Transcript Chapter 8 Livelihood and Economy

Chapter 8 Livelihood and Economy Primary Activities
• Classification of Economic Activity
• Subsistence Agriculture
• Commercial Agriculture
• Other Primary Activities
• Trade in primary activities
Tea Plantation, Sri Lanka 1
Copyright 2003 by Jon C Malinowski
Classification of Economic Activities & Economics
• Factors –
–
–
–
Physical environment and cultural considerations
Exploitation of resources dependent upon technology
Political decisions
Quinary Activities
Economic factors of demand
Executive Decision Maker
• Categories of Activity
Quaternary Activities
Info/Research/Management
Tertiary Activities
Retail & Wholesale/Personal & Prof. services
Secondary Activities
Manufacturing/Processing/Construction/Power Production
Primary Activities
Agriculture/Gathering/Extractive Industries
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Types of Economic systems
Subsistence Economy
goods/services for the use of producers/family
Commercial Economy
producers market goods/services,
supply-demand/competition
Planned Economy
government controlled/decided prices
• Very few
people are
members
of only
one type of
economic
system
• Systems subject to change - market/globalization
• Transportation is a key variable
• Isolation restricts the access to outside world (Fig 8.4-237)
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Isolation restricts the access to outside
world (Fig 8.4-237)
• What are the challenges of isolation for a country like
Congo?..For parts of China?
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Primary Activities: Agriculture
• Def. : growing crops and tending livestock, for sale
or subsistence. (Fig 8.5 - growing season)
• Referring back to figure 8.4 (isolation), can we
identify a problem here…?
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Primary Activities: Agriculture
• 11% of the total earth land suitable for crop farming.
• Declining trend in agriculture employment in
developing countries (Fig 8.6 – Agricultural
Employments)
• What factors may explain this trend? Implications? 6
Primary Activities: Agriculture
• Developed World Agric. Employment: <6% in most
of W. Europe, < 3% in the US….Why?
• Agriculture is still the major component of GDP in
developing countries (Fig 8.7 – Agriculture and
GDP,)
-What are the
Implications for
development?
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Agriculture
Given the arable land and climate patterns of the earth, we should be able to
feed approximately 12 Billion people. World agriculture produces 17 percent
more calories per person today than it did 30 years ago, despite a 70 percent
population increase. This is enough to provide everyone in the world with at
least 2,720 kilocalories (kcal) per person per day
• Paradox…Why do so many people go hungry?
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Agriculture
The Paradox: Identify reasons for hunger.
Rice paddies in China
http://www.confluence.org/cn/all/n26e115/pic2.jpg
Food Security in a Hungry World
Cali Drought Drought 2
Hunger Games: The price of feeding the world
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Subsistence Agriculture
• Involves nearly total self-sufficiency on the part of its
members. No exchange (or minimal, if any). food for
themselves only.
• Two types
– Extensive:
• large areas of land and minimal labor input per unit area.
Production and pop density is low.
– Intensive:
• cultivation of small landholdings through the expenditure of
great amounts of labor per unit area. Production and pop
density are both high.
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Subsistence Agriculture
(Figure 8.8 Subsistence Agriculture Areas)
Note the paradox once again…Arable land, long growing
season…subsistence activities.
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Subsistence Agriculture
Extensive or intensive?
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Extensive Subsistence Agriculture
• Nomadic herding (Figure 8.8 – Subsistence agriculture) - wandering and
controlled movement of livestock dependent on natural forage - the most
extensive type of land use system…Why?
• Sheep, goat, and camels are most common (WHY) and others such as
cattle, horses and yaks are important too.
• Nothing is wasted - Animal provides milk, cheese, meat for food; hair,
wool and skins for clothing; skin for shelter and excrement for fuel.
• Nomadic herding is declining. Social/economic/culture changes are
causing nomadic groups to alter their ways of life or disappear entirely.
• Mongolia's Nomads
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Extensive Subsistence Agriculture
• Shifting cultivation - rotating fields once soils lose fertility.
– Slash-and-Burn (or Shifting Cultivation)
– No knowledge of soil chemistry, fertilizing, or irrigation, once the soil
become infertile, they move to another parcel of land, clear the
vegetation, turn the soil and try again. 150 to 200 million people in
Africa, Middle America, tropical South America and parts of
Southeast Asia.
