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Geography (Optional) 2021

PART: 18
ECONOMIC GEOGRAPHY
By Himanshu Sharma
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ECONOMIC GEOGRAPHY
1. World Economic Development: subsistence tillage with rice dominant and
Measurement and Problems without rice in the crop association.
1999: How far do the patterns of economic 2008: Discuss the views of von Thunen on
development and those of human agricultural location.
development correspond with each other 2009: (b) Provide a geographical account of
in the world? Illustrate your answer with global production and distribution of food.
examples.
2011: Mention the agriculture regions as
2001: Examine the spatial patterns of classified by Whittlessy and discuss their
development disparity prevailing in the relevance. (150 words)
world.
6. Agricultural Inputs and Productivity
2. World Resources and their Distribution 1998: Examine the impact of advanced
1997: “Water is a scarce resource in plenty”. agricultural technology on environment.
Comment and discuss its importance in the Support your answer with examples.
balanced habitat development. Support 2007: Explain the concept of sustainable
your answer with examples from Asia. development and propose a model for
2014: “World is passing through a global agricultural development.
resource dilemma.” Comment. 2009: (a) Discuss the consequences of
Climate Change on agriculture and food
3. Energy Crisis
security, and on the Coastal Zones of the
2013: Role of Venezuela in the production world.
and export of oil. (150 words)
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2013: Countries most affected in case of
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2012: Impact of failure of Monsoon on
Gujarat
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shut-down of Nuclear power. (150 words)
2014: Discuss environmental and economic 7. Food and Nutrition Problems
problems associated with coal production. 8. Food Security; Famine: Causes, Effects and
2015: “Energy mix is a step towards Remedies
sustainability.” Discuss. 2010: Famine to a considerable extent, is a
4. The Limits to Growth man made Hazard. Elaborate.
1998: Explain the term resource 9. World Industries: Locational Patterns and
management. Discuss its relevance in the Problems
context of global resource scarcity and the 1991: Examine the world patterns of
future of mankind. industrial development and explain the
5. World Agriculture: Typology of Agricultural problems of industrial development at
Regions national levels.
1993: Give an account of the agricultural 2005: Discuss Weber’s theory of industrial
typology of the world as presented by location, and assess its relevance in the
Whittlesey and critically examine the present-day context.
parameters used in its delineation. 2012: Problems faced by industries which
1996: Examine the bases of classification of developed due to inertia. (150 words)
agricultural regions as proposed by 2012: Locational significance of Rotterdam
Whittlesey and explain the causes for the European economy. (250 words)
essential difference between intensive

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10. Patterns of World Trade production and export of Coffee in the

2010: Discuss the role of WTO in world. (250 words)
determining the pattern of World Trade. 2013: Analyze the causes for changes in the
2013: Discuss the changing pattern of pattern of world trade. (400 words)

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1. World Economic Development: growth is distributed among the people

positively affecting their lives.
Measurement and Problems
A) Measuring Economic Development
Economic development is the process by
Economic development is a process of
which a nation improves the economic,
change over a long period of time.
political, and social well-being of its people.
Though there are several criteria or
Economic development is a broader
principles to measure the economic
concept than economic growth.
development, yet none provides a
Development reflects social and economic
satisfactory and universally acceptable
progress and requires economic growth.
index of economic development.
Growth is a vital and necessary condition
for development, but it is not a sufficient Hence, it is a complex problem to answer
condition as it cannot guarantee about the measuring of economic
development. development.
Economic development is said to be Despite, the common economic indicators
achieved when the profits of economic of development are-

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1. National Income as an Index of Arguments in Favour of National Income:

Development (i) A larger real national income is normally a
There is a group of certain economists which pre-requisite for an increase in real per
maintains the growth of national income capita income and hence, a rising national
should be considered most suitable index income can be taken as a token of economic
of economic development. They are Simon development.
Kuznets, Meier and Baldwin among many (ii) If an increase in per capita income is taken
others who favoured this method as a basis as the measure of economic development,
for measuring economic development. we are likely to be put in an awkward
For this purpose, net national product (NNP) situation of saying that a country has not
is preferred to gross national product (GNP) developed if its real national income has
as it gives a better idea about the progress increased but its population has also
of a nation. increased at the same rate.

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Arguments against National Income: economic development, with the increase

(i) It cannot definitely be said that economic in per capita income of these countries,
welfare has increased if the national and there is also increase in unemployment,
even the per capita income may be rising poverty and income inequalities. This
unless the distribution of income is cannot be regarded as development.
equitable. (d) Economic growth is multi-dimensional
2. Per Capita Real Income concept which involves not only increase in
money income but also improvement in
• Some economists believe that economic
social activities like education, public
growth is meaningless if it does not improve
health, greater leisure etc. Such
the standard of living of the common
improvements cannot be measured by
masses.. Such a view holds that economic
changes in per capita real income.
development be defined as a process by
which the real per capita income increases (f) The data of per capita national income are
over a long period time. often inaccurate misleading and unreliable
because of imperfections in national
• The UNO experts in their report on
income data, and its computation..
‘Measures of Economic Development of
Under-developed Countries’ have also 3. Economic Welfare as an Index of Economic
accepted this measurement of Development:
development. • Keeping in view the drawbacks of real
Arguments in favour of per Capita Real Income: national income and real per capita
measures of economic development, some
• The aim of economic development is to
economists like suggested economic
raise the living standard of the people and
welfare as the measure of economic
through this to raise consumption level. This
development.
can be, estimated through per capita
income rather than national income. If • Economic welfare stresses upon equal
national income of a country goes up but distribution of national

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the per capita income is not increasing, that •
will not raise the living standard of the
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Higher the level of economic welfare, higher
will be extent of economic development
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people. That way, per capita income is a and vice-versa.
better measure of economic development 4. Measurement through Occupational
than the national income. Pattern:
• Increase in per capita income can be better • The distribution of working population in
index of an increase in the welfare of the different occupations/sectors of economy
people. In advanced countries, national is also regarded as a criteria for the
income has increased much faster than the measurement of economic development.
growth rate of population. It means the per
(1) Primary Sector: It includes agriculture,
capita real income has been constantly
fisheries, forestry, mining etc.
increasing and this has led to the increase
in welfare of the people. That way, per capita (2) Secondary Sector: It consists of
income can be considered a better index of manufacturing, trade, construction etc.
the welfare of the people. (3) Tertiary Sector: It includes services, banking,
Arguments against Per Capita Real Income: transport, etc.
(a) When we divide national income by • In under-developed countries, majority of
population, the problem of population in the working population in engaged in
that case is ignored. It confines the scope of primary sector. On the contrary, in
the study. developed countries the majority of the
working population works in tertiary sector.
(b) In this measure, distributive aspect has
been ignored. • A shift in occupational distribution of
population from primary sector to
(c) In the underdeveloped countries where per
secondary and territory sectors shows the
capita income is regarded as a measure of

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movement towards economic 7. Infrastructure

development when a country makes • A country’s infrastructure is defined by our
economic progress, its working population author as “the foundations of a society:
begins to shift from primary sector to urban centers, transport networks,
secondary and tertiary sectors. Thus, with communications, energy distribution
economic development the percentage of systems, farms, factories, mines, and such
population engaged in primary sector facilities as schools, hospitals, postal
declines, while the percentage of services, and police and armed forces.
population working in secondary and Countries with higher economic
tertiary sectors increases. development have better infrastructure
However- compared to developing ones.
(i) It is not always possible to clearly classify
the occupations in an underdeveloped B. Global Economic development pattern:
economy in three distinct categories.
• The world is often divided into two broad
(ii) Secondly, in the early stages of categories of countries:
development, the activities of tertiary
1. the More Developed Countries (MDCs), and
sector like transport, communications, trade
etc. are inadequate and insufficient. 2. the Less Developed Countries (LDCs)
Consequently the chances of employment LDCs MDCs
in these activities are very restricted.
1. Sub-Saharan Africa 1. North America
5. Population Growth 2. South Asia 2. Japan
• In general, poorer countries have more 3. Southeast Asia 3. Europe
rapid rates of population growth. Large
4. China * 4. Australia / New Zealand
population growing at rapid rate pushes
resource utilisation to the brink, hault 5. North Africa and 5. Russia
capital formation and competition for Southwest Asia
resources causes inflation, diluting the 6. Middle America
economic growth. GUIDANCE 7. South IAS
America
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6. Consumption per capita 8. The Paci?c Realm
• Consumption per person is a good indicator • One set of terms that is being is: First World
of development. The richer a country is, the Countries Second World countries and Third
more its citizens consume. World Countries.

