector in cities is quite strong

Employment structure in NICs:

• Strong manufacturing sector

• Many TNCs move to NICs to take advantage of labour and land (cheap)

Employment structure in MEDCs:

• Farming mechanized (lower primary employment)

• Automation of manufacturing or transfer of its sector to NICs.
• Very strong tertiary sector with large numbers employed in health, education, and
tourism.
• Growth of jobs in the knowledge economy based on processing knowledge and
information.

Globalization

Globalization - Increase in connections between places around the world.

What are the global flows that connect us?

• Trade and transactions

• Capital and investment movements
• Migration and movement of people
• The dissemination of knowledge

Reasons for globalization

• Improvements in transportation - larger cargo ships mean that the cost of

transporting goods between countries has decreased. Economies of scale mean
the cost per item can be reduced when operating on a larger scale. Transport
improvements also mean that goods and people can travel more quickly.
• Freedom of trade - organizations like the World Trade Organization (WTO)
promote free trade between countries, which helps to remove barriers between
countries.
• Improvements in communications - the internet and mobile technology have
allowed greater communication between people in different countries.
• Labour availability and skills - countries such as India have lower labour costs
(about a third of that of the UK) and high skill levels. Labour-intensive industries
can take advantage of cheaper labour costs and reduced legal restrictions in
LEDCs.
Globalization has resulted in:

• increased international trade

• generally greater prosperity
• companies operating in more than one country (TNCs)
• greater dependence on the "global economy”
• more free movement of capital, goods, and services
• recognition of companies such as McDonalds and Starbucks in LEDCs.
• Although globalization is probably helping to create more wealth in developing
countries - it is not helping to close the gap between the world's poorest countries
and the world's richest.

TNC (Transnational corporations)

TNC - Companies that have factories and offices in many different countries and are
based in different economic sectors.

Organization of TNCs

• Headquarters
• Research and Development
• Branch factories

Reasons:
• escape trade tariffs
• find the lowest cost for productions
• reach foreign markets
• exploit resources from foreign countries

Factors attracting TNCs to a country:

• cheap raw materials

• cheap labour supply
• good transport
• access to markets where the goods are sold
• friendly government policies

Positive impacts:

• Inward investment by TNCs helps countries by providing new jobs and skills for
local people.
• TNCs bring wealth and foreign currency to local economies when they buy local
resources, products, and services. The extra money created by this investment can
be spent on education, health, and infrastructure.
• The sharing of ideas, experiences, and lifestyles of people and cultures. People
can experience foods and other products not previously available in their
countries.
• Globalization increases awareness of events in faraway parts of the world.
• Globalization may help to make people more aware of global issues such as
deforestation and global warming and alert them to the need for sustainable
development.

Negative impacts:

• Globalization operates mostly in the interests of the richest countries, which

continue to dominate world trade at the expense of developing countries. The role
of LEDCs in the world market is mostly to provide the North and West with
cheap labour and raw materials.
• There are no guarantees that the wealth from inward investment will benefit the
local community. Often, profits are sent back to the MEDC where the TNC is
based. Transnational companies, with their massive economies of scale, may
drive local companies out of business. If it becomes cheaper to operate in another
country, the TNC might close down the factory and make local people redundant.
• An absence of strictly enforced international laws means that TNCs may operate
in LEDCs in a way that would not be allowed in an MEDC. They may pollute the
environment, run risks with safety, or impose poor working conditions and low
wages on local workers.
• Globalization is viewed by many as a threat to the world's cultural diversity. It is
feared it might drown out local economies, traditions, and languages and simplify

the whole world to the capitalists 资本主义 of the North and West.
• Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in
the UK and other MEDCs, especially in textiles.

TNC Case Study – Walmart

Facts:

• operates discount department and warehouse stores

• total $572 billion revenue and $13.6 billion profit
• employs 2 million people in 11,000 different outlets in 28 countries
• operates under different names
• worlds biggest retailer
• 130 million shop each week

Global links:

• it was set up in Arkansas, with rapid growth in the USA and was first abroad in
Mexico
• expanded to China, Canada, Hong Kong district, Japan, and Britain in the 90’s
• it has 500 ASDA stores in the UK, employing 175,000 people
• African countries for cheap production
• China is its largest producer, shipping $18 billion to the USA in 2011
• finds its cheapest labour in Bangladesh
Positive effects:

• lots of new jobs e.g three new stores opened in Argentina, creating 450 new jobs
• invests in sustainable development e.g 20 stores have solar panels in Puerto Rico
• Walmart donates millions to improve health in the countries it is based in. e.g. in
2008 in Argentina, they donated $80,000 to local projects and helped feed 12000
people
• local companies supply to Walmart, creating $10 bn a year in Canada

Negative effects:

• causes smaller shops to go out of business

• not all wages are the same e.g $6/hr in the USA but only $1/hr in China
• some suppler companies work long hours e.g 80 hours a week in Bangladesh –
20 over
• the stores take up a lot of land e.g in Hawaii 2100 m2

TNC Case Study – Nike

Nike is a global sportswear company headquartered in Oregon in the United States.
The company employs around 75.000 people around the world, with an additional
500.000 people working for companies to which Nike subcontracts most of its
manufacturing in Eastern Asia.

Benefits for LEDCs:

• Nike factories create new jobs in countries like China, Vietnam, Thailand, and
Indonesia, allowing poorer people to earn a wage- the standard of living for many
people improves, increasing the ability to access food and quality housing.
• Nike has invested in and promoted the development of transport infrastructure in
the areas near the factories. Better roads make it easier for the population to get
around, and this has a positive ripple effect on other economic activity.

Disadvantages:

• Poor health and safety standards are a major threat to people employed in the
factories.
• Short-term contracts and payments below the national living wage also have a
devastating impact on the local community. For example, in one Cambodian
factory that produced clothes for Nike, several women collapsed after working
10-hour days, six days a week, and they reported feeling hungry and exhausted.
• Natural resources such as oil are being overexploited, as they are required for
manufacturing, harming the local environment.
• Factories are often footloose. This means Nike could relocate to another less
developed area if the local conditions or government policies are deemed
unfavorable – with a devastating impact on employment and the local economy.

3.2 Food Production

The influence of natural and human inputs on agricultural land use

Factors influencing agricultural production

Environmental factors or physical factors:

1. Climate

• Temperature (minimum 6°C for crops to grow) and rainfall (at least 250mm to
500mm) influence the types of crops that can be grown.
• The length of the growing season also influences the crops grown.
e.g. Hot, wet tropical areas favor rice, while cooler, drier areas favor wheat
(21~24°C). Wheat takes 90 days, whereas rice takes about 120 days. Some rice-
growing areas have two or three crops per year.

2. Relief

• Temperature decreases by 6.5°C for every 1000 meters gained in height.

• Lowlands, such as flood plains, are good for crops.
• Steep slopes hinder machinery and have thinner soils; lower, more gentle slopes
are less prone to soil erosion.
• Tea and coffee crops prefer the well-drained soil on hill slopes.
• South-facing slopes receive more sunlight.

3. Soil

• Fertility is important; poor soil means lower outputs or larger inputs of fertilizers.
• Floodplains are good for rice because of the alluvial soils.
• Good drainage reduces the dangers of waterlogging.

Social and economic factors:

1. Labour

• People working on farms may be unskilled laborers or skilled and able to

use machinery.
• In LEDCs, farmers use abundant cheap labour instead of machines. In MEDCs,
where labour is expensive, they use machines.

