Class 4a: Natural Resources and the EconomyEconomic geographyEconomic geographyPrimary economic activityFisheriesForestryTropical forestsTropical forestsPrimary economic activityResource-based economiesExample: Antofagasta, ChileExample: Antofagasta, ChileAgricultureSubsistence agricultureCommercial agricultureAgribusinessVon Thünen’s land use modelVon Thünen’s land use modelClass 4a: Natural Resources and the Economy• Primary economic activity• Resource-based economies (Gabon)• Agriculture and trade (Chile)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?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 servicesPrimary economic activity• “Gathering” industries–Fishing–Forestry• Commercial vs. subsistence• Potentially renewable resources•Maximum sustainable yieldFisheries• Protein for 1 billion people• Inland 6%, aquaculture 23%, oceans 71%• Tragedy of the commonsForestry• Commercial use or fuelwood• Coniferous (softwood) for paper, lumber• Deciduous (hardwood) for furniture, etc.• Tropical hardwood for fuelwood, furniture– And clearing landTropical 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%Tropical forests• Forests as carbon sink• Rain forests and biodiversity– Costa Rica birds = North America– 72 species of ant on Peruvian tree• Medical resources• EcotourismPrimary economic activity• “Extractive” industries– Mining– Quarrying (gravel, sand)• Nonrenewable resources• Huge capital investment: then what?Resource-based economies• Multiple scales (from countries to towns)• Dependent on one commodity• Volatile commodity prices• Boom-and-bust cycles• Need value-added activityExample: Antofagasta, Chile• Founded in 19thcentury for nitrate mining• Wealth led to Chile’s first banks• Chemical substitutes by 1930s• Port for BoliviaExample: 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-addedAgriculture• About 1/3 of Earth’s land• Subsistence, traditional, commercialSubsistence agriculture• Your responsibility!• Extensive vs. intensive• Nomadic herding, shifting cultivation, intensive subsistence• Where and whyCommercial agriculture• Maximizing profit, not food security• Specialization by location• Off-farm sales• Interdependence of producers and consumersAgribusiness• Focus on minimizing risk– Producers want standard products– Farmers want guaranteed markets• Contracts between farmers and corporations• Political pressure for subsidies• Political pressure on healthVon 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 costsVon 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
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