Notes On Economic Activities
Notes On Economic Activities
EconomicGeographyisthestudyofhowpeopleearn
theirliving,howlivelihoodsystemsvarybyareaandhow
economicactivitiesarespatiallyinterrelatedandlinked.
Economicactivityistheactivityofmaking,providing,
purchasing,orsellinggoodsorservices.Anyaction
thatinvolvesproducing,distributing,orconsuming
productsorservicesisaneconomicactivity.
Economicactivitiesexistatalllevelswithinasociety.
Additionally,anyactivitiesinvolvingmoneyorthe
exchangeofproductsorservicesareeconomic
activities.Forinstance,runningasmallbusinessisa
greatexampleofeconomicactivityandoneyoucan
learnmoreaboutatM ultipleStreams.org.
FACTORSTHATCONTROLDISTRIBUTIONOF
ECONOMICACTIVITIES
1.ThePhysicalEnvironment:Manyproduction
activitiesarerootedinthelimitssetbythephysical
environment.Forexampleloggingisonlypossibleina
forestedregion.Theunequaldistributionofminerals
makesminingonlypossibleinareaswherespecific
mineralsoccur.
2.CulturalConsiderations:Economicactivityor
productionofspecificgoodsissometimesdictatedby
culturalconsiderations.Forexample,culturallybased
foodpreferences,ratherthanenvironmentallimitations
maydictatethechoiceofacroporalivestockfarm.
MaizeisapreferredgraininAfrica,RiceinAsia,and
WheatforNorthAmericans.Pigsarenotrearedin
Muslimcountries
3.TechnologicalAdvancement:Thetechnological
advancementofagroupofpeopleaffectstheirabilityto
recognizeresourcesandexploitthem.Highlyadvanced
technologiesmakepossiblefarmingindryareassuchas
deserts.
4.PoliticalDecisions:Decisionsmadebyacountry's
rulers,congressmen,andleadersmaycausesome
economicactivitiestobelocatedincertainareas.The
governmentcaninfluencesuchlocationsthrough
subsidies,taxesandprotectivetariffs.
5.EconomicFactors:Thedemandforcertaingoods
mayattractcapitalandentrepreneurshipandstimulate
productionforthegoodsinspecificregions.
CATEGORIESOFECONOMICACTIVITY
1.PrimaryEconomicActivities:Theseeconomic
activitiesaredirectlytiedtotheextractionresourcesof
theearth.Sucheconomicactivitiesoccuratthe
beginningoftheproductioncyclewherepeoplelivein
closecontactwiththeresourcesoftheland.Such
primaryeconomicactivitiesproducebasicfoodstuff
andrawmaterialsforindustryandmayinclude;
agriculture,huntingandgathering,pastoralfarming,
cropcultivation,forestry,mining,loggingandfishing
2.SecondaryEconomicActivities:Theseeconomic
activitiesaddvaluetotherawmaterialsbychanging
theirform,orcombiningthemintousefulandhence
morevaluablecommodity.Examplesare:steelmaking
fromacombinationofminerals,Milkproductionfrom
pastoralfarming,textileproductionfromcotton
farming,furnitureproductionfromloggingetc.,
Manufacturingandprocessingindustriesareincludedin
thisphaseoftheproductionprocess.
3.TertiaryEconomicActivities:Consistofthose
businessesandlaborspecializationthatprovideservices
tothegeneralcommunity.Theyincludeprofessionals
suchasteachers&professors,lawyers,medical
officers,clericalandpersonnelservices.Othersinclude
professionssuchaspostalservicesandmusic.
4.QuaternaryEconomicActivities:Economic
Activitiescomposedentirelyofservicesrenderedby
white-collarprofessionalsworkingonmanagementand
informationprocessinganddisseminating.
TYPESOFECONOMICSYSTEMS
An economic system refers to the means
or
structures
in
society within which decisions about what to produce,
how, and
when
to
produce goods and services
and
allocate
them are made and implemented. The four main
economicsystemsare:
1.TraditionalSystems
2.CapitalistorCommercialSystems
3.SocialistorCentrallyPlannedSystems,and…
4.MixedEconomicSystems
There are no
pure economic systems in
the
world for none
of the systems exist in isolation in an increasingly
interdependentworld.
1)TraditionalEconomicSystems:
An economic system under which people produce just
enough to feed
their households with
very
little
goods or
services left for sale or exchange in the market.