2. Capital (Finance)

• Capital, the money the farmer has to invest in the farm, can be used to increase the
amount of input into the farm.
• If a farmer can afford to invest capital, yields will rise and can create greater profits
which can be used for more investment.

3. Subsidies

• Farmers receive subsidies from the American government to support the growth of
commodity crops such as soy and corn. The modern federal agricultural policy
assumes that mass production through farming keeps the prices of food low. As a
result, it benefits the economy.

4. Technology

• Machines and irrigation are two types of technology that can increase yields.
• Greenhouses, with computer-controlled technology, provide ideal conditions for
high-quality crops. The computer controls the temperature, moisture level, and
amount of feed for the plants.
• Genetic engineering has allowed new plants to be bred that resist drought and
disease and give higher yields.

5. Market

• Farmers grow crops that are in demand and change to meet new demands.
• Markets vary throughout the year and farmers change their production to suit them.

6. Tradition

• Many farms simply grow the crops or raise the livestock that have been on the
farm for generations.

Farming types in the UK

1. Sheep farming

• Found in the upland marginal and peripheral areas of England, Wales,

and Scotland.
• Sheep farming can take place on steep slopes, with thin soils, high rainfall, and low
temperatures. The sheep feed on the poor grass that grows on the moorlands.
• Hill sheep farms receive subsidies from the EU and some farmers earn extra
income from campers and caravan users.
• The lambs produced each February and March are taken to lowland farms to be
fattened for sale as meat.
2. Dairy farming

• It is mainly found in southwestern England, the lowland areas of Wales,

and Lancashire. Dairy farmers prefer fertile, well-drained soils that produce high-
quality grass.
• Dairy farms supply milk to nearby urban areas as well as to dairies for the
production of milk products such as butter and cheese.
• The production of milk has been subsidized since 1945 but the quantity farmers are
allowed to produce has been limited by quotas since the 1980s.

3. Arable farming

• Arable farmers plough 耕/犁 the land to produce cereal crops such as wheat
and barley, vegetables, oil seed rape, and linseed.
• Arable farms are mainly found in eastern England, including Norfolk and
Lincolnshire, also the east of Scotland. The farmers use machinery and so prefer
flatter land.
• An ideal climate has warm summers with rain during the summer growing season.
• Arable crops attract guaranteed prices through the Common Agricultural Policy
(CAP) of the European Union.

4. Market gardening

• This is intensive farming, producing high-quality crops such as fruit, salad,

vegetables, and flowers.
• It can be found in Cornwall and Devon, the Isles of Scilly, and the Fens. Farms
may be as small as one hectare.
• Market gardeners use climate-controlled glasshouses, artificial soils, and irrigation
to obtain a high-quality output which is taken to markets in refrigerated lorries.

A case study of an agricultural system – intensive rice production in the

Lower Ganges Valley

An agricultural system: intensive (subsistence, arable) wet rice farming.

Location:

An important area of intensive subsistence rice cultivation is the lower Ganges valley
in India and Bangladesh. The Ganges basin is India's most extensive and productive
agricultural area and is the most densely populated. The delta region of the Ganges
occupies a large part of Bangladesh, one of the most densely populated countries in
the world. Rice contributes over 75 percent of the diet in many parts of the region.

The farming system

Inputs :

• Five-month growing season and temperatures over 21°C throughout the year.
• Monsoon rainfall over 2000mm providing sufficient water for the fields to flood,
which is necessary for wet rice cultivation.
• Heavy alluvial or clay soils provide an impermeable layer through regular flooding
over a long time period during the monsoon season.
• Annual floods deposit rich layers of alluvium (silt)
• Dry period for harvesting (mainly begins in late October)
• Large labour force
• Water buffaloes for ploughing
• Rice seeds

Processes :

• Ploughing
• Planting
• Harvesting

• Threshing 脱粒
• Weeding

Outputs :

• Rice

• Manure 肥料 from buffaloes for fertilizing

• Rice seeds
• Money

Padi-fields (flooded parcels of land) characterize lowland rice production. Water for
irrigation is provided either when the Ganges floods or using gravity canals. Rice is
first grown in nurseries, and then transplanted when the monsoon rains flood the paid-
fields, which may be stocked with fish for an additional source of food.

Water buffalo are used for work since it is the only draught animal adapted for life in
wetlands. The water buffalo provide an important source of manure in the fields
which is also used as domestic fuel.

The labour-intensive nature of rice cultivation provides work for large numbers of
people. This is important in areas of a very dense population with limited alternative
employment opportunities. The low incomes and lack of capital of these subsistence
farmers mean that hand labour still dominates in the region. It takes an average of
2000 hours a year to farm one hectare of land.

A high labour input is needed to:

• build the embankments (bunds) that surround the fields – these are stabilized by tree
crops

• construct irrigation canals where they are required for adequate water supply to the
fields
• plant nursery rice, plough the padi-field, transplant the rice from the nursery to the
padi-field, weed and harvest the mature rice crop

• cultivate other crops in the dry season and possibly tend a few chickens or other
livestock

A water-intensive staple crop

• Rice is the staple or main food crop in many parts of Asia because of its high
nutritional value.
• Current rice production systems are extremely water-intensive. Ninety percent of
agricultural water in Asia is used for rice production. Much of Asia's rice
production can be classed as intensive subsistence cultivation where the crop is
grown on very small plots of land using a very high input of labour. Rice
cultivation by small farmers is sometimes referred to as 'pre-modern intensive
farming' because of the traditional techniques used, in contrast to intensive farming
systems in developed countries such as market gardening which are very capital
intensive.
• The International Rice Research Institute estimates that it takes 5000 liters of water
to produce one kilogram of rice.
• 'Wet' rice is grown in the fertile silt and flooded areas of the lowlands while 'dry'
rice is cultivated on terraces on the hillsides.
• A terrace is a leveled section of a hilly cultivated area. Terracing is a method of soil
conservation. It also prevents the rapid runoff of irrigated water. Dry rice is easier
to grow but provides lower yields than wet rice.

Problems of Rice Growing

• Flooding – provides water and fertile silt to grow the rice but sometimes disaster
strikes when the floods are so severe that they destroy the rice crop.
• Drought – in some years there are little monsoon rains and the rice crop is ruined.
• Food shortages – Overpopulation results in overcultivation on flood plains, leading
to soil exhaustion and lower yields
• Little use of machinery or modern methods.
• Farm holdings are broken up into tiny plots and spread over a wide area. This
makes efficient farming difficult.
• Monopoly of land – The majority of the best farmland is owned by a few wealthy
landowners. Many of the poorer farm laborers have no land at all and struggle to
cultivate rice in more difficult conditions, especially as they do not have the
technology to increase soil fertility.

Natural Problems:

• soil exhaustion
• drought
• floods
• tropical cyclones
• pests
• disease

Economic and Political Factors:

• low capital investment

• rapidly rising population
• poor distribution/transport difficulties
• conflict situations

Short-term and long-term effects of food shortages

• With malnutrition, people are less resistant to disease and more likely to fall ill.
• Such diseases include beri-beri (vitamin B1 deficiency), rickets (vitamin D
deficiency), and kwashiorkor (protein deficiency).
• Malnutrition reduces people’s capacity to work so that land may not be properly
tended, and other forms of income successfully pursued.