1st world 2nd world 3rd world

The bloc of democra c- The Eastern bloc of the The remaining three-quarters
industrial countries within communist-socialist states, of the world’s popula on,
the American in?uence the “Second World”. states not aligned with either
sphere, the “First World”. It included- countries of the bloc were regarded as the
Soviet Union, Eastern Europe, “Third World.”
China, North Korea, Cuba,
Vietnam, and a few other
countries.

• It should be noted that great disparities • Such a broad regionalization scheme is likely
exist within realms and within individual to be overly simplistic, yet it commonly used
countries. However, categorisation is done and it can be quite useful.
simply to understand the variation in
economic development across the globe.

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Difficulties Faced in the Measurement of per capita income would indicate country B
Economic Development as more important than country A.
The measurement of economic Therefore, we are required to know both
development is really a difficult work as these measures to assess economic
every method faces the problems of its own development accurately.
kind. 3. It does not take into account the
1. Lack of Statistical Data distribution of wealth and suffers with the
• In order to measure economic development problem of averages.
accurately, we should have GUIDANCE IASinformal sector and unpaid work
correct 4. It excludes
assessment of national income, per M capita such
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income, per capita consumption etc. 5. It does not tell if the life of people have
• But in under-developed economies the actually improved. Being output based not
data on national income, per capita income outcome based belies the inclusive
and per capita consumption are not development.
available. Due to lack of statistical data, it is 6. Non-Economic Factors Ignored:
difficult to assess economic development
• It is not only economic factors which affect
accurately in such countries.
economic development. But it is greatly
2. Controversy over national Income and per affected by non-economic factors like social,
capita Income: political, religious, cultural etc. for
• The economists also differ over the issue determining economic development non-
weather to use national income or per capita economic factors are indispensable. But the
income as the measure of economic measurements of economic development
development. In reality we require both of do not take into account the non-economic
these measures. If in two countries the factors.
national income is increasing at same rate 7. Difficulties of International Comparisons:
but in country. A population is doubled
• There is no universal measure of economic
whereas population remains the same in
development with the help of which
country B, in that case the per capita income
International comparisons can be made
in country B will reduce to half as compared
possible.
to country A.
• The national income measure will put both
the countries at same economic level. But

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C) Evolution of various Ideas of development The Physical Quality of Life Index (PQLI) was
1. Growth in GNP/GDP Initially, only GDP /GDP developed in 1970s by Morris to respond to
was taken as a measure to assess economic the dissatisfaction due to use of GNP/GDP
development. Increase in GDP/GNP is as a measure of economic development. It
expected to ensure greater availability of was a relatively simple index taken as
goods and services to a larger part of average of three figures viz. basic literacy
population with higher standards of living. rate, infant mortality and life expectancy at
However, there are several limitations of age 1.
this method. Each of these were given equal weightage.
2. The Physical Quality of Life Index (PQLI) It was calculated as follows:

Criticized for- Pakistani Economist Mahbub ul Haq and

 No theoretical explanation for assigning Indian Nobel laureate Amartya Sen.
equal weightage to the three parameters. • HDI measures average achievements in a
country in three basic dimensions of human
 Considerable overlap between life
development viz. A long and healthy life;
expectancy and infant mortality rate.
Access to knowledge; A decent standard of
3. Human Development Index (HDI) living. The overall index is a geometric mean
• HDI is part of the UNDP Human of three indices viz. Life Expectancy Index,
Development Report developed by Education Index, GNI Index. They are show
as-

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• However, there are several limitations of actual level of human development

HDI also because the three indicators used (accounting for this inequality), while the
in HDI are good but not ideal. It does not HDI can be viewed as an index of “potential”
consider distribution of income directly. The human development (or the maximum level
index is relative and not absolute and of HDI) that could be achieved if there was
therefore the results derived from it may no inequality. The “loss” in potential human
be misleading. development due to inequality is given by
4. Inequality-adjusted HDI (IHDI) the difference between the HDI and the
IHDI and can be expressed as a percentage.
• The Inequality-adjusted Human
Development Index (IHDI) adjusts the 5. Gender related Development Index (GDI)
Human Development Index (HDI) for • The Gender related Development Index
inequality in distribution of each dimension (GDI) measures gender inequalities in
across the population. The IHDI accounts for achievement in three basic dimensions of
inequalities in HDI dimensions by human development as follows:
“discounting” each dimension’s average • Health, which is measured by female and
value. male life expectancy at birth Education,
• If there is no inequality across people, HDI which is measured by female and male life
is equal to IHDI. However, in case of expectancy at birth
inequalities, the value of IHDI is always less • Education, which is measured by female and
than HDI. This implies that the IHDI is the

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male expected years of schooling for a development report, which provides an

children and female and male mean years update of changes during the year, along
of schooling for adults ages 25 and older with a report on a special theme, such as
Command over economic resources, global warming and development, and
measured by female and male estimated migration and development.
earned income. • The introduction of the index was an
• In order to address shortcomings of the GDI, explicit acceptance that development is
a new index Gender Inequality Index (GII) a considerably broader concept than
was proposed. This index measures three growth, and should include a range of social
dimensions viz. Reproductive Health, and economic factors.
Empowerment, and Labour Market • The HDI is a very useful means of comparing
Participation. the level of development of countries. GDP
6. Multidimensional Poverty Index (MPI) per capita alone is clearly too narrow an
• The Multidimensional Poverty Index (MPI) indicator of economic development and
identifies multiple deprivations at the fails to indicate other aspects of
individual level in health, and standard of development, such as enrolment in school
living. It uses micro data from household and longevity. Hence, the HDI is a broader
surveys, as basis of deprivation of Cooking and more encompassing indicator of
fuel, Toilet, Water, Electricity, Floor, Assets. development than GDP, though GDP still
provides one third of the index.

HDI figures for selected countries

Very high ranked countries
•
HDI - Very High (> 0.8) Norway Australia
Switzerland Denmark Netherlands Germany
Ireland United States Canada New Zealand
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Singapore Hong Kong Liechtenstein Sweden
United Kingdom)
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High
• HDI - High (0.7 - 0.79) Russia Kazakhstan Cuba
Iran Venezuela Turkey Mexico Brazil
Azerbaijan Ukraine Albania China Colombia.
Medium
D) The Human Development Index (HDI) • HDI - Medium (0.55 - 0.69)
• The HDI was introduced in 1990 as part of • Botswana Egypt Indonesia Paraguay South
the United Nations Development Africa V iet Nam Bolivia Kyrgyzstan Iraq
Programme (UNDP) to provide a means of Morocco Namibia India Ghana
measuring economic development in three
Low
broad areas - per capita income, heath and
education. The HDI tracks changes in • HDI - Low (<0.55 )
the level of development of countries over • Pakistan Nigeria Cameroon Z imbabwe
time. Yemen Haiti Rwanda Uganda Sudan
• Each year, the UNDP produces Afghanistan Ethiopia Gambia Eritrea

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Evaluation of the HDI For example, access to the internet might

Despite the widespread use of the HDI there be regarded by many as a freedom which
are a number of criticisms that can be made, improves the quality of people’s lives.
including: 4. As with the narrow measure of living
1. The HDI index is for a single country, and as standards, GDP per capita, there is no
such does not distinguish between indication of the distribution of income.
different rates of development within a 5. In addition, the HDI excludes many aspects
country, such as between urban and of economic and social life that could be
traditional rural communities. regarded as contributing to or constraining
2. Critics argue that the equal weighting development, such as crime, corruption,
between the three main components is poverty, deprivation, and negative
externalities.
rather arbitrary. GUIDANCE IAS
6. GDP is calculated in terms of purchasing
3. Development is largely about freedom,
MObut
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the index does not directly measures this. power parity, and the value can change.