Production is geared towards subsistence and basic
survival. Market and money are of little importance for
trade is mainly by a barter system (direct exchange of
goods and services. Several traditional systems are
today
replacedbymarketsystems.
2)CapitalistorMarketSystems:
Under market capitalist systems, decisions about what to
produce and how to allocate resources are influenced by
interactions of price, supply and demand for goods.
Demand for a commodity tends to fall when the price
rises and falls when price drops. Conversely, supply for
the commodity will increase when the price rises and
decrease when the price falls. The capitalist system
encourages competition and allows for increased
production. There are therefore externalities or
environmental side
effects
such as
air
and
water
pollution
thatresultfrommarketoperations.
3)SocialistorCentrallyPlannedEconomicSystems:
Under the centrally planned economies, decisions about
what commodity to produce, how, and where to
produce
and distribute the products are made by a central
government rather than individuals in a market. Such
command systems exist in socialist countries such as
the
formerSovietUnion,CubaandChina.
4)MixedEconomicSystems:
Mixedeconomicsystemscombineelementsofmarket
andcentrallyplannedeconomies.Itiscurrentlythemost
commoneconomicsystemformanycountries.Inthe
mixedsystems,governmentsoftenintervenetomodify
themarketeconomy.Forexample,governmentsintervene
topreventmonopoliesandensurefreecompetition,
influencepricesofagriculturalproductsratherthanleave
themtobeinfluencedbymarketforces.Governmentmay
alsoofferincentives(taxrelief,grants,exemptionsor
penalties)toencourageparticularactivities(e.g.tree
planting).
AGRICULTURE:
Agricultureinvolvesthedeliberatehumaneffortto
modifyaportionoftheearth'ssurfacethroughcultivation
ofcropsandtherearingoflivestockforsustenanceorfor
economicgain.
PlantsandAnimalsthatserveasFood.
Biologists estimate that even though the earth has about
30,000 plant species with parts that people can eat, only
15 plants and 8 animal species supply 90% of
our food.
FOUR CROPS, namely - Wheat, Rice,
Corn and Potato
- make up more of the world's food production than all
other crops combined. All the
four
crops
and
most of our
other food crops are ANNUALS, whose seeds must be
replantedeachyear.
Two out of
three
of
the world's people survive on grains
(mainly rice, wheat and corn) and as incomes of people
rise, they consume more grains but now indirectly in
the
form of meat (especially beef, pork, and chicken, and
milk, cheese, eggs, and other products of grain-eating
domesticatedlivestock).
TypesofSubsistenceAgricultureintheTropics
(DevelopingCountries)
1. Traditional Subsistence Agriculture: Consists of
numerous forms of shifting cultivation in tropical
forests and nomadic herding practiced mainly in
Developing countries. It is a form of agriculture in
which only enough crops and
livestock are
produced to
meet the food requirements of the family. In good
years, there may be a surplus to sell and put aside for
hard times. Subsistence farmers primarily use human
laboranddraftanimals.
2. Traditional Intensive Agriculture: In this type of
agriculture also practiced in developing countries,
farmers increase their inputs of human labor, fertilizer
and water to reap a higher yield per area of cultivated
land to produce enough to feed their families and sell
thesurplus.
3. Plantation Agriculture: A form of industrialized
agriculture found primarily in developing countries in
the tropics. It
is
a permanent agriculture in
which cash
crops such as banana, coffee, tea and cocoa are
cultivatedandharvestedforsaleindevelopedcountries.
PastoralNomadism:
A form of
subsidence agriculture based on
the
herding of
domesticated animals. It
is
adapted to
dry
climates where
intensivesubsistenceagricultureisdifficultorimpossible.
Pastoral Nomads live in the arid and semi-arid belts of
North Africa, Middle East and
parts of
Central Asia. The
Bedouins of Saudi Arabia and Maasai of Kenya are
examples of nomadic groups. Some pastoralists practice
Transhumance which is
a seasonal migration of livestock
between mountains and lowland pastures in search of
greenpasturefollowingchangesinclimate.
AgriculturalpracticesinDevelopingCountries:
1. INTER PLANTING; is
the
simultaneous cultivation of
several crops on the same crop of land. Common
inter-planting strategies practiced in
developing countries
includethefollowing:
Ÿ Polyvarietal cultivation: a plot of land is
planted
withseveralvarietiesofthesamecrop.
Ÿ Intercropping: two or more different crops are
simultaneously planted on the same crop of land.
(Merits include- pest control, self sufficiency, full use
offertilizersandnutrients).