Case Study - Food shortages in South Sudan

In South Sudan, nearly 4 million people are severely affected by food shortages.

South Sudan is currently in a war-torn state:

• 1955 conflict between both Christians and Muslims

• 2 civil wars--6 years and a peace agreement established at the end of 2005
• 2018--new peace agreement
• South Sudan is landlocked + experiences periods of high precipitation

Food insecurity:

• 60% could face food insecurity from May/June 2020 in the presence of a food
assistant
• 2019 flooding increases weed, pests + diseases in crop field + limits forage
available

South Sudan’s economy:

• 75% take part in agricultural production

• Main crop: sorghum, maize, millet (48% of the population relies) + majority is
rainfed
• 80% live in farms
• South and north-west dependent but south-east dependent on fish and
agropastoral production

Causes:

• Drought: Long-term decline in rainfall in southern Sudan (by 20% since the
1970s)
• High population growth (4% in 2013) increases demand for food- unsustainable
farming practices such as overgrazing and overcultivation are used- land
degradation and soil erosion
• Reliance on food imports from neighboring countries: Uganda, Kenya, and Sudan
• Civil war between government and rebel forces disrupts planting and harvesting
and insecurity along transport routes has hampered the delivery of food and other
humanitarian supplies

Issues/constraints causing this:

1. South Sudan

• HIV/AIDs--typically children are more vulnerable

• 53/1000 death rate
• 58 years old life expectancy
• leads to a high infant mortality rate and a high youthful population--
overpopulation (people give birth to more children as insurance for a high infant
mortality rate -also because people rely on subsistence farming, they typically
need children as labour + as “pension” in old age)
• Harder to access medicine (ART-Antiretroviral treatment) + high amount of
workers needed to manage and takes up workers
• Average calorie intake: 1318 kilojoules (400 under minimum)
• High rates of malnutrition mean higher vulnerability to diseases

2. Natural disasters

• Flooding--leads to poisoning of water sources and spreading of diseases such as

cholera
• Early 2019-armyworm wiped out the amount of crops and reduced cereal needs

3. Refugee displacement (resulting from war)

• Found themselves displaced because of poorly enforced land laws

• Continuous eviction due to military confiscations of land and refugees don’t have
a reliable land plot to plant crops- this becomes more of an issue as a majority of
South Sudan relies on subsistence farming
• 90% of South Sudan rely on subsistence to supply food for themselves

4. War and conflict

• War has occurred constantly following the independence of South Sudan

following the assassination of their president in 2013-2015 between Nuer and
Dinka tribes that were constantly broken
• Cattle raids
• Interrupts natural grazing patterns of cows especially between Nuer and Dinka
tribes
• Can lead to overpopulation which is a result of war-overpopulation leads
to desertification and overgrazing of land
• High amounts of people using their land + small amount of land available

(resulting from poor land laws and confiscations 征收 + conflict over land)
• Leads to land erosion
• Can usually inflate prices of food and reduces availability causing famine and
unemployment (this can result from unreliable transport)
• 5% roads accessible, remaining 95% is arable and usually muddied during winter
• Double taxation and tolling→farmer’s have reduce the amount of load delivered
to urban areas and will have to increase prices in order to pay for transport fees
• Also lack of urban-rural roads (some are bottlenecked due to conflict) so farmers
unable to transport food or access agricultural inputs (eg: fertiliser) to properly
optimise the amount of land
• COVID-19
• Trading routes are bottlenecked especially between Ughanda and China
• China is a major supplier for South Sudan but COVID 19 has lead to border
closures, people may be forced to forgo food
• Consequences/Impacts:
• Leading to famine + malnutrition which increases vulnerability to diseases (eg:
HIV)
• Malnutrition increases vulnerability to diseases
• 4 million people (40%) are short of food in South Sudan
• 70000 died from hunger/disease in the civil war
• Aid workers stopped WFP because the situation was considered too dangerous
for the drivers and aid workers

Possible solutions for food shortages

Food aid:

• Relief food aid is delivered directly to people in times of crisis.

• Programme food aid is provided directly to the government of a country for sale on
local markets (this usually comes with conditions from the donor country).
• Project food aid is targeted at specific groups of people as part of longer-term
development work.

Why is food aid sometimes controversial?

• The charity CARE has criticized the method of US food aid to Africa. CARE sees
the selling of heavily subsidized US produced food in African countries as
undermining the ability of African farmers to produce for local markets, making
 countries even more dependent on aid to avoid famine. CARE wants the USA to
send money to buy food locally instead.
• Friends of the Earth say that a genetically modified rice, not allowed for human
consumption and originating in the USA, has been found in food aid in West
Africa.
• Food aid is very expensive, not least because of the high transport costs involved.

The Green Revolution– scientific advances to increase agricultural yield

Advantages:

• Yields are twice to four times greater than for traditional varieties.
• The shorter growing season has allowed the introduction of an extra crop in some
areas.
• Farming incomes have increased, allowing the purchase of machinery, better seeds,
fertilizers, and pesticides.
• The diet of rural communities is now more varied.
• Local infrastructure has been upgraded to accommodate a stronger market
approach.
• Employment has been created in industries supplying farms with inputs.
• Higher returns have justified a significant increase in irrigation.

Disadvantages:

• High inputs of fertilizer and pesticides are required to optimize production. This is
costly in both economic and environmental terms. In some areas, rural
indebtedness has risen sharply.
• HYs require more weed control and are often more susceptible to pests and
diseases.
• Middle and higher-income farmers have often benefited much more than the
majority on low incomes, thus widening the income gap in rural communities.
Increased rural-to-urban migration has often been the result.
• Mechanization has increased rural unemployment.
• Some HYVs have an inferior taste.
• The problem of salinization has increased along with the expansion of the irrigated
area.

The high-yielding varieties introduced during the Green Revolution are usually low in
minerals and vitamins. And since the new crops have displaced the local fruits,
vegetables and legumes that traditionally supplied important vitamins and minerals,
the diet of many people in the developing world is now extremely low in zinc, iron,
vitamin A and other micronutrients.

UNEP’s options to improve food security

The United Nations Environment Programme has argued that increasing food energy
efficiency provides a critical path for significant growth in food supply without
compromising environmental sustainability.

Options with short-term effects:

• price regulation on commodities and larger cereal stocks to decrease the risk of
highly changing prices
• reduce/remove subsidies on biofuels to cut the occupying of cropland by biofuels

Options with mid-term effects:

• reduce the use of cereals and food fish in animal feed

• support farmers in developing diversified eco-agricultural systems that provide
critical ecosystem services (for example water supply and regulation) as well as
adequate food to meet local and consumer needs
• increased trade and improved market access by improving infrastructure and
reducing trade barriers

Options with long-term effects:

• limit global warming, including the promotion of climate-friendly agricultural

production systems and land use policies at a scale to help mitigate climate change
• raise awareness of the pressures of increasing population growth and consumption
patterns on sustainable ecosystem functioning