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2. World Resources and their creation, as he is at the top of the hierarchy

in resource consumption. Only the
Distribution satisfaction of human beings converts
anything or a substance into a resource.
• The modern economy is a resource-based • Small and Witherick (1997) have defined
economy and all the development of a resource as “a feature of the environment
country or a region is based on resources, (e.g., minerals, soils, climate) used in order
especially on natural resources. Nature has to meet particular human needs (e.g.,
given us abundant resources in the form of energy, housing, food, etc.). It is the act of
water, air, heat, natural vegetation, soil, wild exploitation which converts a feature or
animals, metals, fossil fuels, etc., and man commodity into a resource.” Further, they
by his technical skill and knowledge is using elaborated the statement that “often the
all these resources in some way or the other term resource is taken to be synonymous
right from the dawn of civilization. with natural resource, but it can be
• Etymologically, ‘resource’ refers to two extended to embrace human resources,
separate words - ‘re’ and ‘source’ meaning such as manual skills, the innovative ability
anything or substance that may occur or entrepreneurial talents of a population.”
unhindered many times. Although Resources are significant because:
resources have been utilized by man right (i) they satisfy human wants both individual
from the beginning of civilization, but and social,
‘resource’ as a concept had no special
(ii) they are a source or possibility of assistance,
significance till the early part of the 20th
century. (iii) they are a means of development and
support,
Definition
(iv) they are an expedient,
• According to Z immermann, “the word
‘resource’ does not refer to a thing or a (v) they have capacity to take advantage of
substance but to a function which a thing or opportunities, and
a substance may perform or toGUIDANCE
an operation (vi) oneIAS relies on them for aid, support and
in which it may take part, namely, theTHAN A COsupply.
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function or operation of attaining a given
end such as satisfying a want. In other words,
the word resource is an abstraction Classification of Resources
reflecting human appraisal and relating to a • For resource classification, several scholars
function or operation.” Thus, a resource have adopted different criteria and
satisfies individual human wants or attains explained their characteristics. Resources
social objectives. It also refers to the can be classified on the basis of their nature,
positive interaction between man and durabilities, ownership, and distribution
nature. Man is, of course, the most pattern. The following chart depicts the
important and integral part of resource classification of resource :

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Figure 1: Global Distribution of Fresh Water

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• Glaciers and icecaps cover about 10% of the Lowlands in the South Pacific, Congo, Upper
world’s landmass. These are concentrated Mackenzie River, and North America prairie
in Greenland and Antarctica and contain potholes.
~70% of the world’s freshwater. • The total global area of wetlands is
Unfortunately, most of these resources are estimated at ~2 900 000 km2 . Most wetlands
located far from human habitation and are range in depth from 0-2 metres. Estimating
not readily accessible for human use. the average depth of permanent wetlands
According to the United States Geological at about one metre, the global volume of
Survey (USGS), 96% of the world’s frozen wetlands could range between 2 300 km3
freshwater is at the South and North poles, and 2 900 km3 .
with the remaining 4% spread over 550 000
km2 of glaciers and mountainous icecaps
measuring about 180 000 km3 (UNEP, 1992). Water Use trend and future:
• Groundwater is by far the most abundant 1. Freshwater resources are unevenly
and readily available source of freshwater, distributed, with much of the water located
followed by lakes, reservoirs, rivers and far from human populations. Many of the
wetlands: world’s largest river basins run through
thinly populated regions. There are an
 Groundwater represents over 90% of the
estimated 263 major international river
world’s readily available freshwater basins in the world, covering ~231 059 898
resource. About 1.5 billion people depend km2 or 45.3% of the Earth’s land surface area
upon groundwater for their drinking water (excluding Antarctica).
supply (WRI, UNEP, UNDP, World Bank, 1998).
2. Groundwater represents about 90% of the
 The amount of groundwater withdrawn world’s readily available freshwater
annually is roughly estimated at ~600-700 resources, and some 1.5 billion people
km3 , representing about 20% of global depend upon groundwater for their
water withdrawals (WMO, 1997). drinking water.
 A comprehensive picture of the quantity of 3. Agricultural water use accounts for about
groundwater withdrawn andGUIDANCE consumed IAS
75% of total global consumption, mainly
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annually around the world does not exist. through crop irrigation, while industrial use
• Most freshwater lakes are located at high accounts for about 20%, and the remaining
altitudes, with nearly 50% of the world’s 5% is used for domestic purposes.
lakes in Canada alone. Many lakes, 4. It is estimated that two out of every three
especially those in arid regions, become people will live in water-stressed areas by
salty through evaporation, which the year 2025. In Africa alone, it is estimated
concentrates the inflowing salts. The that 25 countries will be experiencing water
Caspian Sea, the Dead Sea, and the Great stress (below 1,700 m3 per capita per year)
Salt Lake are among the world’s major salt by 2025. Today, 450 million people in 29
lakes. countries suffer from water shortages.
• Reservoirs are artificial lakes, produced by 5. Clean water supplies and sanitation remain
constructing physical barriers across flowing major problems in many parts of the world,
rivers, which allow the water to pool and with 20% of the global population lacking
be used for various purposes. The volume access to safe drinking water. Water-borne
of water stored in reservoirs worldwide is diseases from faecal pollution of surface
estimated at 4 286 km3 waters continue to be a major cause of
• Wetlands include swamps, bogs, marshes, illness in developing countries. Polluted
mires, lagoons and floodplains. The 10 water is estimated to affect the health of
largest wetlands in the world by area are: 1.2 billion people, and contributes to the
West Siberian Lowlands, Amazon River, death of 15 million children annually.
Hudson Bay Lowlands, Pantanal, Upper Nile
River, Chari-Logone River, Hudson Bay

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• A wide variety of human activities also vulnerability in other areas. Because they
affects the coastal and marine environment. are highly dependent upon marine
Population pressures, increasing demands resources, small island developing states
for space and resources, and poor economic (SIDS) are especially vulnerable, due to both
performances can all undermine the the effects of sea level rise and to changes
sustainable use of our oceans and coastal in marine ecosystems.
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areas. Serious problems affecting the
quality and use of these ecosystems include:
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2. FOREST
1. Alteration and destruction of habitats and
ecosystems. Estimates show that almost • Forests cover 4.03 billion hectares globally,
50% of the world’s coasts are threatened by approximately 30% of Earth’s total land area
development-related activities. (FAO 2010). They account for 75% of
terrestrial gross primary production (GPP)
2. Severe eutrophication has been discovered
(Beer et al. 2010)and 80% of Earth’s total
in several enclosed or semienclosed seas.
plant biomass and contain more carbon in
It is estimated that about 80% of marine
biomass and soils than is stored in the
pollution originates from land-based
atmosphere. Forests also harbor the
sources and activities.
majority of species on Earth and provide
3. In marine fisheries, most areas are valuable ecosystem goods and services to
producing significantly lower yields than in humanity, including food, fiber, timber,
the past. Substantial increases are never medicine, clean water, aesthetic and
again likely to be recorded for global fish spiritual values, and climate moderation .
catches. In contrast, inland and marine Moreover, more than 200 million of the
aquaculture production is increasing and world’s poor rely directly on forests for
now contributes 30% of the total global fish energy, shelter, and their livelihoods.
yield. Forests are distributed across the globe.
4. Impacts of climate change may include a • Thirty-one percent of Earth’s total forest
significant rise in the level of the world’s area is found in Asia (including Asian
oceans. This will cause some low-lying Russia), followed by 21% in South America,
coastal areas to become completely 17% in Africa, 17% in North and Central
submerged, and increase human

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America, 9% in Europe, and 5% in Oceania (FAO 2010). Globally, 5% of forests are plantations
generally used for commercial purposes

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Concepts related to forest management forest plantations on previously unforested

• Forest degradation and forest improvement land).
occur within forests that continuously • Deforestation is defined as the removal of
remain above the 10 percent canopy the forest and its replacement by another
threshold that defines forests. land use class (e.g. shifting or permanent
• Reforestation and natural regeneration on agriculture, mining or water
forest lands occur when GUIDANCE
forests are IAS
impoundments), or the long-term reduction
M ORE TH
established or grow back, respectively, after AN A of
CO the
ACH IN canopy
G..... cover to less than 10 percent.
their canopy cover has temporarily fallen In some cases, deforestation may
below ten percent, but have been contribute to such severe land degradation
considered to be forests throughout that (e.g. in ecologically marginal areas, such as
time. Change in forest area is the result of arid or mountain zones, and in the wet
transfers between forest and other land use tropics) that little use can subsequently be
classes. Gains are due to the expansion of made of the land without costly
natural forest (including succession of rehabilitation. By definition, timber
forests on abandoned agricultural land) and harvesting does not, in itself, result in
afforestation (i.e. the establishment of deforestation if the forest is allowed to
regenerate.