Ÿ Agroforestry or Alley Cropping: crops and
trees
are planted together. For example, a grain or legume
can be planted around fruit-bearing orchard trees or
in
rows between fast-growing trees that can be used for
fuelwood.
Ÿ Polyculture:
A more complex form of
intercropping
in which many different plants maturing at various
times are planted together. If cultivated properly, such
farms can
provide food, fuel, fertilizers and
meet other
foodneedsoffarmers.
Ÿ MeritsofthePolyculturetypeofFarmingare:
4.Large
farm
sizes usually
larger hectares
(US farms
an
averageof187hectares)
5.Heavyuseofmachineryandchemicalfertilizers.
6.Integration
with
other
Businesses (food
production is
integratedintoalargefoodproductionindustry)
TheGreenRevolutionandFoodProduction:
Between 1950 and 1970, farmers in developed countries
engaged in agricultural practices that resulted in an
increaseinglobalfoodproduction.Theprocessinvolves:
a.Developing
and
planting
monocultures of
selectively
bred or genetically engineered high-yield varieties of
keycropssuchasrice,wheatandcorn.
b. Applying fertilizer, water and insecticides on crops
toproducehighyields
c. Increasing the intensity and frequency of cropping.
The green revolution dramatically increased crop
yieldsinmanydevelopedcountries.
The Green revolution failed to improve food
production in many developing countries because of
thefollowing:
a. Depends
mainly on
fertile
soils
that
are
generally not
availableintropicalareasoftheworld.
b. The green revolution depends
heavily on
capital
for
machinery, fossil-fuel energy, fertilizer, irrigation and
pesticideswhichmanyfarmersdonothave
c. To sustain continuous production, the green
revolution requires research into local crops for
development of high-yielding and disease resistant
varietiesofcrops.
d.More
often, new
varieties of
crops (hybrid types)
that
get
produced outside
the
crops forming the
main diet
of
the people may be neglected and not eaten by local
people.
FOODPRODUCTIONINTHEUNITEDSTATES
Since 1940, US farmers have more than doubled crop
production without cultivating more land. This has been
the result of industrialized agriculture using
green-revolution techniques in a favorable climate.
Farming has become agribusiness as big companies and
havetakencontrolofmostUSfoodproduction.
Between 1880 and 1995, the percentage of
US residents
living on farms dropped from 44% to 1.8%. By 1997,
only about 650,000 Americans were full time farmers.
However from growing and processing food to
distributing and selling it engages about 9% of the total
US population. In terms of
total
annual sales, agriculture
is the biggest industry in the United States - bigger than
automotive, steel and housing industries - generating
about 18% of the country's GNP and 19% of all jobs.
US farms with
about
0.3% of
the
world's farm labor force
produced about 25% of the world's food and half of the
world's grains exports. US is
the
world's largest producer
of poultry, and the third largest producer of pigs, (after
ChinaandtheEEC).
ProblemsFacingAmericanFarmers:
1. Buckshot
Urbanization: suburban homes, shopping
centers, factories and highways have taken up much
prime farmland. New England has
lost
about 50% of
its
best acreage. Florida could loose all of
its
high quality
farmlandbytheyear2000.
2. Soil
Erosion: Soil erosion has destroyed or seriously
impaired about 60 million hectares (150 million acres)
about 15% of the nations total cropland area. Erosion
losses are estimated between 22-29 tons per hectare (9
and12tonsanacre)peryear.
3. High Fuel Costs: Modern American agriculture
depends upon huge inputs of energy derived from fossil
fuelssuchasoilandnaturalgas.
4. Limited Water Supplies: Water available for
irrigation will
sharply fall in the near future because of
declining groundwater supplies and competing
demands of expanding urban population and industrial
development.
5.Salinization:Because
of poor drainage and improper
farm practices some irrigated farms in California have
been rendered impoverished by salinization. The salt
is
deposited when irrigated water evaporates from poorly
drainedsoil.
6. High Fertilizer Costs: American agriculture is
heavily dependent upon the use of synthetic fertilizers,
the
cost of
which is
rising. The Fertilizer is
also causing
groundwaterpollution.
7. Harmful effects of Pesticides: The intensive
application of pesticides to crops has resulted in soil
contamination. Some of these pesticides affect
nitrification, a process by which soil bacteria convert
nitrogentoaformusablebyplants.
8. Soil
Compacting: Continued intensive use
of heavy
machinery such as tractors and harvesters on soils are
causingthemtobecompacted.