3.3 Industry

Industrial systems and types

• Inputs are the elements that are required for the processes to take place. Inputs
include raw materials, labour, energy, and capital.
• Processes are the industrial activities that take place in the factory to make the
finished product.
• Outputs comprise the finished product or products that are sold to customers.
Sometimes by-products may be produced. A by-product is something that is left
over from the main production process which has some value and therefore can
be sold. All manufacturing industries produce waste product which has no value
and must be disposed of. Costs will be incurred in the disposal of waste products.
• Large scale and small scale - Depending on the size of plant and machinery, and
the numbers employed.
• Heavy and light - Depending on the nature of processes and products in terms of
unit weight.
• Heavy industry uses large amounts of bulky raw materials, processing on a huge
scale and producing final products of significant size.
• Market-oriented and raw material-oriented - Depending on the location of the
industry or firm, which is drawn either towards the market or the raw materials
required (usually because of transportation costs).
• Processing and assembly - Processing involves the direct processing of raw
materials; assembly has to do with putting together parts and components.
• Processing industries are based on the direct processing of raw materials and are
often located close to their raw materials.
• Assembly industries put together parts and components that have been made
elsewhere and usually have a much wider choice of location than processing
industries and thus they are often described as footloose industries.
• Capital-intensive and labour-intensive - Depending on the ratio of investment in
plant and machinery to the number of employees.
• Fordist industries - mass produce on a large scale and make standardized
products.
• Flexible industries - make a range of specialized products using high technology
to respond quickly to changes in demand.
• National, many firms in the small (to medium-size range manufacture in only one
country).
• Transnationals, which are usually extremely large companies, produce in at least
two countries but may manufacture in dozens of nations.

Factors affecting the location of the industry

Physical factors:
Site: The availability and cost of land is important. Large factories will need flat,
well-drained land on solid bedrock. An adjacent water supply may be essential for
some industries.

Raw materials: Industries requiring heavy and bulky raw materials that are expensive
to transport will generally locate as close to these raw materials as possible.

Energy: At times in the past, the industry needed to be located near fast-flowing rivers
or coal mines. Today, electricity can be transmitted to most locations.

Natural routeways and harbours: These were essential factors in the past and are still
important today as many modern roads and railways still follow natural routeways.
Natural harbours provide good locations for ports and industrial complexes often
found at ports.

Climate: Some industries such as aerospace and film benefit directly from a sunny
climate. Indirect benefits such as lower heating bills and more favourable quality of
life may also be apparent.

Human factors:

Capital (money): Business people, banks, and governments are more likely to invest
money in some areas than others.

Labour: Increasingly it is the quality and cost of labour rather than the quantity that
are the key factors here. The reputation, turnover and mobility of labour can also be
important.

Transport and communications: Transport costs are lower in real terms than ever
before but remain important for heavy, bulky items. Accessibility to airports, ports,
motorways, and key railway terminals may be crucial factors for some industries.

Markets: The location and size of markets are a major influence for some industries.

Government influence: Government policies and decisions can have a big direct and
indirect impact on the location of the industry. Governments can encourage industries
to locate in certain areas and deny them planning permission in others.

Quality of life: Highly skilled personnel who have a choice about where they work
will favour areas where the quality of life is high favourable quality of life may also
be apparent.

Factors influencing firm decisions

• Location - companies decide on particular locations for a variety of reasons. Most
will look to the location that is seen as the least-cost location or the highest-profit
location. A poor choice of location can mean a company making a loss and
eventually closing. An excellent location, resulting in considerable profits, may
prompt a company to expand.
• Scale of production - the amount of a product a company plans to produce will be
an important factor in deciding the location. Companies can achieve economies
of scale by manufacturing more of a product. However, if they decide on a larger
scale of production, they have to be sure that they have a physical site large
enough for the desired scale of production, can recruit sufficient skilled labour in
the region and will have enough customers for their higher scale of production.
• Methods of organization - companies can follow various methods of organization
from traditional to highly innovative. Location factors can influence such
decisions. The most advanced companies in an industry tend to be very capital-
intensive while more traditional companies tend to be more labour-intensive.
• The product or range of products manufactured - many large companies produce
a range of products.

Industrial agglomeration

• Industrial agglomeration is the clustering together of economic activities.

• Agglomeration can result in companies enjoying the benefits of external
economies of scale. This means the lowering of a firm's costs due to external
factors. The success of one company may attract other companies from the same
industry group.

External economies of scale can be subdivided into:

• Urbanization economies are the cost savings resulting from the urban location
due to factors such as the range of producer services available and the investment
in infrastructure already in place.
• Localization economies occur when a firm locates close to suppliers (backward
linkages) or firms that it supplies (forward linkages). This reduces transport costs,
allows for faster delivery, and facilitates a high level of personal communication
between firms.

Industrial estates

• An industrial estate is an area zoned and planned for industrial development, also
known as industrial parks and trading estates, which have offices and light
industry, rather than larger-scale industry.
• Industrial estates can be found in a range of locations, from inner cities to rural
areas. Industrial estates are usually located close to transport infrastructure,
especially where more than one form.
Logic behind:

• concentrating dedicated infrastructure in a small area to reduce the per-business

expense of that infrastructure
• attracting new business by providing an integrated infrastructure in one location
• separating industry from residential areas to try to reduce the environmental and
social impact eligibility of industrial estates for grants and loans under regional
economic development policies.

The changing location of manufacturing

Changes in the location of the manufacturing industry can be recognized at a range of

scales:

• The global shift in the manufacturing industry from the developed world to NICs
and developing countries has already been mentioned as part of the process of
globalization.
• Within each country, rich or poor, there are areas where manufacturing is highly
concentrated and other regions where it is largely absent. Similar concentrations
can be recognized in other countries as well as changes in location over time.
Everywhere the most significant locational change has been from traditional
manufacturing regions, more often than not on coalfields, to higher quality-of-life
regions offering the hard and soft infrastructural requirements of modern
industry.
• Within individual regions or countries, manufacturing has historically
concentrated in and around the major urban areas. However, in recent decades
there has been a significant shift of industry towards greenfield rural locations.
This movement has been so great that it is generally recognized as the most
important locational change of manufacturing in the developed world since 1950.
• At the urban scale, the relative shift from inner city to suburbs increased as the
twentieth century progressed. Although there has been much debate about the
demise of the inner city in the developed world, many would agree that the loss
of employment, much of it in manufacturing, was the initiating factor in the cycle
of inner city decline.

Case study of Bangalore - India's high-tech city

Bangalore is located in the south of India and is also the most important city in India
for high-technology industry.
Explain the reason for the location and development of Bangalore as a major
international ICT hub.

1. Environmental attractions

• Bangalore has a pleasant climate, which is moderated by its location on the

Deccan Plateau over 900m above sea level.
• Because of its dust-free environment, large public sector undertakings such as
Hindustan Aeronautics Ltd and the Indian Space Research Organization were
established in Bangalore by the Indian government.
• The state government has a long history of support for science and technology.
There are many colleges of higher education in this sector and there has been
large-scale investment in science and technology.
• India's ICT sector has benefited from the filtering down of business from the
developed world. Many European and North American companies which
previously outsourced their ICT requirements to local companies are now using
Indian.
• Bangalore has steadily built up a large pool of highly skilled labour that can
undertake a wide range of complex tasks in high-technology industries. There has
been very high investment into the city's infrastructure to accommodate such a
high rate of expansion.
• Bangalore is the fourth largest technology cluster in the world after Silicon
Valley, Boston and London.
• The number of ICT companies increased from 13 in 1991 to 2200 in 2013.
• The ICT industry is divided into three main clusters:Electronics City,
International Technology Park and the Software Technology Park. New, smaller
clusters have emerged in recent years.
• The city has attracted outsourcing right across the IT spectrum from software
development to IT enabled services.
• The city boasts 21 engineering colleges.
• Companies in Bangalore employ about 35% of India's pool of ICT professionals.