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Shifting cultivation/Slash-burn
Extensive subsistence…Why?
• Slash-and-burn : process of preparing low fertility soils for planting.
Burning adds minerals to the soils, typically in low population areas
• After burning, crops such as maize (corn) millet (cereal grain), rice, manioc,
yam, and sugarcane are planted .
• Slash and Burn Video Alternative Practices??
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Intertillage:
practice of mixing different seeds and seedlings in the same swidden…
Intensive or Extensive?
• reduce the risk of
disasters from crop
failure
• Increase the nutritional
balance of the local diet.
• Prevent loss of soil
moisture.
• Control of soil erosion
R:Rice
G:Groundnut
M:Maize
Y:Yam
WY:White yam
AP:Air potato
V:Bamara groundnut
Cu:Melon
Pp:Pumpkin
L:Gourds
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Slash and Burn/Swidden Agriculture
• Low pop. density much land is needed to support few
people
• Shifting Cultivation is founded on the islands of Kalimantan
(Borneo), New Guinea, and Sumatra in Indonesia, and the
uplands of SE Asia in Vietnam, Thailand, Myanmar and
Philippines, Nearly the whole of Central and West Africa away
from the coasts, Amazon basin, and large portions of Central
America
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Slash and Burn/Swidden Agriculture
• Boserup thesis (p.241)
Pop. increases necessitate increased inputs of labor and
technology to compensate for reductions in the natural yields of
swidden farming. The pop. increase forces an increased use of
tech in farming, shifting societies from extensive to intensive
subsistence agriculture.
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Intensive Subsistence Systems
• Half of the people of the world engaged in this activity
• Exchange of farm commodities
• Requires large inputs of labor,
small plots and high reliance
on fertilizers.
• Plant grain, fruit, vegetables,
and raise animals…Swine, ducks
and chickens are main meat.
Cattle used for labor and to produce fertilizers.
• Mostly in densely populated, monsoon Asia. Warm
and moist river valleys and
deltas.
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Intensive Subsistence Systems
• Planting rice shoots by hand in standing fresh water is a tedious art
Hand Planting Rice
Rice provides 60% - 80% calories to over 2.8 billion pop.
• Cooler/ drier Asia - wheat and millet
is planted.
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Intensive Subsistence Systems
• Water management is crucial to the rice production
– Rice Landscape - levees, reservoirs, canals, drainage channels, and
terraces to extend level land to valley slopes
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Urban Subsistence Farming
• Provides 1/7 of the worlds food production - mostly in
Asia, engaged in small garden plots, backyard livestock
breeding and raising fish in ponds and streams.
• In parts of the developing world, this
has reduced the incidence of adult and
child malnutrition in cities. Many rely
on this as sole income.
• Advantages- convert waste from problem to resource.
Disadvantage - diseases, water
pollution, etc.
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A.E. Article Reviews
Article 6
• 1 Risk Factors
• 2. Mapping the Menace
• 3. Climate Resilient Food
• 4. Changing The System
• 5. Markets and Models
• 6. Let’s Be Civilized
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Away from subsistence
The Green Revolution
The Power of Place: Small Farms,
Big Cities
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Origin of Green Revolution
• Started in 1960s, Philippine researchers crossed a Chinese rice with
Indonesian variety and produced IR8 rice with bigger head of grain
and stronger stem. In 1982, they produced IR36, the most widely
grown crop on Earth
– IR36-mixed from 13 parents genetic resistance against 15 pests and
growing cycle of 110 days which makes three crops per year possible.
– Charting of genome is ongoing, it will eventually increase the
production and develop the resistance to diseases and pests
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Green Revolution
• Green Revolution - trends in food production 1961-1999. Saving
an estimated one billion people from starvation. Increased calories
per person, pop with adequate food in developing countries
jumped from 55% to 80%.
• How do we explain Africa?..
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Green Revolution
• Disadvantages??
– Water: irrigation destroyed large tracts of land, groundwater
depletion, water wars,
California Water War
– For Further Investigation: Water Wars RT News/Water
• Water Wars
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Green Revolution
• Disadvantages??
– loss of traditional/subsistence farming, food production aimed at
export is more profitable, rural society destroyed, reduced variety
of crops, rural pop moved to urban
• Not all areas benefited from Green Revolution–reasons?
