Chapter 4 Resources and Environment Learning Objectives: World resources: nature, distribution & limits Global food problems: their nature & extent, difficulties in their solution Strategic minerals: distribution & supply The energy crisis: causes, consequences and options Nature and causes of environmental degradation Growth-oriented versus balance-oriented lifestyles

Thinking about the organization of this textbook First, a broad discussion of resources Then, a detour into theory (finally) Followed by a treatment of industry, progressing from activities absorbing natural resources through service industries Cast in space – in cities, and in systems of trade First, though, let us think about the broad sectors of economic activity

The Economic System: An Industry Perspective (Fig 8.2) Primary: agriculture, fishing, forestry, mining Secondary: Manufacturing, Construction & Utilities Tertiary: Transportation, Trade, Business Services, Consumer Services, Public Services Quaternary  Elements of tertiary except the channel of distribution (trade, transport)

Key Lines of Service Employment

The Economic System: A structural perspective Primary Activities: Agriculture Mining Forestry Fishing Secondary Activities: Manufacturing Construction Utilities Tertiary Activities: Trade Transport Consumer Services Producer Services Public Services Capital Stock HOUSEHOLDSHOUSEHOLDS Demand by All Sectors Indicates Transactions Within Industry Group

The Economic System: A structural perspective (Chapters) Primary Activities: Agriculture Mining Forestry Fishing Secondary Activities: Manufacturing Construction Utilities Tertiary Activities: Trade Transport Consumer Services Producer Services Public Services Capital Stock HOUSEHOLDSHOUSEHOLDS Demand by All Sectors Indicates Transactions Within Industry Group Ch 4,6 Chapter 5 Ch 7 Ch 8, 9 Ch 10: Cities Ch : Trade Ch 11

Foundational Issues and Resources and Population The constant specter of Malthus’ warning-Katrina & oil Resource optimists vs. resource pessimists The text contrasts growth-oriented lifestyle with balance- oriented lifestyle (?sustainable development?) –Patterns of growth with benefits to all, not just elites –Carrying capacity under particular technologies Alternatives to the current Western energy & material intensive production systems, based on (1) sun-based organic agriculture, (2) renewable energy sources, (3) greater reliance on local raw materials & labor intensive technologies, and (4) decentralized production to increase local self-reliance and reduce transport activity Contrary to current institutions

Types of Resources and Their Limits ?Cost Of Use? Entire Stock “Natural resources have meaning only in terms of historically-specific Technical and cultural appraisals of nature….” p. 109 For a specific Time period Nonrenewable Vs. renewable Resources. Renewable Stocks (soil) Vs. renewable Flows (water) Maximum Sustained yield

Food and Population Globally food production has kept pace with population. Africa with major food supply problems; elsewhere problems of equity In food supply distributions and nutritional quality. Obesity

Food Supply Issues Urbanization & food supply patterns Poverty – esp. in Africa & other LDC’s. Chapter 14 revisits this topic Maldistribution – problems of transport, marketing and storage, mismatch between where grain supplies are produced and needed Civil Unrest and War Environmental Decline – desertification & deforestation Government policy and debt

Increasing Food Production Expanding Cultivated Areas (21%) –Theoretically about 2X current area, but major environmental issues (desertification, deforestation, related climate change) Raising the Productivity of Existing Cropland (55% increased yields, plus 13% greater cropping intensity) –Green Revolution; inequitable pattern. Figure 4.6 Other factors: 11% - aquaculture, development of high-protein cereals, more efficient use of certain foods –Concerns about genetically engineered seed stocks –How to institutionalize more sustainable agriculture?

Countries Benefiting from the Green Revolution

Fig 4.7 Artificial Fertilizer Use

Pressure on Ocean Resources & Aquaculture Tragedy of the Commons Natural Cycles On-shore pollution Natural disasters (Katrina And Gulf Coast Oysters) Side effects of aquaculture Complex regulatory issues