Relationships among forest change processes

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Increase in forest area in the industrialized forest area is the depopulation of certain
countries rural areas, owing in part to continuing
In contrast to the high deforestation rate in changes in European agriculture.)
many tropical and subtropical countries, the • At the same time, there is a contradictory
rate of change in forest area in most trend of continuing conversion of forest and
industrialized temperate and boreal other wooded land to urban areas and other
countries is low. In Europe, the area of forest uses such as transport infrastructure and
is expanding, while that of “other wooded recreational facilities (e.g. ski slopes and
land” is decreasing, with a net expansion of trails).In the United States as well, the forest
forest and other wooded land of 0.3 area is expanding while other wooded land
million ha per year. Several developments is decreasing; the net change is an increase
are taking place in the region: of 0.4 million ha per year. Much of this
• Plantation programmes are being increase is due to the natural transition, and
implemented (e.g. in France, Ireland, Turkey reclassification, of other wooded land to
and Spain). forest. Most CIS countries report increases
for both forest and other wooded land, with
• Agricultural land or other wooded land is
a net increase of 1.2 million ha per year for
undergoing natural conversion to forest.
the region.
(Forest is the climax ecosystem for most of
Europe, so most land will revert to forest if ( Interlink forest resources and the above data
human intervention is stopped. A probable with the distribution of natural vegetation
major cause of the expansion of Europe’s covered under Biogeography booklet and some
part in Environmental Geography)

3. MINERALS Generic Distribution of minerals

• Minerals are of vital significance to every • The distribution of minerals is governed by
country because it is the minerals which well-defined geological condi-tions. Their
make possible the power and machine. The distribution is the outcome of geological
development of fundamental GUIDANCE
science, IAS
action in the past. Generally, three groups
engineering and technology has made ofACH
MOREitTHAN A CO rocks are associated with the recurrence
ING.....
possible to extract and use a great variety of minerals. These are:
of minerals in increasing proportion. I. The Pre-Cambrian Rocks: These are oldest
Mineral resources are, however, fixed in igneous rocks composed of basement
quantity; they cannot be increased or complex in its most contorted or
replaced. compressed form. These rocks contain rich
• Once minerals are extracted from the earth, metallic minerals, e.g., gold, silver, copper,
they are gone forever. It takes probably nickel and iron ore.
millions of years for nature to turn earth II. Sedimentary Formations of Cambrian and
substances into minerals. From a practical Post-Cambrian Period: These rocks contain
viewpoint, therefore, mineral deposits are resources like coal, petroleum, potassium
exhaustible and mining is considered as a and magnesium and some non-ferrous
‘robber industry’. In fact, minerals are metals.
decreasing rapidly and in future, civilisation
III. The Geological Structures Associated with
may be threatened by their shortage unless
Volcanic Activity: Some of the world’s most
it is counteracted by new discoveries. Owing
important reserves of minerals like copper,
to the difficulties of renewing supplies,
lead and zinc, tungsten, vanadium,
their conservation demands high priority,
molybdenum and manganese, etc., are
particularly of those minerals which are
found in rocks, especially those of tertiary
available in small quantity and also of those,
age and are the result of volcanic activity.
supply of which is being exhausted rapidly
due to great demand.

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Factors Affecting Exploitation of Mineral essential. Not only for the mining but it is
Resources also necessary for mined ores to be
• The possession of minerals cannot decide transported at the sites of their use. Ores
the prosperity of a country, because are relatively bulky and heavy. They are thus
existence of a mineral ore is no guarantee costly to transport and the shorter the
that it will be exploited. Often they are distance to be covered the better. The
found in such a small proportion as to be deposits having coastal location or located
almost unavailable and, hence, not useful near industrial sites have an advantage over
for man. Before a mineral can be worked it those far inland.
must be ascertained whether its value is vi. Stage of Industrial Development : The stage
greater than the costs of working, of industrialisation of a country is the
transporting and concentrating the ore. The general index of the exploitation of her
main factors influencing their exploitation mineral wealth. In fact, mineral exploitation
are as follows: is cumulative in the industrial cycle. The vast
i. Richness or Grade of the Ore: The abundance mineral resources of China, India and Brazil
or otherwise the absence of minerals almost remained neglected till they
determines in a large measure their marched on the path of industrial
commercial exploitation. Ores vary in their development.
metal content. Generally the higher-grade vii. Technology: Technological changes
ores are more economic to work, not only pertaining to mining methods,
because they yield large amount of metal manufac-turing processes and the like may
but also because their higher metal content change once worthless deposits are
makes them easier and cheaper to smelt. converted into esteemed commercial ores.
Minerals of high value such as gold, The techniques of geological survey has
diamonds, copper, uranium, can often be now been changed. With the help of remote
mined at very high cost, because they are in sensing techniques, one is able to estimate
great demand and fetch high prices. the reserves of mineral resources of a
region. Other technological changes have
ii. GUIDANCE
Size of Deposit: The size of deposit is IASthe pattern of exploitation of
changed
important because mining requires aMlarge
ORE THAN A COACHING.....
amount of expensive equipment. It will not mineral resources.
be worthwhile to provide such equipment viii. Other Factors: Among other factors (a) cheap
to work a deposit which will run out in some labour supply, (b) competition from other
months. Small- scale working is only sources, and (c) economic system and tariff
profitable for precious minerals. policies are notable.
Sometimes, small deposits may be worked
out profitably where transport cost is low.
Classification of Minerals
iii. Method of Mining: The method of mining
There are several types of minerals, but
depends on the mode of occur-rence of the
according to their general characteristics
ores. The open-cast mining is the cheapest,
and commercial use, they are classified as
while shaft mines are very expensive. The
follows:
cost of mining also depends on the scale of
operations. If the mining has been done at 1. Metallic minerals: Metallic minerals are
a large scale, the capital and running costs being used for a very wide range of
can be offset. purposes. These are sub-divided into the
following groups:
iv. Accessibility: The accessibility of a region
where the particular mineral deposit occurs a) Iron.
is of great significance. The terrain and b) Base metals such as tin, copper,
climate determine accessibility which helps aluminium, lead and zinc.
or hinders the mining operations. c) Ferro-alloys such as manganese,
v. Transportation Facilities: For a successful chromium, nickel, cobalt, tungsten,
mining transportation facilities are very molybdenum and vanadium can be

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alloyed with iron to produce better steel. this ore is between 50 to 65 per cent and
d) Precious metals like gold, silver and is the most important industrial ore in
platinum. terms of quantity used. Haematites are
red ores derived from sedimentary rocks
e) Others include uranium, which has
and occur in crystalline or in powdery
specialised uses.
forms.
2. Non-metallic minerals: These minerals are
iii. Limonite (2Fe203H20): The iron content
used for structural purposes, chemicals and
in this ore is less than 50 per cent. This is
various industries. The more common non-
a brown ore occurring in sedimentary
metallic minerals are asbestos, mica,
rocks over large areas of the world. It
graphite, fluor spar, sulphur, diamonds,
also sometimes occurs in swamps, where
phosphate rocks, gypsum, etc. Certain
it is known as bog iron.
precious stones, e.g., diamonds are also
non-metallic minerals. iv. Siderite (FeC03): This is a carbonate of
iron, ash-grey in colour, and is found
3. Mineral fuels: Coal, petroleum and natural
interbedded with sedimentary rocks. Its
gas are the mineral fuels. These three are
iron content is usually between 20 to 30
also known as fossil fuels.
per cent.
4. Rocks: Rocks are also aggregations of
minerals. Those commercially exploited Production and World Distribution
include granite and other crystalline igneous • Iron ore-producing areas are widely
and metamorphic rocks. These are used as distributed in the world. There are about 60
building stones, road-metal, brick making, countries in the world, which produce iron
cement making, etc. ore. China, Brazil, Australia, India, Russia,
Ukraine, USA, South Africa, Canada,
IRON ORE Sweden, etc., are the main producers of the
iron ore. Table 8.1 indicates the percentage
• Iron is a basic mineral and the most useful of the iron ore production in important
of all the metals. Iron ore has unique
importance in the modern world. GUIDANCE
It provides IAS
countries of the world.
steel which is the basis ofMORE Iron
allTHAN A COACH ore production percentage
ING.....
industrialization. Today, it is an essential of important countries
metal in the structure of civilisation. Country Production year/percentage of
Without it, there would be no railways, the world
steamships, or machinery. Apart from its
1960 1975 2000 2006
use in the construction of chemical plant,
iron and some of its compounds are vital in China 7.5 6.5 24.3 30.77
certain chemical processes. Brazil 2.5 9.2 19.7 17.75
• Iron ore smelted in a blast furnace with coke Australia 11.3 12.2 18.4 15.98
and limestone becomes pig iron, the raw India 4 5.2 9.2 8.88
material from which cast iron, wrought iron
and steel is made. Russia (USSR) 21.2 25.4 6.3 6.21

Types of Iron Ore Ukraine — — 4.5 4.32

There are four types of iron ore, viz., Magnetite, USA 18.1 9.8 3.6 3.2
Haematite, Limonite and Siderite. Canada 4.3 5.5 2 1.95
i. Magnetite (Fe304): This is the finest type Sweden 0.9 6.5 1.5 1.42
of iron ore with a very high content of Venezuela — — 1.4 1.18
iron up to 70 per cent. Magnetite is black Iran — — 1.1 1.18
in colour and formed in igneous or
metamorphic rocks. It has excellent Kazakhstan — — 1.3 0.89
magnetic qualities. Mexico — — 0.8 0.77
ii. Haematite (Fe303): The iron content in Mauritania — — 0.7 0.65

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China now identified as one of the main reserves