(belated research effort, lack of investment (Africa) great range
of growing conditions)
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Green Revolution (Disadvantages)
• “Genetic Erosion”
– Loss of genetic diversity of crop varieties , fewer than 100
species provide most of the world’s food supply.
• Is there a danger here?
– Crop diversity and food security
• Loss of domestic food availability:
– Dependency on imported food…
– vulnerable to currency exchange rates and inflation
– Dependence on imported seed stock
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Commercial Agriculture
• Definition
• 2 Facts (non-areal)
• 2 Facts (areal)
• 2 Advantages
• 2 Disadvantages
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Commercial Agriculture
• The free market and Production Control
– short supply should command an increased market price
crop or livestock mix selected by commercial farmers reflects an
assessment of market demands and prices…decisions guided by profit
motive…not necessarily by what will feed the most people.
Vertical Integration
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Commercial Agriculture
How do Governments distort Market Forces?
– Inefficiencies of Govt. price controls
–farm economy distorted while low food price is enforced
– aimed at reducing imports and /or subsidizing nationals
USDA subsidies in the United States totaled $277.3 billion
from 1995-2011….
For Further Reading:
Who gets the big U.S. farm subsidies…? Not farmers
Roll back fat farm subsidies
Subsidies Subsidies 2 EU Farmers
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Why and Where: von Thunen’s model
• intensity of land use, perishable goods are produced in land
closer to the city. High shipping and high demand
commodities found in inner rings.
• “A portion of each crop is eaten by the wheels” - observed
by von Thunen, distance between market and production site
is the most important determination of the location
• Transport gradients (8.15) - crops with highest transport cost
and market values will be grown nearest to the market.
•Transportation cost
determines what and where
we produce
• Industrial and post-industrial
economy, land use is less
predictable…Why?..Rice in Japan???
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Warm – Up
Von Thünen Model
Central City
Identify 1-6 and
Respond to the
Questions below
1.
2.
3.
3a.
3b.
4.
5.
6.
* What does VonThunen’s model attempt to show?
* Where (developed vs. developing world) is the model most applicable
Today? Explain your assertions for both the developed and developing world.
Von Thünen Model
Application of Von Thünen Model
• Geographer Lee Liu studied the spatial pattern of agriculture
production in China.
Found:
- farmers living in a village farm both lands close to the village
and far away intensively but with different methods…?
- methods varied spatially – resulting in:
* land improvement (by adding organic material) close to
WHY? village and…
* land degradation (lots of pesticides and fewer conservation
tactics) farther from village…Why less care for the land
further from the core.
Intensive Commercial Agriculture
• Characterized by high yields per unit of cultivated land
• Large amount of inputs - justified by prices of fruits,
vegetable and dairy products.
– The goal is to decrease Per unit cost
of production to increase profit
– For instance - Truck Farms
produce wide range
of vegetable and fruits with
refrigerated trucks and custom
packaging close to urban areas.
(distribution of truck farm 8.17)
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Intensive Commercial Agriculture
• Factory Farms
Livestock-grain farming
– growing grain for livestock feed.
– reducing transportation cost.
– Livestock price higher than feed, farmer convert their corn
into meat on the farm by feeding it to the livestock.
– In W. Europe, ¾ cropland is for livestock grain farm.
However, the value of its products per unit is less than that
of the truck farm. They are farther from the main markets
than are horticultural and dairy farms.
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Extensive Commercial Agriculture
• Farmland values decline westward with increasing distance from the
northeastern market of the US, but not increasing while near west coast.
Climate and environmental considerations (increasing aridity and mountain
ranges..)
• Large-scale wheat farming - requires large amount capital input. Spring
wheat (Dakotas, e Montana, S Canada) winter wheat (Kansas..) Argentina in
S hemisphere. Wheat is the grain crop in the world…effect on grain price and small producers
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Extensive Commercial Agriculture
• Livestock ranching - oriented to the urban markets of
industrialized countries. In developing countries - Typically
Confined to areas of European settlement…WHY?
– Caused destruction of tropical rain forests in Central America and
the Amazon basin due to expanded cattle ranching. (in land with
low quality soils, low pop density…requires fewer labor inputs)
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Special Crops - mostly due to climate factors
• Mediterranean agriculture - grapes, olives, oranges,
figs, vegetables and similar commodities
- needs warm temp. all year round plus summer sunshine.