• Bangalore accounts for half of the 260 biotechnology companies in India.

Explain what has attracted high-technology industry to Bangalore.

• Bangalore has a pleasant climate, which is moderated by its location on the

Deccan Plateau over 900m above sea level.
• labour costs are considerably lower
• a number of developed countries have significant ICT skills shortages
• India has a large and able English-speaking workforce (there are about 80 million
English speakers in India)
• 80% of global ICT companies have based their India operations and R&D centres
in Bangalore.
• NASDAQ, the world's biggest stock exchange, opened its third international
office in Bangalore in 2001.

3.4 Tourism

• Tourism: travel away from the home environment for leisure, recreation, and
holidays/ to visit friends and relations/ for business and professional reasons
• A tourist is someone who spends at least one night away from their normal place
of residence.
• Domestic and international tourism
Key travel motivators
Reasons behind the trend in tourism:
Tourism has grown massively as an industry over the past century for a variety of
reasons:
• Advances in travel technology - there is a wider range of ways to travel as a
tourist and these methods are widely available. You can be a tourist using a car, a
train, and most importantly an airplane. Motorways have linked places together,
whilst Budget airlines such as EasyJet have brought prices down and increased
traffic volumes.
• Holiday entitlement - in many rich nations has increased over the past century.
This means that people can take more holidays during the year which swells the
number of tourists.
• Holiday entitlement (also known as annual leave entitlement) = statutory annual
leave required by law + contractual annual leave
• People have more disposable income now - this is income that people have to
spend on themselves. This is partly because of salary rises and partly because the
price for essential goods such as food and clothing has fallen. Many families now
have 2 income earners rather than one; they have fewer kids and often have a car.
All of these factors increase the likelihood of people becoming tourists.
• The availability and type of holidays have increased - mass tourism and package
holidays have opened up markets to huge numbers of people. Extreme and
ecological tourism are also becoming popular, further increasing the choice.
• The Media - extensive coverage of holiday types has increased the demand to
travel. Most newspapers have a "holiday" section, whilst TV shows can show
people the enormous choice on offer – some shows can promote extreme tourism
whilst others promote mass tourism. Gap years have also been encouraged by the
media and are increasing in popularity.
•

Means and purpose of travel:

• Leisure travel is the main purpose of visit in all world regions except the Middle
East, where visiting friends and relatives (VFR), or for health or religious
purposes predominates. The share of leisure travel has grown from 50% in 2000
to 56% in 2018.
• The share of air travel has increased from 46% in 2000 to 58% in 2018, while
land transport has decreased from 49% to 39% in the same period.
Reasons why people travel:
• Culture: People travel to experience different religion, history, and traditions.
(Art/architecture/cultural monuments/museums/ political sites)
• Entertainment: People travel to experience different entertainment opportunities.
These include Disney World, local community Special Events, Festivals and
adventure activities, food and drink.
• Natural Resources: People travel to experience the natural beauty of the area.
• (The physical landscape – such as beaches, mountains, river, lakes and glaciers;
Ecosystems- such as rainforest or tropical grasslands; Weather and climate –
most tourists seem to like it warm and dry)
Mass Tourism
The act of visiting a destination with large amounts of people at one time. Often there
are tour groups, and package deals.

Local Attitudes Toward Tourism:

• Initially local residents may value the economic benefits when tourism begins to
develop in their area.
• However, once they realize the adverse effects they may fear or despise tourists
and tourism.
• They may fear the loss of their culture, or they may not appreciate cultural
differences.
• Governments have become more aware of this problem and may use
management techniques to alleviate such problems; the key is educating
foreigners on local customs and try to encourage them to be sensitive to the host
culture.
• Doxey’s index of irritation caused by tourism

• Butler’s model – the cycle of tourism

Impacts of Tourism on the Destination Social (Cultural)
Positive:
• Encourages education in order to work in tourist sector and should improve
linguistic skills (local)
• May improve a country’s reputation (national)
• Historical ruins may be protected or rebuilt to attract tourists (local)
• Friendship and positive exchange of culture between tourists and locals (local)
• Improvements to infrastructure and new leisure amenities that result from tourism
(local or national)
• Encourages the preservation of traditional customs, handicrafts and festivals that
might otherwise have been allowed to wane (local)
• Increase global awareness of issues such as poverty and human rights abuses
(national)
Negative:
• Loss of locally owned land as tourism companies buy up scenic and accessible
locations (local)
• People may become more materialistic with arrival of international tourists (local
or national)
• Increase of tourists may cause greater congestion leading to more traffic
accidents and slowing down movement of local people (local)
• Disruption and erosion of cultural identity and values (local or national)
• Increase in certain types of crime and problems such as theft, prostitution, drug
use and alcoholism (local)
• Abuse of human rights by governments and companies in the desire to maximize
profits (local or national)
• Loss of housing for local people (local)
Impacts of Tourism on the Destination Economic
Positive:
• Tourism benefits other sectors of the economy, providing jobs which in turn
allows peoples’ wages to be spent on good and services (multiplier effect) –
(national)
• Creates extra tax revenue for the government (national)
• Provides jobs in rural areas thus reducing rural-urban migration (local and
national)
• Support many jobs in the informal sector, where money goes directly to local
people (local)
• Local infrastructure like roads and electricity may be improved (local)
• People learn new skills that can then be transferred to other parts of the economy
(local)
Negative:
• Much of the money spent on tourism may go to huge international companies
rather than benefit the local community (economic leakage) (national)
• Jobs created by tourism are often labor-intensive, seasonal and low-paying (local)
• Locations can become too dependent on tourism (local)
• Many management jobs may be given to workers from overseas (local)
• The increased demand for products and services may cause inflation (local)
• Money borrowed to invest in the necessary infrastructure for tourism increases
national debt or may be passed on to locals in the form of higher taxes (national)
Impacts of Tourism on the Destination Environmental
Positive:
• National Parks may be created to protect areas of natural beauty (local)
• Animals obtain an economic value if people are willing to pay to see them. If the
value of the animal is greater alive than dead, people will protect them (local or
national)
• Entrance fees and guide fees provide funding for maintaining national parks and
forests.
• By creating alternative sources of employment, tourism reduces problems such as
overfishing and deforestation in LEDCs.
Negative:
• Increased pollution through traffic emissions, littering, and increased sewage
production and noise.
• Large amounts of scarce freshwater are consumed in hotels, golf courses, and
other tourist attractions.
• Tourist developments may cause the destruction of forests, sand dunes, coral, and
other areas.
• Noise and light pollution created by tourist developments may also interfere with
animals.
Sustainable Tourism
• Sustainable tourism – The attempt to make as low an impact on the environment
and local culture as possible, while helping to create future employment for local
people.
• Goal is to create a positive experience for local people, tourism companies and
tourists.
• Sustainable tourism is an adopted practice in successful ecotourism.
• Ecotourism – Misool, Raja Ampat, Indonesia & Galapagos Islands, Ecuador
• Protected areas and national parks – Misool, Raja Ampat, Indonesia &Galapagos
Islands, Ecuador
• Tourist hubs – Galapagos Islands, Ecuador
• Quotas and limits – Galapagos Islands, Ecuador1
Managing Tourist Destinations
• Spatial zoning (designated areas meant for specific activities)
• Spatial concentration or dispersal of tourists
• Restricted entry based on number of tourists, or regulating entry through pricing
(and using the fees to upkeep the environment)
Ecotourism in the Coral Triangle
The coral triangle is one of the most biodiversity place on the planet. 465m2
Misool, Indonesia
Destructive fishing - put cyanide bombs to catch fish
illegal poaching 非法猎捕
Rangers patrols
Marine Protected Area (M.P.A.) in east Indonesia, a reserve with no fishing
Luxury ecologist resort – charge high fees to maintain the natural environment
An area popular for turtle poachers
Employ 200 local workers
Success--- more threats in poaching

3.5 Energy

Renewable & Non-renewable energy

Renewable energy: Energy that is naturally occurring and potentially infinite.