• China now emerged as a leading iron ore- of Brazil. Largely due to the output of this
producing country in the world. Till 1975, region, Brazil now leads the world in iron
its production of iron ore in the world was ore exports.
only 6.5 per cent, but in year 2000, China Australia
produced 24.3 per cent iron ore of the world. • It ranks third in world production with 15.98
This percentage further increased to 30.77 per cent production. Australia has widely
GUIDANCE
in year 2006-07, accordingly China is now
first in iron ore production in the world.
IAS iron ore deposits and reserves
distributed
which are very large. The recent working of
MORE THAN A COACHING.....
China has large iron ore deposits, of which vast iron ore fields in Western Australia at
the Manchurian deposits are the most Mt. Goldworthy, Mt. Whaleback, Mt. Bruce,
actively mined. Other important regions are Mt. Tom Price, and at Yami Sound has greatly
the Lower Chang (Yangtze) at Ma’anshan increased production. In Southern Australia,
and Tayeh, the Chungking area, and around the largest deposit occurs in Iron Knob, Iron
Taiyuan. Scattered deposits occur in the Monark, etc. Australia exports most of its
peninsula, north of Baotou (Paotow), iron ore to Japan and European countries.
border of Xinjiang (Sinking), at Kiuchure, in
the lower Xi Jiang (Si K iang), near Russia
Guangzhou (Canton), and on the island of • The undivided USSR was the leading iron
Hainan in the south. ore-producing country in the world. But, in
Brazil 2000 and 2006, it was 6.3 and 6.21 per cent
respectively. Now, Russia ranks fifth in iron
• Brazil is the world’s second largest iron ore- ore-producing countries of the world. The
producing country contributing 17.75 per yearly production of Russia is about 105
cent of the world’s total production. Till 1975 million metric tons.
its percentage in world production of iron
ore was 9.2. The main iron ore-producing The three main areas of iron ore in Russia are:
areas are located in Itabiria in south-east • Ural Region: This region is having a high-
Brazil. Itabiria is believed to be the richest grade ore and produces about 25 per cent
iron ore reserves in the world. Brazil’s other of the country’s total. Magnitogorsk,
important areas of iron ore are: Urucum Novotrotsk, Zlaloust, Nizny Taghil and
(Mato Grosso), Catalao (Goias) and Ipanema Seerow are the main areas of this region.
(Sao Panto). The Carajas iron ore reserve is

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• Moscow: Tula region also known as Kursk • Western Region: This includes many
Magnetic Anomaly is having large reserve scattered fields in western USA in the states
of iron ore. This region produces high-grade of Utah, Nevada, Wyoming and California.
iron ore. Orel and Veroneth are two major The ores are transported to the steelworks
areas of this region. at San Francisco, Los Angeles, Pueblo,
• North-West Russia: In this region Murmansk Colorado and Provo, Utah.
and Kovador are significant mining areas of South Africa
iron ore. • South Africa, emerged as a leading iron ore-
• In Russia, most of the iron exploitation and producing country of the African continent
associated industrial development is and ranks 8th in the world iron ore
concentrated near Moscow. Many rich production. In South Africa Transvaal is the
deposits were found in Siberia also. main iron ore-producing centre. Transvaal
Ukraine is having high-grade ore with 60 to 65 per
cent iron content.
• It produced 4.32 per cent of the world
production in 2006. Krivoi Rog of Ukraine Canada
contributes 75 per cent production of • Canada produces 1.95 per cent of the total
Ukraine.. Other regions of Ukraine are world production of iron ore in 2006. Canada
Zaporozhe, Zdanow, Lipetsk and Kerch has iron ore in the Lake Superior region, as
Peninsula. does the USA. The main centres are
USA Schefferville and Wabush City. Ore is taken
by rail to Sept Isles on the Gulf of St.
• Once USA was the highest iron ore-
Lawrence and shipped via St. Lawrence
producing country of the world. The
Seaway and Great Lakes to Canadian and US
percentage of world production of iron ore
steel-making centres.
was 18.1 in 1960 and 9.8 in 1975. But now it
produces less than 4 per cent of the world’s United Kingdom
production and ranks 7th. The four main iron • In the 19th century Great Britain was the
GUIDANCE
ore-producing regions of USA are Lake
Superior region, north-eastern region,
IAS
leading producer of iron ore of the world
but now it is no more in prominence and
MORE THAN A COACHING.....
south-eastern region and western region. most of its ores have been exhausted. The
• Lake Superior Region: In this region area of eastern England is the most
haematite iron ore occurs as long low ridge, important in output of iron ore stretching
the most important of which is the Mesabi from Yorkshire through Lincolnshire,
Range. Other deposits occur in the Rutland, and Northamptonshire. UK is now
Vermilion, Cuguna, Gogebic, Menominee a major iron ore importing country.
and Marquette ranges. This region France
comprises north-eastern Minnesota, • The major producing areas of France are
Michigan and south-eastern Wisconsin Lorraine, Normandy and Pyrenees. The
states. Lorraine district supplies about 95 per cent
• North-eastern Region: Mainly magnetite of country’s total. Though the metallic
ores are mined in the Adirondacks region content of the ores is about 35 per cent on
of New York and the Cornwall area of the average, it can be smelted at a low cost
Pennsylvania. They have the advantage of because of calcium carbonate content in the
a central location near the industrial cities ore. It is the largest single ore-body reserve
of New York and Pittsburgh. in Europe. It helped much in setting up steel
• South-eastern Region: This region, centered plants in France.
at Birmingham, Alabama, produces both Germany
haematite and limonite ores. It is favourably • The major iron ore-producing areas of
located near the coalfields of the southern Germany are located in West Germany,
Appalachians and serves the iron and steel these are: Saar Vogelsburg, Erzeburg and
industry of Birmingham. Westphalia, Germany has considerable

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reserves of medium quality of ore located Mauritania 1,500 0.4

in the eastern part of Rhine valley, Siege
Mexico 1,500 0.4
and Lahn river valley.
World 37,00,000 100.00
Africa
• In Africa, apart from South Africa, other
• It becomes clear from the above table that
countries having iron ore mining are
Ukraine, Brazil, Russia, China and Australia
Tunisia, Algeria, Morocco, Liberia and
are having major reserves of the iron ore.
Mauritania. Mauritania is the 15th iron ore-
The total reserve of iron ore in the world is
producing country of the world, which has
estimated as 37,000 billion metric tons.
produced 0.65 per cent iron ore of the world
in 2006.
Asia MANGANESE
• There are many areas in Asia, apart from • Manganese is a ferro-alloy metal and
China and India, which are having iron ore essential to the production of steel. Almost
and also produce a limited quantity. The all steel contains some manganese from 0.5
most notable ones are Iran and Kazakhstan, per cent to 12 per cent. A little manganese
which rank 12th and 13th respectively in the added to iron removes gases, and acts as a
world. North Korea, Taiwan, Malaysia and ‘cleanser’ in manufacture of steel. The
Philippines also produce iron ore. addition of 2 per cent manganese adds
strength and 12 per cent imparts great
Latin America
toughness and resistance to abrasion, as in
• In Latin America, Mexico, Venezuela, Chili the making of heavy duty machinery, railway
and Peru are the iron ore-producing lines, dredge - bucket teeth and jaws by rock
countries, other than Brazil. Mexico ranks crushers, etc. Manganese compounds are
14th in world production and its share was used in making disinfecting liquids, as a
0.77 per cent in 2006. Venezuela has rich iron decolouriser in glass-making and for the
ore reserve in the Guiana Highlands at Cerro manufacture of bleaching powder. It is
GUIDANCE
Bolivar and El Pau. Chile exploits deposits
around Algarroba in Central Chile and Peru
IAS
alloyed with copper to produce a kind of
MORE THAN A COACHING..... - bronze and with a little nickel
manganese
has mines in the Nazca Marcona area. ‘manganin’ which is highly resistant to
Iron Ore Reserves of the World corrosion. Manganese is also used in making
Iron ore reserves of the world electric batteries, in colouring pottery, tiles
and bricks.
Country Estimated reserve Percentage of
(in crore tons) the world
Ukraine 68,000 18.9 Production and World Distribution
Brazil 67,000 16.5 • The main producers of manganese in the
world are South Africa, Australia, China,
Russia 56,000 15.1
Gabon, Kazakhstan, Brazil, India, Ghana,
China 46,000 12.4 Ukraine, Georgia and Mexico. The
Australia 40,000 10.8 production of manganese in the world is
Kazakhstan 19,000 5.1 given in Table below.
USA 15,000 4.1 Production of manganese in the world (2007)
India 9,800 2.6 Country Production (in World
Sweden 7,800 2.1 thousand metric percentage
tons)
Venezuela 6,000 1.6
China 3,165 21.6
Canada 3,900 1.1
Kazakhstan 2,369 16.2
Iran 2,500 0.7
South Africa 1,618 11
South Africa 2,300 0.6
Gabon 1,597 10.9

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Brazil 1,300 8.9 manganese-producing areas of China are

Ghana 1,136 7.7 K iangsi, Hunan, Kuangsi, Kwangtung,
Kuangsi and Kwichou.
Australia 1,119 7.6
Kazakhstan
India 694 4.7
• It is the second largest producer of
Ukraine 625 4.3
manganese in the world. Its production in
Georgia 174 1.2 2007 which was 16.2 per cent of the world
Mexico 114 0.7 production.
‘World 14,642 100.00 South Africa
• It produces about 1.62 million tons of
China manganese annually. It ranks third in the
world and its share is 11 per cent in the
• China now emerged as a highest world manganese production. The
manganese-producing country in the world. important manganese-producing area of
Its production in 2007 was 21.6 per cent of South Africa is the Cape Province where
the total world production. The major Krugersdorp, Postonasburg, Manganore are
the major mining areas.

