Economic Development

Economic Development

1. Energy

   • five main types
     • oil
     • coal
     • natural gas
     • hydroelectricity
       • negatives
         • large dams + power plants can have negative visual impact on environment
         • obstruction of river for aquatic life
         • deterioration in water quality
         • large areas of land need to be flooded to form the reservoir behind the dam
         • submerging large forests without prior clearance can release significant quantities of methane, greenhouse gas
     • nuclear energy
       • positives
         • zero greenhouse gases
         • reduced reliance on imported fossil fuels
           • reduces energy security – prevents geopolitical tension as they rely on their own sources
         • not as valuable to fuel price fluctuations
           • plentiful in supply
           • lasts for abt. 500 years
         • large amounts of energy is produced
       • negatives
         • power plant accidents
           • devastating effects
         • can be mishandled for terrorist use
           • countries could put in use for weaponry
         • high construction costs
           • approx. $6.3B per power plant
         • radioactive waste hard to dispose of
         • increase in types of cancer
   • renewables
     • countries are eager to harness renewable energy resources to:
       • reduce reliance on dwindling domestic fossil fuel resources
       • lower reliance on costly fuel imports
       • improve energy security
       • cut greenhouse emissions
     • wind power
       • generates significant amount of energy
       • can be harnessed to a reasonable degree in most parts of the world
       • turbines could blight landscape and housings, significant impact on housing values
       • turbines can kill birds
       • capacity of turbines might not embody up for amount of energy
       • clean fuel
     • biofuels
       • reduces amount of oil needed to consume
       • produced where there is sufficient crop growth, helping energy security
       • large amounts of crops needed leads to shortage of food
         • adds to global food shortage
       • large amounts of farming resources needed
       • manufacturing process requires significant amounts of energy, creating greenhouse gas emissions
       • less energy output than normal fuels
     • geothermal
       • extremely low environmental impact
       • geothermal plants occupy small land areas
       • not dependent on weather conditions
       • low maintenance costs
       • only few locations worldwide where significant amounts of energy can be generated
       • locations are far from where energy is used
       • installation costs of plant + piping are relatively high
     • solar
       • completely renewable
       • no noise or direct pollution during electricity generation
       • limited maintenance
         • costs reduce over time
       • can be used in remote areas where its too expensive to extend electricity grid
       • high costs of plants
       • very dependent on weather
         • cant be harnessed during storms/cloud/night
       • many countries have low annual hours of sunshine
       • large areas of land required
     • tidal/wave power
       • more predictable than solar/wind
       • infrastructure is less obstructive
       • potential negative impacts on marine life populations
         • also on tides on coasts
       • not so dependable as fossil fuels
       • costly

2. Tourism

   • reasons for worldwide growth in tourisms
     • increase in average number of days in paid leave
       • no fear of losing weekly income
     • more people working in the secondary and tertiary sectors + more women are working
       • pay is generally higher - more money to spend on holidays
       • higher disposable income
     • improved transport making even remote locations accessible
     • budget airlines makes for cheap economy short haul flights to many destinations - more available within middle income range due to increase in airline competition lowering the cost of flying all over the world
     • people are more aware of destinations due to mass advertising
       • raised expectations of international travel and are promoted everywhere
       • e,g travel programs and documentaries
       • internet booking makes it easier
     • tourism packets make it easier and more tempting for people to by as they feel its easier to navigate with them
       • retail reward schemes encourage and make easier for people to travel
     • more countries are softening their border restrictions on visas and passports, helping tourists easily and safely access a wide range of countries
     • government backing up major international events e.g Olympics
   • growth and decline in tourism in LEDCs
     • growth
       • tourists become more adventurous and inquisitive
         • bored of traditional locations
       • exchange rates makes tourism there more affordable and favorable
       • ease of booking and awareness has increased
         • english, the internet and credit cards have made travelling easier
       • transport became more effective and accessible
       • less security worries in LEDCs as it becomes politically stable
     • decline
       • war and conflicts
       • susceptibility to natural disasters
         • LEDCs tend to be directly above tectonic plates making them susceptible to earthquakes etc.
         • weaker defences and alert systems towards these disasters
       • terrorism or fear of crimes
       • economic problems e.g recessions
         • e.g financial crisis in 2008
       • disease and pandemics
         • e.g MERS in Saudi Arabia in 2012
   • impacts of tourism
     • positive
       • locals can perform traditional dances, music etc. to tourists, making them aware of their cultures and keeping it alive through such performances
       • tourists pay to see museums and historic sites, protecting heritage buildings and artefacts
       • improve country's reputation, creating cross cultural links
       • direct and indirect jobs are created for local workers in hotels, restaurants etc.
         • direct - come in straight contact with tourists
         • indirect - jobs that help support tourism e.g hotel construction worker
         • encourages local people to receive education and training in order to work in tourist sectors and improve linguistic skills - increase in literacy rate
       • tax revenues for government increases as workers, companies and tourists to pay taxes
         • money is then invested to improve services and infrastructure for communities
       • people learn new skills that can be then transferred to other parts of the economy
       • new equipment , technology and infrastructure introduced to the country for tourists can be used by local businesses and people e.g trains, roads, electricity, sewage etc.
       • national parks (conservation areas) are more likely to be created to protect the environment while showcasing it to the tourists
         • animals obtain economic value if people are willing to pay to see them: if the value of animals is greater alive than dead, people would be more willing to save them
       • governments can use tax revenues to improve the environment e.g invest in renewable energy, increase public transport, develop recycling schemes etc.
     • negative
       • increase in tourists may cause greater road congestion, increasing air and noise pollution and cause delays
       • causing certain crimes, like theft and alcohol fueled violence
       • local people may become more materialistic and 'westernised' with the arrival of international tourists - losing touch with traditional values
       • causes racial tension between tourists and locals
       • local workers often get low paid jobs e.g cleaner, receptionist, etc. senior positions may go to workers brought in from overseas
         • many jobs are only seasonal so workers are only paid half of the year e.g the ski season is less than 6 months
       • there are economic leakages (loss of money overseas) because many of the tourist companies are TNCs and profits are transferred home to MEDCs
       • increased demand for products and services may cause price inflation (food, house and transport costs rise)
       • building and road developments destroy green spaces (urban sprawl)
       • visual pollution (natural scenery obscured)
       • water use becomes unsustainable as tourists demand swimming pools, showers and toilets which locals may not have
       • noise + light pollution created by tourist developments may also interfere with animals
       • climate change (carbon emissions) are high due to flights, road transport and energy consumption
   • Doxey's index of irritation
     • euphoria
       • enthusiasm for tourist development
       • mutual feeling of satisfaction
       • opportunities for local participations
       • flows of money and interesting contacts
     • apathy
       • industry expands
       • tourists taken for granted
       • more interest in profit making
       • personal contact becomes more formal
     • irritation
       • industry nearing saturation point
       • expansion of facilities required
       • encroachment into local way of life
     • antagonism
       • irritation becomes more overt
       • tourists are seen as harbingers of all that is bad
       • mutual politeness gives way to antagonism
     • final level
       • environment has changed irreversibly
       • resource base has changed and the type of tourist has also changed
       • if the destination is large enough to cope with mass tourism it will continue to thrive