Solar

Sitting: On large areas of flat land with high sunlight intensity

Typical Countries: China, USA, EU

Advantages:

• Very good for small-scale uses.

• Alternative and appropriate technology for LEDCs.
• Environmentally friendly- no pollution.
• Reduce energy bills- decrease the amount of electricity pulled from the grid with
solar panels.

Disadvantages:

• High upfront cost- expensive for purchasing and installing.

• Weather dependent.
• Large-scale (power station) projects still in development.
Wind

Sitting: On large areas of flat ground with abundant wind resources

Typical Countries: England, Germany, China(1/4 of world wind energy capacity)

Advantages:

• Clean- generates no greenhouse gases during operation.

• Cost-effective- ongoing costs are relatively low once a wind turbine is built.
• Space efficient- wind turbines can coexist with agricultural land use.
• Can contribute to energy independence- reduce reliance on imported fossil fuels.

Disadvantages:

• Intermittent- Wind speeds are not constant, and they vary with the time of day,
season, and location.
• Noisy and visually unappealing- can lead to local opposition to their installation.
• Environmental deprivation.

Biofuel/Biomass

Siting: Around large fields of crop lands or livestock farms to gain the bio-wastes for
combustion

Typical Countries: USA, Brazil, Germany

Advantages:

• Abundant- as it originates from products that are continuously produced.

• Reduce waste- use waste products and reduce the overall waste going to landfills.

Disadvantages:

• Combustion not entirely clean- releases greenhouse gases

• Require large areas of agricultural land for growing and burning.
• Highly specialized equipment is needed to conduct sustainable biofuel power
production.

Geothermal

Siting: Location with rich magma convection or hotspots

Typical countries: USA, Indonesia, Turkey

Advantages:

• Reliable- not dependent on weather conditions and can provide a continuous

power supply.
• Environmentally friendly- emits minimal greenhouse gases.
• Low operating cost-
• Hot water can also be used for heating the local city.

Disadvantages:

• Limited suitable location- can only be produced in areas where hot underground
steam or water can be tapped effectively.
• Expensive to build
• Can cause earthquakes- can cause surface instability leading to earthquakes.

Tidal
Advantages:

• Tidal generators have a long lifespan.

• Unlimited supply.
• No pollution.
• Constant and predictable supply- making it easier to plan power production
schedules.

Disadvantages:

• Expensive to build.
• Tidal installations can impact marine life.
• Limited operating hours- tidal power plants can only generate electricity when
the tide is flowing in and out, which is about 10 hours each day.

Wave

Advantages:

• Masses of free energy.

Disadvantages:

• Expensive to develop.
• Equipment to survive severe weather is still being developed.

Hydroelectric Power

Advantages:

• Highly efficient- converting the potential energy of stored water into electricity.
• Reliable and predictable- can generate electricity consistently as it is less subject
to weather variations.
• Little pollution when running.
• Cheap once set up.
• Lakes can be used for recreation and to stop flooding.

Disadvantages:

• Environmental concerns- The construction of dams and reservoirs can

significantly impact the local environment, altering habitats, affecting wildlife,
and even displacing people.
• Cost concerns- Building dams and power plants is very expensive and takes a
long time, large projects can get LEDCs in debt.
• Limited suitable locations- not all places have access to large volumes of flowing
water necessary for hydroelectric power.

Non-renewable energy: Energy that can not be reproduced in the time that it takes to
consume it.

Fossil fuels: A fuel formed from the remains of former living things.

Coal

Siting: Near coal mines and water for raw materials and cooling

Typical Countries: China, India, South Africa

Advantages:

• Reserves are likely to last 300 years.

• Improved technology has made conversion to electricity more efficient.

Disadvantages:

• Most easily accessible coal has been used up so production costs have risen.
• Burning coal causes air pollution and the release of greenhouse gases.
• Mining causes lots of visual pollution.

Oil

Siting: Near oil sources, near ports if oils are imported

Typical Countries: USA, China, Venezuela

Advantages:

• Efficient to burn.
• Easy to transport.
• Used for the petrochemical industry.

Disadvantages:

• Reserves may only last another 50-70 years.

• Greenhouse gases.
• Huge environmental problem of oil spills.
• Vulnerable to political and military pressure.

Gas
Siting: Near sources of natural gas and away from the cities

Typical Countries: Belarus, England, Russia

Advantages:

• Cheaper and cleaner than oil and coal.

• Easy to transport.
• Safer than nuclear energy.

Disadvantages:

• Only going to last 50-70 years.

• Greenhouse gases.
• Terminals are unattractive and take up a lot of space.

Fuelwood

Siting: Near wood resources e.g. Forests

Typical countries: Sub-Saharian Africa

Advantages:

• The wood is free.

Disadvantages:

• The trees are important for shelter, food, fuel, and shade.
• Collecting wood is a time-consuming job for women and children.

Nuclear

Siting: Near rivers or oceans to obtain water for cooling purposes, away from the
cities to ensure safety

Typical Countries: France, USA, Canada, China

Advantages:

• Nuclear reactors have a very high energy output, which is extremely efficient
when compared to other energy sources.

• Nuclear fission produces very small amounts of greenhouse gases, which is a

potentially effective tool for reducing greenhouse gas emissions.
• Long life span - not going to run out.

Disadvantages:

• Although nuclear power plants are designed with multiple safety systems,
accidents can still occur e.g. Chernobyl.

• The production of radioactive waste.

• Potential health risks.

Case study of energy supply – China

• China consumes 26% of the world’s energy supply, which helps great economic
growth.
• China is the world’s largest greenhouse emitter.
• Not energy secure- massive import of oil and gas