Summer drought and winter rain, irrigation system is
needed. (8.21)
• Plantation Crops - foreign to the areas (8.22)
– tea in India and Sri Lanka, jute in India and
Bangladesh, rubber in Malaysia and Indonesia, cacao
in Ghana and Nigeria, can sugar in Cuba...., coffee in
Brazil and Colombia, banana in central America.
– Most plantations in coastal areas, easy for export.
• Again, focusing on reduction of per unit cost.
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Kuby Chapter 8
Activities 1&3
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Activity 3: Remote Sensing
& Agricultural Land Use Change
Figure 8.11 (p. 245)
Warm –Up
Kuby Chapter 8 Review
1. What trends did you see in act. 8.3?
2. Identify possible externalities associated
with those trends.
New trends in American Agriculture?
Will Allen Urban Agriculture
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Primary Activities: Resource Exploitation
• Gathering industries –
– fishing and forestry
• Extractive industries –
– mining and quarrying
• Renewable resources –
– materials can be consumed and then replenished quickly by natural
or by human-assisted processes. such as forest, fish, grasslands,
and animals.
– Maximum sustainable yield –
-max. rate of use that will not impair its ability to be renewed or
to maintain the same future productivity. If exceeded, renewable
will become nonrenewable.
-Nonrenewable resources –
– exist in finite amount and are not replaced by natural processes.
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Fishing - provide 19% of all animal protein in the human diet
• steady fish harvest increase except in 1998 (El Nino)
• 99% fish are from coastal wetlands, estuaries,and continental shelf. 1%
from open sea. Commercial capture fishing for market only in northern
hemisphere, tropical fish do not school and contain higher oil content, only
for local use
• Overfishing - due to the accepted view of “open seas/the commons”
"75% of the major marine fish stocks are either depleted,
overexploited or being fished at their biological limit.“
Collapse of the Cod Fishery Video
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Fishing
• Tragedy of the Commons - a open resource without collective
controls exploited to the maximum extent
The King of Sushi
• Cod
99% of the worldwide annual commercial ocean catch comes
from coastal waters, within 200 nautical miles of the
coastline. these narrow coastal fringes are both the most
productive and the most vulnerable."
"Roughly one-third of the world's coral reef systems have
been destroyed or highly degraded."
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Exclusive Economic Zones
Each coastal country has an EEZ
extending 200 miles offshore.
Legal mechanisms and investment
incentives are being implemented
to privatize and develop these
marine areas for open ocean
aquaculture and other industrial
uses. This commercial exploitation
will be beyond sub-national (state
or provincial) regulation. Used
offshore oil platforms are likely to
be recycled as anchor points for
large scale open net aquaculture.
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Fishing
• Tragedy of the Commons
- an open resource without collective controls
International Whaling Agreement
• Aquaculture - farm ponds, catfish and crayfish ponds in SE US
Aquaculture
Urban Aquaculture
Open Ocean Fish Farm
• Mariculture - coastal lagoons, shallow water
fish/shellfish
30% of worlds’
fish harvest
from aquaculture
and mariculture
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The King of Sushi
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Amazon Clear-cut
Headlines….
Amazon deforestation jumps 69% in 2012
August 31, 2012
• “Deforestation in the Brazilian Amazon increased 69 percent in the past 12 months
as high commodity prices have driven forest conversion for ranches and cropland,
according to preliminary figures released by Brazil's National Institute for Space
Research (INPE). The increase comes after three consecutive years of declining
deforestation in Brazil.”
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Forestry
• Roundwood production – 45% for industrial consumption and 55% for fuelwood and charcoal.
Developing countries rely on fuelwood and charcoal resulting in the
serious depletion of tropical forest stands. In tropical areas,
deforestation rates exceeds reforestation by 10 to 15 times.
– since 1970s, 25 to 30 million acres of tropical forestland have been
converted to agricultural land and in S and Central America additional
millions of acres been cleared for beef cattle for the N American market
– Half of roundwood production (for industrial markets) are from
US,Canada and Russia and less than 20% from developing countries
due to the transportation cost, explained by von Thunen’s model.
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Mining
• Involves the exploitation
of minerals unevenly
distributed in amounts
and concentrations
determined by past
geologic events, not by
contemporary market
demand
• Transportation costs
play a major role in
determining where lowvalue minerals will be
mined
• Depends on:
- The occurrence of the perceived
resources
- The technology to exploit them
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The End of Cheap Oil??
