Class4a
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Transcript of Class4a
![Page 1: Class4a](https://reader035.fdocuments.in/reader035/viewer/2022070320/558627dcd8b42a2b308b49de/html5/thumbnails/1.jpg)
Class 4a: Natural Resources and the Economy
• Primary economic activity
• Resource-based economies (Gabon)
• Agriculture and trade (Chile)
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Economic geography
• How do people earn a living?
– Physical environment
– Cultural conditions
– Technology
– Politics/economic system
• How does that vary by place?
• How does it connect places?
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Economic geography
• Primary economic activity
– Closest contact with natural resources
– Generally, lowest income
• Secondary: value added (manufacturing)
• Tertiary: services for primary or secondary
• Quaternary: information-based services
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Primary economic activity
• “Gathering” industries
– Fishing
– Forestry
• Commercial vs. subsistence
• Potentially renewable resources
• Maximum sustainable yield
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Fisheries
• Protein for 1 billion people
• Inland 6%, aquaculture 23%, oceans 71%
• Tragedy of the commons
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Forestry
• Commercial use or fuelwood
• Coniferous (softwood) for paper, lumber
• Deciduous (hardwood) for furniture, etc.
• Tropical hardwood for fuelwood, furniture
– And clearing land
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Tropical forests
• Land and fuel under pressure from growing population
• Beef more profitable than timber
• Gone: Central America 70%, Asia 50%, Africa 50%, South America 40%
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Tropical forests
• Forests as carbon sink
• Rain forests and biodiversity
– Costa Rica birds = North America
– 72 species of ant on Peruvian tree
• Medical resources
• Ecotourism
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Primary economic activity
• “Extractive” industries
– Mining
– Quarrying (gravel, sand)
• Nonrenewable resources
• Huge capital investment: then what?
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Resource-based economies
• Multiple scales (from countries to towns)
• Dependent on one commodity
• Volatile commodity prices
• Boom-and-bust cycles
• Need value-added activity
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Example: Antofagasta, Chile
• Founded in 19th century for nitrate mining
• Wealth led to Chile’s first banks
• Chemical substitutes by 1930s
• Port for Bolivia
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Example: Antofagasta, Chile
• New technology made copper mining possible
• Nationalized in 1970s
• 1990 boom when reopened to private investment
• Today: 9% of GDP, 33% of world copper
• But: foreign investment, no value-added
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Agriculture
• About 1/3 of Earth’s land
• Subsistence, traditional, commercial
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Subsistence agriculture
• Your responsibility!
• Extensive vs. intensive
• Nomadic herding, shifting cultivation, intensive subsistence
• Where and why
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Commercial agriculture
• Maximizing profit, not food security
• Specialization by location
• Off-farm sales
• Interdependence of producers and consumers
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Agribusiness
• Focus on minimizing risk
– Producers want standard products
– Farmers want guaranteed markets
• Contracts between farmers and corporations
• Political pressure for subsidies
• Political pressure on health
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Von Thünen’s land use model
• German landowner in 1800s
• Noticed pattern of agricultural land use
• Three assumptions:
– Isolated city (no trade)
– Surrounded by homogenous landscape
– All that matters is transport costs
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Distance from market
Lan
d va
lue
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Distance from market
Lan
d va
lue
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Distance from market
Lan
d va
lue
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Distance from market
Lan
d va
lue
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Distance from market
Lan
d va
lue
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Distance from market
Lan
d va
lue
![Page 30: Class4a](https://reader035.fdocuments.in/reader035/viewer/2022070320/558627dcd8b42a2b308b49de/html5/thumbnails/30.jpg)
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Von Thünen’s land use model
• So what?
• Connections between city and country
• General patterns of agriculture
• Can be applied to urban settings, too
• Decreased transport costs make the pattern larger
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