• Longstanding pollution problem & prone to outages 电力停供- severely hamper

industry
• Radical transformation- peak carbon emission by 2030 & make carbon neutral by
2060.
• Transform own energy system & build a supply chain- make other countries
dependent on China for energy needs.
• Economics reform in the ‘80s and ‘90s started privatizing industry & opening
trade with the rest of the world- rapidly increasing energy consumption- dramatic
addition of coal-fired plants- air pollution (Beijing- the most polluted city)-
growth unsustainable- massive emission & massive import of fossil fuel (oil &
natural gas) for consumption.
• Committed to increasing the deployment of renewable energy in 2010, its
investments helped drive great price drops across the industry.
• Renewables still only make up a tiny fraction of China’s energy mix now.
• Starts with renewable megaprojects to cut emissions.
• Qinghai- in western China & wind-swept & sunny & very low population
density- a photovoltaic power plant spread out over 600 square kilometers
(essential requirements: sufficient solar light resources & large-scale desertified
land- allow plant construction)- contains a hydro dam & a massive solar buildup
& wind installation- all running can produce nearly 20 gigawatts energy.
• China plans to scale up to 1.2 terawatts in 2030 of wind and solar capacity.
• Power transmission- built a huge network of ultra-high voltage power lines- from
the west to where it’s needed in the population and industrial centers in the east-
25 specialized direct current cables.
• Nuclear power- firm clean power (able to generate carbon-free electricity when
wanted rather than relying on the sun shining or the wind blowing)- plans to build
150 new reactors in the next 15 years- build huge infrastructure quickly- benefits:
stable, low-cost electricity at a certain rate and a certain production cost.
• Big green technology supplier in the green economy, solar panels & turbines &
elements used for processing- 75% of the world’s supply chain for solar.
• Dependence on China causes strain for other countries- Covid-related production
issues caused the price of solar panels to rise for the first time in decades.
• Concerns about China’s dominance over materials needed to make lithium iron
batteries- cobalt mainly produced in the Democratic Republic of Congo, where
 China has bought up most of its supply- Congolese government alleges the poor
working conditions and unpaid debts by a Chinese mining company, but he
majority of cobalt-producing mines are still at least part Chinese owned- made
the process of these metals into the chemicals for the batteries an almost
monopoly.
• A sudden increase in the price of coal led to widespread power shortages in
China- rational electricity & increase coal production- largely cancel out the
gains of adding enormous renewables in its decarbonization plan with new fossil
fuel addition.

China is the world’s largest energy consumer and producer.

China uses HALF of the world’s coal.

China is the world’s leading oil importer.

Natural gas use in China is small.

Encourage natural gas and renewable.

China is building half the world’s new nuclear plants.

Chinese shale gas 页岩气 resources are vast.

China’s Energy Consumption: Coal

• China is the world’s largest producer and consumer of coal, making coal an
important industry in China, supplying millions of jobs.

• In 2010 China’s coal consumption made up 70% of its overall energy mix, China
plans to reduce that to 62% by 2035.

• While China intends to reduce its reliance on coal as part of its overall energy
mix to reduce carbon emissions, China’s overall use of coal is expected to
continue to be high (possibly even doubling).

• It is an important part of meeting China’s internal energy demands and

contributing to China’s continued rapid economic growth.

• China faces a problem- a lot of the demand for coal is in the south and southeast
along the coast, whereas most of China’s coal mining takes place in the north,
and coal is bulky to transport.

• Coal reserves in China are large. China used to be a major coal exporter, but with
increased internal demands China started to only be self-sufficient with coal.
More recently, increased consumption of coal has led to China no longer being
self-sufficient in their coal needs, and China has had to import coal; continued
consumption suggests China will need to begin importing more and more coal to
meet their energy demands in the future.

Drawbacks to coal:

• Air Pollution: Uncontrolled burning of coal releases sulfur oxides, nitrogen

oxides, hydrocarbons, particulates, and carbon dioxide into the atmosphere,
leading to smog, acid rain, and other environmental effects.

• Land and water impacts: both surface mining and underground mining cause
environmental damage.

• Limited uses: coal is bulky, not convenient to move, and incapable of powering
the internal combustion engines of vehicles.

Coal and Pollution in China

• 80% of China’s Carbon Dioxide emissions are from coal.

• 85% of China’s Sulphur Dioxide emissions are also from coal.

• In 2009 a new coal-fired power station was built every 7-10 days in China.

• China is receiving internal pressure to reduce emissions, but it also receives

strong international pressure to move towards more environmentally friendly and
sustainable energy sources.

• Plans to develop cleaner coal technologies are part of China’s energy policy.

• China is already the new leader in building more efficient and less polluting coal
power plants.

Coal production by province in China

Energy consumption in China

Reduce its environmental impact through:

• Energy conservation

• Placing a strong emphasis on domestic resources

• Diversified energy development

• Environmental protection

• Mutually beneficial international cooperation

China’s Strategic Petroleum Reserve

• China has sought to secure sources of overseas oil supplies (investment in

African energy sources; long-term contracts in Latin America, the Middle East, &
Asia; as well as deals with Iran that have brought international criticism)

• Oil reserves are depleting & prices are high; China should switch away from its
use to meet its long-term energy needs.

Solar installations
Hydroelectricity

• China is one of the world’s largest producers of hydroelectricity along with

Canada, the USA, and Brazil.

• Hydroelectric power made up 6% of China’s energy mix in 2008 (now 6.6%)

• China is home to the world’s largest hydroelectric plant in the world (The Three
Gorges Dam).

• The Three Gorges Dam was predicted to provide 10% of China’s energy output
but after it was fully completed in 2012 it provided 2%.
Three Gorges Dam

• The dam is over 2 km long and 100m high.

• There are 38 main generators giving the scheme a massive 22500MW generating
capacity.

• The dam supplies Shanghai and Chongqing in particular with electricity.

• This is a multipurpose scheme that also increases the river navigational capacity
and reduced potential for floods downstream.

3.6 Water
Water demand: the volume of water requested by users to satisfy their needs.

Water use
Main purposes of water use:

1. Agricultural = for use by farming

• In MEDCs, irrigation is mechanized. Sprinklers or timed irrigation feeds are
used. Where agriculture is common, vast amounts of water can be released easily.
• In LEDCs, irrigation channels are prone to losing water through evaporation.
2. Industrial = for use by any industry
• Industries in MEDCs can be on a large scale, which demands a lot of water.
Corus Steelworks in South Wales is an example of an industry that needs a large
water supply.
• LEDCs have smaller-scale cottage industries, which demands less water in the
production. There will be more demand for water as more multinational
companies locate in LEDCs. In India, Coca-Cola uses over a million liters of
water a day to produce drinks.
3. Domestic = for use in houses

• In MEDCs, there are a lot of facilities that demand water use. E.g. showers,
baths, washing machines, and swimming pools.
• In LEDCs, water is used more sparingly as many people do not have access to
piped water. Water may be brought to the home from a well or stream.
Water use in different places:

• In developing countries, agriculture accounts for over 80% of total water use. In
developed countries, agriculture accounts for slightly more than 40%.
• Water allocation varies within countries. Irrigation accounts for 80% of water
demand in the western USA, but only 6% in the east. (In the eastern US, water is
plentiful and conflicts over its rare use. Because water rights follow the “riparian
principle”, that water is attached to the land over which it flows in this system:
Landowners are allowed to take unlimited amounts of water that flow through
their land & leave the water unpolluted & free to flow on for other landowners. If
there isn’t enough water, all users must share the burden equally: every affected
landowner agrees- water can be diverted out of the watershed. In the western
states, water is much scarcer but has a high demand. The western system
developed “prior appropriation” which claims that water was granted on a “first
come, first served” basis, encouraging claim holders to take as much water as
possible and use it as quickly as possible.)
• In agriculture, some places in the world, depend on rainfall, rivers, and
groundwater. In the Middle East and North Africa, where rainfall is low, it
depends on artificial irrigation systems.

Water footprint

Water footprint: the total volume of water consumed and polluted for the production
of the goods and services used by the consumer. (direct water use by people + their
indirect water use)

The three elements of the water footprint:

• The green element- refers to the consumption of water contained in plants and
soil in the form of moisture, without being part of any surface or body of
groundwater. One example is rainwater, provided that it does not stagnate in the
soil and is able to filter into the ground. This element also includes the value of
non-irrigated agriculture in terms of saving the blue element.
• The blue element- refers to the consumption of surface water resources and
groundwater throughout the production chain of a particular product. In terms of
consumption, it refers to the volume of water used and then evaporated or
incorporated into a product; from either surface or groundwater, that is not
returned to the reservoir from which it is drawn.
• The gray element- refers to the pollution of water resources and is defined as the
volume of freshwater needed to dilute the pollutant load generated by a given
process, so as to maintain unchanged the concentrations naturally present and the
quality standards of the water from its original source.