• Oil reserve - 1020 gbo (gigga-barrels of oil-gigga =a thousand
million) 25 gbo/yr consumption, but with 2% increase of
consumption, it won’t last 40 yrs.
…..New discoveries - 7
gbo/yr
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The End of Cheap Oil?
• Americans consume 19 million barrels/year = about 1000
gallons/person/yr,
– production=2.6 bbls in 2010. Proven reserves can only last 5 years
without import.
• Gulf of Mexico holds 15 bb of oil, high cost (Econ. And Environmental)
required to exploit.
• Oil Shale Fracking to the Rescue??? Four Level Analysis
For Thursday
Predict the Impact (Four-Level Analysis)
An American Oil Find That Holds More Than All of OPEC
By ALAN FARNHAM
Nov. 13, 2012
CBS News
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The New Oil Landscape
Four-Level Analysis
Costs and benefits/Short term and long term
• Local
State
• National
Global
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An American Oil Find That Holds More Than All
of OPEC
Four-Level Analysis
Costs and benefits/Short term and long term
• Local
State
• National
Global
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Discussion Questions
1. What are the distinguishing characteristics of the economic
systems labeled subsistence, commercial and planned? Are they
mutually exclusive, or can they coexist within a single political unit?
Give areal examples.
2. What are some of the ecological consequences of the different
forms of extensive subsistence land use? In what world regions are
such systems found? What, in your opinion, are the prospects for
these land uses and for the way of life they embody
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Key Terms w/areal specificity
Economic geography
Definition
Explain with examples
Primary activity
Definition
Explain with examples
Secondary activity
Definition
Explain with examples
Tertiary activity
Definition
Explain with examples
technology
Planned
economy
Definition
Definition
Explain with examples
Explain with examples
Commercial
economy
Definition
Explain with examples
Market economy
Definition
Explain with examples
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Discussion Questions
3. How is intensive subsistence agriculture distinguished from
extensive subsistence cropping? Why, in your opinion, have such
different land-use forms developed in different areas of the warm,
moist tropics?
4. Describe the Boserup thesis.
a. Do you think it is a valid model for predicting the shift you
described in “a” above?
b. What other factors might bring about such a shift?
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Key Terms w/areal specificity
Quarternary
activity
Definition
Explain with examples
Quinary
activity
Definition
Explain with examples
Subsistence
economy
Definition
Explain with examples
agriculture
Definition
Explain with examples
Intensive
Agriculture
Definition
Explain with examples
Nomadic herding
Definition
Explain with examples
Shifting
cultivation
Definition
Explain with examples
Extensive
agriculture
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Discussion Questions
5. Briefly summarize the assumptions and dictates of von Thunen’s
agricultural model. How might the land use patterns predicted by the
model be altered by:
a) an increase in the market price of a single crop?
b) A decrease in the transportation costs of one crop but not of all crops?
6. What is the basic distinction between a renewable and non-renewable
resource? Under what circumstances might the distinction between the two
be blurred, or obliterated? Can you provide an example of such a situation
today in the U.S?
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Key Terms w/areal specificity
Boserup Thesis
Definition
Explain with examples
Green Revolution
Definition
Explain with examples
Von Thunen
Model
Definition
Explain with examples
Truck farm
Definition
Explain with examples
Plantation
Definition
Explain with examples
resource
Definition
Explain with examples
Natural resource
Definition
Explain with examples
Renewable resource
Definition
Explain with examples
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Discussion Questions
7. a) What economic and ecological problems can you cite that do or might affect the
viability and productivity of the gathering industries of forestry and fishing?
b) What is meant by the tragedy of the commons? How is that concept related to the
problems you discerned in “a” above?
8. Mineral fuels
What are the mineral fuels?
Why have the mineral fuels been so important in economic development?
What are the prospects for their continued availability
What economic, environmental and social consequences might you anticipate if the
price of mineral fuels should i) double? ii) be cut in half?
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Key Terms w/areal specificity
Non-renewable
Resource
Definition
Explain with examples
Extractive Industry
Definition
Explain with examples
Gathering Industry
Definition
Explain with examples
Maximum sustainable
Yield
Definition
Explain with examples
Tragedy of the
Commons
Definition
Explain with examples
Aqua-culture
Defi nition
Explain with examples
Definition
Explain with examples
Useable reserves
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