GUIDANCE IAS
MORE THAN A COACHING.....

Australia producing countries of the world. Brazil’s

• The manganese production of Australia is reserves of manganese are very large. Large
7.6 per cent of the total world production. deposits occur in Minas Geras and Mato
The manganese-producing areas are Grosso provinces. Limited amount of
located in Leonara, Victoria, Queensland manganese is also available in Angola,
and Woodie Woodie in western Australia. Zairia, Zambia, Egypt, Chile, Japan,
Malaysia, Indonesia, Iran, Turkey, etc.

Other Countries
• Gabon (10.9%), Brazil (8.9%), Ghana (7.7%),
Ukraine (4.3%), Georgia (1.2%) and Mexico
(0.7%) are other important manganese-

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COPPER Production and World Distribution

• Copper is a soft brown metal found almost • Copper is found in every continent and
solely in igneous and metamorphic rocks. produced in more than 40 countries of the
Although most important metal in history world. The main producers of copper in the
before the discovery of iron, the present- world are Chile, Peru, USA, China, Australia,
day industrial significance of copper began Indonesia, Russia, Canada, Jambia, Poland,
only with the invention of electricity. Kazakhstan and Mexico.
Copper is useful because of its various Chile
advantages. Copper is used in: • Chile is the largest producer of copper in
i. Electrical engineering the world. It produces more than 35 per cent
ii. Metallurgical industries of the world copper and its average annual
production is 55 million metric tons. In Chile
iii. Making of alloys
most of the copper mines are located on
iv. Others such as for making tubes, pipes, the western side of the Andes. The
pumps, radiators and boilers. It is also used important copper-producing areas of Chile
in soldering, welding and brazing as well as are Chuquicamata, El Teniente, El Salvador
for attractive appearance in wide range of and La-Africana. Chuquicamata is the
ornamental uses. largest copper mine in the world.
• Copper occurs in three forms: (i) as native Peru
metal in its pure state, (ii) as oxides, and
• The second largest producer of copper in
(iii) as sulphide. Commercial copper ores
the world is Peru. It produces 7.7 per cent
are not obtained from copper oxides or
copper of the world. The important copper
copper sulphides with a copper content of
mines in Peru are located at Cerro de Pasco,
2 to 6 per cent. Most copper mines are
Morococha, Casapalca and Toquepala.
operated by the open-cast method and are
highly mechanised.

GUIDANCE IAS
MORE THAN A COACHING.....

USA states, these are Arizona, Utah, Montana,

Nevada and New Mexico.
• In 2007, USA was the third largest producer
of copper with 7.6 per cent of the world Canada
production, but in 2008 it became the • Canada accounts for 3.76 per cent of the
second largest producer with 8.34 per cent world’s copper production. Its main copper-
of the world copper production. In USA five producing areas are Ontario, Manitoba,
states are the main copper-producing Quebec and Saskatchewan. More than 80 per

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cent of Canada’s copper production comes ingredient of chemical compounds in highly

from Ontario and Quebec. complex minerals.
Asia • Aluminium is the most abundant metal,
• In Asia, China, Indonesia, India, Malaysia, making up to 8 per cent of the earth’s crust,
Iran, Turkey, Philippines and South Korea but its commercial use was not possible
produce copper. until 1886 when a young American chemist,
Charles Martin Hall, and a Frenchman,
• China is the fourth largest copper producer
Herault, perfected the Hall-Herault process
in the world and produces 6.37 per cent of
of separating the metal from its ores. Today,
the world’s production. Yunnan, Czechoau
more than 14 million tons of aluminium are
and Tangshan are the main copper-
produced annually from almost 80 million
producing provinces.
tons of bauxite for use in a great range of
• Indonesia accounts for 4.14 per cent of the industries.
world copper production and ranks 6th in
• Aluminium is an important metal because
the world.
it combines strength, lightness and also has
Africa conductivity and great malleability. It has a
• In Africa, Zambia, South Africa, Congo, wide range of uses. These are:
Botswana, Morocco, Z imbabwe and i. Structural uses: Such as for constructional
Namibia are the copper-producing purposes, in making aircrafts, automobiles,
countries. Among them Zambia is the rail wagons, coaches, ships as well as several
largest producer. Zambia produces 3.57 per household appli-ances.
cent copper of the world and ranks 9th
ii. Electrical engineering: Aluminium is used in
among the copper-producing countries of
making electrical cables because it has
the world. In Africa, a 480 km long belt
conductivity of electricity.
extending from the northern part of Zambia
iii.
Protective uses: Aluminium has a very high
north west across Katanga province of Congo
Republic is the world’s largest copper resistance to corrosion, therefore, used for
anodized aluminium as well as for
region.
GUIDANCE IAS paint.
aluminium
Europe MORE THAN A COACHING.....
iv. Aluminium alloys: Where small quantity of
• In Europe, Poland, Spain, Portugal, Bulgaria,
copper, magnesium or manganese is added
Sweden, Romania are having copper
to aluminium, the alloys created are
deposits. Russia is a leading copper
superior to aluminium. Another aluminium
producer and ranks 7th in the world copper
alloy containing about 12 per cent silicone
production. It ’s percentage in world
is highly ductile and shock resistant.
production is 4.78. Another important
country is Kazakhstan that ranks 11 th in v. Other uses: Aluminium is used for making
world copper production and used to cooking utensils, aluminium foils, headlight
produce 2.93 per cent of world’s copper. The reflectors, mirrors, etc.
most important areas of copper mining are
located in the vicinity of Balkhash lake. Production and World Distribution
Australia • The production of bauxite is done in more
• Australia is the fifth largest copper producer than 40 countries of the world. The
country in the world. It produces 5.41 per important bauxite producers are (their
cent of the world production. Most of the percentage in world’s production is given
copper mines are located in central in bracket): Australia (31.34%), China
Australia. (18.41%), Brazil (13.93%), Guinea (8.36%),
Jamaica (3.98%), Russia (1.64%), Venezuela
(2.39%), Surinam (1.99%), Kazakhstan
ALUMINIUM (BAUXITE)
(2.44%), Greece (1.09%), Guyana (0.60%) and
• Aluminium is not found in the native state V ietnam (0.01%). The total world
as a pure metal. It generally occurs as an production of bauxite is given in Table

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below. in the world. It accounts for 31.34 per cent

The world’s greatest bauxite producers and of the world’s production of bauxite and
exporters are the countries located in also has about 40 per cent of the bauxite
tropical and sub-tropical regions. reserves. The Cape York peninsula, New
South Wales and western Australia are the
Australia is the largest producer of bauxite
main bauxite-producing provinces.