Renewable water resource

Natural renewable water resources: the total amount of a country's water

resources (internal and external resources), both surface water and groundwater,
which is generated through the hydrological cycle. (The amount is computed yearly).

Water Supply

Water Supply Methods:

• Dams and reservoirs

• Wells and boreholes 井眼/钻孔

• Desalination (takes away mineral components from saline water)
• Cloud seeding (manipulating existing clouds to help produce more rain)

A good water supply system

• People would become dehydrated without it.

• Continuous supplies are ensured by good infrastructure.
• People will not have to walk long distances to fetch water/don’t waste time
fetching water.
• Water will be clean/not carry diseases so people will not suffer water-borne
diseases or example/good health.
• Industries depend on water for processing/cooling.
• Electricity is generated using water supplies.
• Hospitals have access to water.
• Don’t have to worry about water shortages.
• Long life expectancy.

• Hygiene/sanitation 公共卫生 improved.

Water Scarcity

Economic water scarcity: When water is available, but it’s inaccessible or unusable
for some reason. This might be because its groundwater is expensive to extract/ the
cost of transporting water is too expensive/ the supply of water has become polluted.

Physical water scarcity: When there is not enough water available (mostly caused by
low precipitation rates).

Water Management

• Encourage the systematic reuse of ‘grey’ water.

• Promote investment in recycling and reclamation systems.

Water and Conflict

• 2 million people in Gaza rely on the coastal aquifer for water, but 90% of it is
undrinkable due to salinization and sewage leakage.
• Israel supplies Gaza with only 5% of its water needs, but much of it is lost due to
damaged infrastructure.
• Conflict between Israel and Gaza caused $34 million in damages to Gaza's water
infrastructure in 2014.

• The blockade 封锁 on Gaza prevents the supply of materials needed for repair
and reconstruction of water infrastructure.
• Residents are forced to use salty and polluted tap water for bathing and washing
and must buy expensive bottled water for drinking and cooking.

Water Security

Water security: A society's capacity to have enough water of sufficient quality for
survival and to carry out different productive activities.

Case Study- Water Supply in China

China's water use in 2020：

• Agriculture: 361.24 billion cubic meters (65.6%)

• Industry: 103.04 billion cubic meters (18.7%)
• Domestic: 86.31 billion cubic meters (15.7%)

Water source in China:

• Inter-basin transfer: the moving of water from a watershed with a surplus (donor
basin) to a watershed suffering from a shortage (recipient basin)
•

Water supply in China:

• Uneven distribution

• China contains about 20% of the world’s population but gets only 7% of global
water resources.
• The international water scarcity threshold is 1000 m3 per capita.
• While the south, with water availability at 1100 m3 per capita, the north is
operating at only 424 m3 per capita or nearly 50% below the threshold.

• Water pollution
• Water shortage is worsening in China because of increasing water pollution and
ecosystem degradation.
• Over a third of surface water and four-fifths of shallow groundwater are heavily
polluted.
• Mortality rates for liver and stomach cancer (an epidemiological indicator of
polluted drinking water) in China are well above the world average.
• Inefficient water use
• Water productivity: a measure of water use efficiency that indicates how much
economic output is produced per cubic meter of freshwater abstracted.
• Total water productivity in China was estimated at $10 in 2014- low compared
with the world average of $15, and the average of countries in East Asia and the
Pacific ($13), North America ($31), and the European Union ($87).
• The water productivity of agriculture is the lowest of all sectors due to low
irrigation efficiency (the ratio of the amount of water consumed by the crop to the
amount of water supplied through irrigation: surface, sprinkler, or drip irrigation).
• Climate change
• Climate change, in the form of more severe events (like droughts and floods)
could further threaten the water security of China.
• Recent droughts have been experienced in southwest China (such as in Guizhou
and Yunnan provinces) and in the Guangxi Zhuang Autonomous Region, which
have historically been water abundant.
• Global warming has also led to increased water demand for agricultural
irrigation.

Water quality in China

• China has experienced unprecedented economic growth in the last few decades
but it has come at a high environmental cost.
The Yellow River Conservancy Commission found that for a third of its length,
the water was too polluted for use in agriculture and half of the water sources in
urban areas are not fit to drink.
• The Economist reported in 2015 that more than half of China's surface and
groundwater is so polluted it cannot be treated to make it drinkable and one-
quarter of it is too dangerous to be used for industrial purposes.
• It’s reported that about 40% of China's farmland relies on underground water for
irrigation, and 90% is estimated as polluted.
• The Economist adds that 60% of the groundwater beneath Chinese cities is
described as "severely polluted".
• Since 2015 China has made major efforts to improve its surface water quality
with a number of ambitious large-scale environmental policies.

Water management/measures for the future:

• Lowering water tariffs: China has implemented lower pricing or tariffs for water
compared to other countries, which helps make water more affordable for
consumers and encourages responsible water usage.
• China’s current water tariffs are still below the price needed for full financial cost
recovery. The average combined water and wastewater tariff for residential
consumers in 36 key China cities was $0.44 per cubic meter in April 2014.
• Water tariffs in the Republic of Korea, Mexico, and the Russian Federation are
about 1.5–2.0 times higher than in the PRC, while those in the European Union
countries are 10 times higher.
• Increasing water productivity: Efforts are being made to improve water
productivity in agriculture through investments in irrigation efficiency, research
funding, and promotion of best practices to maximize crop yields per unit of
water.
• Sustaining groundwater resources: The government is working on establishing a
groundwater management organization to monitor and regulate groundwater
resources, impose limits on extraction, and allocate financial resources for
sustainable management.

• Reforming water pricing: There are initiatives 措施 to reform water pricing to

reflect scarcity and create water services that address externalities, such as
supporting local governments in implementing tariff regulations and
strengthening water rights administration.
• Developing a watershed services market: Efforts are being made to develop a
market for watershed services that attract private sector participation, shifting the
government's role to focus on regulatory requirements that enable private sector
involvement.
• Building a water risk management system: A national water risk mapping and
monitoring system is being developed to increase resilience to water-related
challenges, such as floods, droughts, and pollution incidents.
• Promoting education and public awareness: Education and public awareness
programs are being promoted to enhance understanding of water security issues,
water conservation efforts, and the importance of sustainable water management
practices.

3.7 Economic Development & the Natural Environment

Resource conservation means reduction of the amounts of solid waste that are
generated, reduction of overall resource consumption, and utilization of recovered
resources.

Fast fashion is the term used to describe clothing designs that move quickly from the
catwalk to stores to take advantage of trends. The collections are often based on styles
presented at Fashion Week runway shows or worn by celebrities.

Affordable prices and instant gratification for consumers, more profits for companies,
and the democratization of stylish clothing are among fast fashion's benefits.

On the downside, fast fashion is also associated with pollution, waste, the
promulgation of a "disposable" mentality, low wages, and unsafe workplaces.
Case study of an area where economic development is taking place and

causing the environment to be at risk – The Pearl River Delta