3. Water

   • the global water crisis
     • 40% of population (80 countries) lack of proper water supplies
     • water demand doubles every 20 years
     • in places w/ stable water supply, water is mismanaged and polluted on grand scales
     • paltry supplies available are often polluted in poorer countries
   • methods of water supply
     • dams and reservoirs
       • barrier that holds back water
       • can be used to save, manage and prevent the flow of excess water into specific regions
       • can be used to generate hydroelectricity and provide road bridges across valleys
       • can carry large capacities of water
         • e.g volume of water held behind the Kariba Dam in Zimbabwe is 180.6km3
         • construction of dams declined since 1990s-1970s due to best sites already being in use or are protected by environmental legislation
           • alternate solution - increasing capacities of existing reservoirs by extending the height of the dam
             • e.g California is adding 36m to their 67m tall San Vicente Dam, allowing double the current capacity of the reservoir
     • water supply - supply water form its source to the point of usage
     • wells and boreholes
       • holes tapping into aquifers gaining access to groundwater
       • aquifers - provides half the world's drinking water, 40% of the water used in the industry and up to 30 % of irrigation water
       • groundwater can be used directly or stored to build up a considerable surface supply
       • main source of water in oasis settlements such as Sahara desert in North Africa
     • desalination
       • widespread use in Middle East as other forms of water supply are extremely scarce
       • distill water by boiling or reverse osmosis
       • advantages
         • doesn't affect water levels in rivers
         • controversial plans for reservoirs can be shelved
       • disadvantages
         • expensive - not a viable solution to poorer countries
     • cloud seeding
       • used over an agricultural area where rainfall is required immediately or for snowpack augmentation i.e putting more snow to allow more water from snowmelt in spring
       • silver iodide is sprayed over a propane flame which rises into the clouds, causing the cloud moisture to freeze and create ice crystals, which the falls
     • other methods
       • forest water management
       • stored underground to prevent evaporation e.g mines
       • water pricing and granting of licenses to use certain amount of water from the public supply are now commonplace measures for large scale users
       • households are encouraged to use water butts and trapping rainwater, thus taking less from the public supply
         • e.g grey water for gardening
   • water shortages
     • the future
       • world's population is increasing
       • increasing affluence is inflating per capita demand for water
       • increasing demand for biofuel – process has heavy demand for water
       • climate change increasing aridity and reducing supply in certain regions
         • many water sources are threatened by various forms of pollution
     • 110,000km3 of precipitation lands onto Earth's land surface each year but:
       • 30% of the world's population live in area receiving only 25% of the global annual precipitation
       • arid regions of the world cover 40% of the world's land area, yet only receive 2% of global precipitation
       • the Congo river and its tributaries account for 30% of Africa's annual runoff in an area containing 10% of Africa's population
     • water scarcity
       • physical
         • physical access to water is limited
           • demand outstrips a region's ability to provide the water needed by the population
         • arid and semi arid regions of the world as temperatures and evapotranspiration rates are high yet precipitation is low
       • economic
         • when a population does not have the necessary monetary means to utilise an adequate source of water
         • some reasons include political and ethnic conflict
       • threatens to put world food supplies in jeopardy, limit economic and social development and create serious conflicts between neighbouring drainage basin countries
         • at any one time half the world's hospital beds are occupied by patients suffering from water-borne diseases
         • over one third of the world's population has no access to sanitation facilities
         • in developing countries, around 80% of illnesses are linked to poor sanitation and water conditions
         • one out of four deaths of children under the age of 5 worldwide is due to a water related disease
         • common for water collectors, usually women or girls, to walk several km everyday to fetch water. once filled, pots and jerry cans can weigh as much as 20kg
       • water stress - when a country's water supply is below 1700m cubed per person per year
         • when supply falls to below 1000m3 of water per person per year, country will face water scarcity for part/whole year
   • water management
     • higher prices would
       • encourage systematic re-use of grey water
       • spur investment in recycling and reclamation
       • lead to greater investment in the reduction of water losses
     • urban sanitisation are heavy users of water
       • can be reduced by adopting dry systems
         • eg dry composing toilets w urine seperation systems