• China accounts for 18.41 per cent of the Greece, Guyana, Indonesia, Hungary,
world’s total bauxite production and ranks France, Russia, Turkey, Malaysia, Ghana,
second in production. Hunan, Guichou and Sierra Leone, British Guiana, etc.
Sichuan are the main bauxite GUIDANCE
mining IAS
MORE THAN A COACHING.....
provinces.
TIN
• Brazil is the third largest producer of bauxite
• Tin was found and used in early times but it
in the world and contributes 13.93 per cent
has only attained its present impor-tance
to world production. The central region is
since the invention of tin cans. Tin is
the main producing area.
extensively used in the canning industry
• India ranks 4th in bauxite production in the and as an alloy with copper in bronze. It is
world and produces 11 per cent of the world also used for coating thin sheets by steel as
production in 2009. Madhya Pradesh, it is corrosion-resisting. Tin plating
Chhattisgarh, Jharkhand, Odisha, consumes about 40 per cent of the world’s
Maharashtra, Andhra Pradesh, Tamil Nadu tin output.
and Gujarat are the major producers of
• The principal ore of tin is cassiterite or
bauxite.
tinstone (Sn02) which contains as much as
• Guinea produces more than 8 per cent 75 per cent of tin. It occurs in veins and lodes
bauxite of the world and ranks 5th in the in igneous and metamorphic rocks. Much tin
world. is weathered out of the original rocks and
• Jamaica is also a leading producer of carried by streams and rivers to be
bauxite, contributing about 4 per cent of the deposited in valley and plain alluvium. As
world’s output. Jamaica is also having large much as 80 per cent of the world’s supplies
reserves of bauxite. come from alluvial deposits. Mining is thus
• The other bauxite-producing countries are usually done by placer methods.
Venezuela, Surinam, Kazakhstan, USA,

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Production and World Distribution cent of the total output comes from China
• The tin-producing areas of the world are and Malaysia. The major producers and their
limited in certain pockets and very unevenly percentage share in the world is given in
distributed around the world. Nearly 75 per Table below.

Important tin-producing countries and

their percentage in the world
Country Percentage in the world Country Percentage in the world
China 45.05 Congo 0.90
Indonesia 30.03 Vietnam 1.05
Peru 11.41 Malaysia 0.60
Bolivia 4.80 Russia 0.60
Brazil 3.60 Australia 0.03

GUIDANCE IAS
MORE THAN A COACHING.....

China there are also marine deposits in the strait

• China has now emerged as a leading tin- of Malacca.
producing country of the world. Now China Peru
produces 45 per cent of the world’s output • Peru is the third largest producer of tin in
of tin. The main areas of tin mining in China the world and contributes about 12 per cent
are Yunnan, Nanking mountains, Kiangsi and to the world’s total output. San Antonio de
Hunan. Apart from production China also has Palo is the main tin-producing area in Peru.
huge reserves of tin.
Bolivia
Indonesia
• Bolivia is another South American country,
• Indonesia is the second largest tin producer which contributes about 5 per cent of the
and produces 30 per cent of the total world’s world’s tin production. The high plateau of
production. In Indonesia tin comes from Bolivia is the main tin-producing area. On
islands of the northern coast of Sumatra this plateau tin mines are located at high
including Bangka, Billiton and Singkil and elevations, therefore, due to transportation

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cost, the production cost becomes high. ZINC

Brazil • Zinc comes from two main sources: zinc
• Brazil is another South American country blende or zinc sulphide and calamine. It is
which produces about 10 thousand metric often found with lead, silver and some
tons of tin annually. Its share to world other minerals. The ore is found close to
production of tin is 3.13 per cent. Most of the surface, therefore, open-cast method
the tin is mined in north-eastern part of is generally used for mining. Zinc ore is
Boreborema plateau. crushed, and concentrated by the selective
flotation process to separate it from lead,
Malaysia
silver or copper with which it is combined.
• Malaysia was the leading tin-producing Sulphuric acid is an important by-product
country in the world but due to increase of of zinc smelting.
production in other Asian and South
• Z inc is extensively used as a protective
American countries, now Malaysia ranks 8th
sheath for metals. Zinc plating is done on
in the tin production of the world. Its share
several metals. Zinc-plated sheets, zinc-
in world production is only 0.60 per cent.
covered bolts, nuts, screws, wires, fences,
All the tin fields are in Peninsular Malaysia
pipes, tanks and household utensils are also
and the Kinta valley alone accounts for half
very important. Zinc is also used as alloys
the annual output. Other major areas are
because it melts at very low temperatures
the Larut Plain around Taiping, the Kelang
and is used mainly with tin to produce brass,
valley around Kuala Lumpur, the Jelebu
popular in the making of kitchen utensils,
valley, Jemaluang and Kota Tinggi in
ornamental wares, etc. Zinc is also used to
southern Johor and Sungei Lembing.
manufacture paints, dry batteries, boiler
Other Countries plates, cartridges, pipes, etc.
• Other tin-producing countries are Congo
Democratic Republic, Rwanda, South Africa
Production and Distribution
and Zimbabwe in Africa. Australia produces
0.03 per cent of the world’s output. Russia • Since lead and zinc so often occur together,
GUIDANCE
is also an important producer of tin and its the IAS
major zinc producers are much the same
MORE THAN A COACHING.....
as for lead. The main producers of zinc in
contribution in tin production of the world
is 0.60 per cent. Portugal, Spain, Thailand the world are China, Peru, Australia, U SA,
and Myanmar also produce little quantity Canada, India, Kazakhstan, Ireland and
of tin. Mexico.
• The distribution of Zinc-producing areas
along with lead has been depicted in Figure
given below.

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China Kansas, New Jersey, Tennesee, V irginia,

• China is the largest zinc-producing country Illinois and New York are having zinc mining
and produces about 32 lakh metricGUIDANCE
tons of IAS
areas.
zinc, which was 27.59 per cent of the M world Canada
ORE THAN A COACHING.....
in 2008. Most of the zinc is produced in Yunan • Canada is the fifth largest world producer
Province. of zinc and contributes 6.47 per cent in total
Peru world output. British Columbia is the largest
• Peru is the second largest producer which mining area not only in Canada but also in
contributes 13.79 per cent zinc in world’s the world. Kimberley in British Columbia,
production. In Peru, Cerro de Pasco, Huaras Flin-Flon in Manitoba and Saskatchewan are
and Ayacacho are the main zinc-producing the main areas of zinc mining.
areas. India
Australia • In India, Rajasthan state is the leading
• Australia ranks third in zinc production and producer of zinc. India ranks 6th in world
produces 12.59 per cent output of the total production and it produces 5.86 per cent of
world’s production. The main zinc- the world’s total zinc output.
producing areas of Australia are Broken Hill Other Countries
in western New South Wales, Reed Elsevier, • Some other zinc-producing countries are:
Western Queensland and Captains Flat also
in New South Wales. • In South America: Brazil, Bolivia and
Argentina.
USA
• In Asia (other than China and India): South
• The fourth largest producer of zinc in the Korea, Iran, Japan, Myanmar and
world. It accounts for 6.71 per cent of the Kazakhstan.
total world production of zinc. Arizona,
Idaho, Colorado, Missouri, Oklahoma, • In Europe: Ireland, Sweden, Spain, Greece
and Ukraine.

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• In Africa: Morocco, South Africa, Namibia, luxury articles. Because of its rarity, value
Tunisia and Algeria. and durability, it has always been highly
prized as a medium of exchange. It was also
used as coins in the past in few areas of the
NICKEL
world. Today, the interna-tional system is
• Nickel is a hard and silvery metal, used in backed by gold.
making stainless steel and for
• Gold occurs either in alluvial or placer
electro-plating. It is one of the hardest,
deposits as in California and Alaska, or as
most malleable and least fusible metals
reeps or lods underground, as in South
known. It is less magnetic than iron and is
Africa. It is difficult to recover but its value
thus useful for constructing metal parts
makes very lean ores worth working. Pure
located near compasses. The main ore of
gold is too soft to use in jewellery or
nickel is pentlaudite, a complex mixture of
ornaments and has to be alloyed with, e.g.,
nickel, iron and sulphur. It is also often
copper, silver, zinc and nickel. The purity of
found in association with copper.
gold is expressed in terms of carat, pure gold
• Most of the nickel is used in steel-making. being 24 carats.
An addition of 6 per cent nickel to steel
Production and Distribution
increases its strength, stiffness and
ductility, and this alloy is extensively used • Although gold is produced in many
in making constructional machinery and countries but the important gold-producing
transport equipment. While an addition up countries of the world are South Africa,
to 35 per cent makes steel highly resistant Australia, USA, China, Peru, Russia, Canada,
to heat and acid, which is used in Uzbekistan, Indonesia, and Papua New
manufacturing turbine blades, marine Guinea.
fittings, tools and machinery parts. Other • South Africa is the largest producer of gold
alloys of nickel are nickel-copper and in the world. Its annual production is 341.48
nickel-silver. Nickel is also used in making thousand kilograms. The Witwersand
coins, marine cable, radio transponders, district in Transvaal is leading gold-
flame tubes, batteries, etc. GUIDANCE IASarea of South Africa. Another area
producing
Production and Distribution isACH
MORE THAN A CO the Odendabsrust in Orange Free State.
ING.....
Johannesburg, Germinston, Benoni,
• The total production of nickel in the world
Booksburg, and Krugersdrop are other gold-
was 1.61 million metric tons in 2008. The
producing centres of South Africa.
important nickel-producing countries and
their percentage in world’s production is as • Australia is the second leading gold
follows: Russia - 17.14 per cent, Canada - producer in the world. Kalgorlie and
15.53 per cent, Indonesia - 13.11 per cent, Koolgardie in Western Australia are the
Australia - 11.18 per cent, New Caledonia- famous gold mining areas. The other gold
5.75 per cent, Columbia - 4.65 per cent, China mining areas of Australia are Bendigo and
- 5.28 per cent, Philippines - 5.49 per cent, Bellwort in V ictoria, Mount Morgan in
Brazil — 4.70 per cent and Cuba — 4.78 per Queensland and New South Wales.
cent. • USA is the third leading producer of gold in
• Some nickel is also produced in South Africa, the world. In USA, California, Colorado,
Dominican Republic, Norway and Germany. Nevada, South Dakota are the main gold-
In India nickel ore is found in Cuttack and producing states.
Mayurbhanj districts of Odisha. • In Canada, Porkupine, Kirkland, Larder lake,
GOLD Pikil lake, Red lake, Yellow Knife and
Clondyke are the main gold-producing
• Gold is regarded as a symbol of prosperity
areas.
and has been used from the earliest days
because of its high metallic luster and its • China has now emerged as a gold-producing
attractive yellow-reddish colour. It is used country. Its main gold-producing areas are
in jewellery and in the manufacture of Yunnan, Manchuria and Tsinling Shan.

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• In Russia, the Yakuts region of north-eastern Rare Earth Elements (REEs)

Siberia is the main gold-producing area. • Rare earth elements are a group of
• The other gold-producing countries are seventeen chemical elements that occur
Peru, Uzbekistan, Indonesia, Papua New together in the periodic table (see image at
Guinea, Chile, Mali, Tanzania, Philippines, right). The group consists of yttrium and the
Zimbabwe and Ghana. A little amount of 15 lanthanide elements (lanthanum,
gold is produced in Kolar mines of cerium, praseodymium, neodymium,
Karnataka. promethium, samarium, europium,
SILVER gadolinium, terbium, dysprosium,
holmium, erbium, thulium, ytterbium, and
• Silver is a lustrous white metal, though
lutetium). Scandium is found in most rare
much less valuable than gold. Only a small
earth element deposits and is sometimes
quantity of silver is mined as argenite (silver
classified as a rare earth element. The
ore). Most of the silver is derived from ore
International Union of Pure and Applied
of lead, zinc, copper and gold. In fact, most
Chemistry includes scandium in their rare
of the silver is obtained as a by-product.
earth element definition.
• Because of its beauty and resistance to
• The rare earth elements are all metals, and
corrosion it is useful in jewellery and other
the group is often referred to as the “rare
ornamental articles. Silver was once widely
earth metals.” These metals have many
used in making coins. Silver is also used in
similar properties and that often causes
wide range of industrial applications. Silver
them to be found together in geologic
is used in electroplating, soldering and
deposits. They are also referred to as “rare
alloying, the manufacture of silver ware,
earth oxides” because many of them are
and for silver lined steel tanks and beer
typically sold as oxide compounds.
vats. Due to its high thermal and electrical
conductivity, it can be used as an electrical Uses of Rare Earth Elements
conductor. It is also used in photog-raphy • Rare earth metals and alloys that contain
and cinematography. Silver nitrate is used them are used in many devices that people
GUIDANCE
as an antiseptic and silver iodide powder is use IAS
every day such as computer memory,
used to alter the weather by cloud seeding.
MORE THAN A DVDs,
CO ACH rechargeable batteries, cell phones,
ING.....
Similarly silver salts are used in backing catalytic converters, magnets, fluorescent
mirrors. lighting and much more.
• During the past twenty years, there has
Production and Distribution been an explosion in demand for many
items that require rare earth metals. Twenty
• Mexico is the largest producer of silver in
years ago there were very few cell phones
the world and produces about 16 per cent
in use, but the number has risen to over 7
of the world’s production.
billion in use today. The use of rare earth
• China is the second largest silver-producing elements in computers has grown almost
country in the world, accounting nearly 12 as fast as cell phones.
per cent of the world’s total output.
• Many rechargeable batteries are made with
• Australia, Chile and Canada are third, fourth rare earth compounds. Demand for the
and fifth silver-producing countries of the batteries is being driven by demand for
world respectively. portable electronic devices such as cell
• The other silver-producing countries of the phones, readers, portable computers, and
world are Russia, USA, Korea Republic, cameras.
Kazakhstan, Bolivia, Sweden, Indonesia, • Several pounds of rare earth compounds are
Morocco, Turkey, Uzbekistan, Myanmar, in batteries that power every electric
Germany and Spain. vehicle and hybrid-electric vehicle. As
concerns for energy independence, climate
change and other issues drive the sale of
electric and hybrid vehicles, the demand for

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batteries made with rare earth compounds Critical Defense Uses

will climb even faster. • Rare earth elements play an essential role
• Rare earths are used as catalysts, phosphors, in our national defense. The military uses
and polishing compounds. These are used night-vision goggles, precision-guided
for air pollution control, illuminated screens weapons, communications equipment, GPS
on electronic devices, and the polishing of equipment, batteries and other defense
optical-quality glass. All of these products electronics. These give the United States
are expected to experience rising demand. military an enormous advantage. Rare earth
• Other substances can be substituted for rare metals are key ingredients for making the
earth elements in their most important very hard alloys used in armored vehicles
uses; however, these substitutes are usually and projectiles that shatter upon impact.
less effective and costly. • Substitutes can be used for rare earth
• From the 1950s until the early 2000s, cerium elements in some defense applications;
oxide was a very popular lapidary polish. It however, those subsitutes are usually not
was inexpensive and very effective. The as effective and that diminishes military
recent price increases have almost superiority. Several uses of rare earth
eliminated the use of cerium oxide in rock elements are summarized in the table
tumbling and the lapidary arts. Other types below.
of polish, such as aluminum and titanium
oxide, are now used in its place.

GUIDANCE IAS
MORE THAN A COACHING.....

Are These Elements Really “Rare”? extractable concentrations.

• Rare earth elements are not as “rare” as their History of Rare Earth Production and Trade
name implies. Thulium and lutetium are the Pre-1965
two least abundant rare earth elements -
• Before 1965 there was relatively little
but they each have an average crustal
demand for rare earth elements. At that
abundance that is nearly 200 times greater
time, most of the world’s supply was being
than the crustal abundance of gold (1).
produced from placer deposits in India and
However, these metals are very difficult to
Brazil. In the 1950s, South Africa became the
mine because it is unusual to find them in
leading producer from rare earth bearing
concentrations high enough for economical
monazite deposits. At that time, the
extraction.
Mountain Pass Mine in California was
• The most abundant rare earth elements are producing minor amounts of rare earth
cerium, yttrium, lanthanum and oxides from a Precambrian carbonatite.
neodymium (2). They have average crustal
Color Television Ignites Demand
abundances that are similar to commonly
used industrial metals such as chromium, • The demand for rare earth elements saw its
nickel, zinc, molybdenum, tin, tungsten and first explosion in the mid-1960s, as the first
lead (1). Again, they are rarely found in color television sets were entering the

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market. Europium was the essential • High prices also caused manufacturers to do
material for producing the color images. The three things: 1) seek ways to reduce the
Mountain Pass Mine began producing amount of rare earth elements needed to
europium from bastnasite, which contained produce each of their products; 2) seek
about 0.1% europium. This effort made the alternative materials to use in place of rare
Mountain Pass Mine the largest rare earth earth elements; and, 3) develop alternative
producer in the world and placed the United products that do not require rare earth
States as the leading producer. elements.
China Enters the Market • This effort has resulted in a decline in the
• China began producing noteable amounts amounts of rare earth materials used in
of rare earth oxides in the early 1980s and some types of magnets and a shift from rare
became the world’s leading producer in the earth lighting products to light-emitting
early 1990s. Through the 1990s and early diode technology. In the United States, the
2000s, China steadily strengthened its hold average consumption of rare earths per unit
on the world’s rare earth oxide market. They of manufactured product has decreased but
were selling rare earths at such low prices the demand for more products
that the Mountain Pass Mine and many manufactured with rare earth elements has
others throughout the world were unable increased. The result has been higher
to compete and stopped operation. consumption.
Defense and Consumer Electronics Demand China Buying Resources Outside of China
• At the same time, world demand was • Chinese companies have been purchasing
skyrocketing as rare earth metals were rare earth resources in other countries. In
designed into a wide variety of defense, 2009 China Non-Ferrous Metal Mining
aviation, industrial and consumer Company bought a majority stake in Lynas
electronics products. China capitalized on Corporation, an Australian company that has
its dominant position and began restricting one of the highest outputs of rare earth
exports and allowing rare earth oxide prices elements outside of China. They also
to rise to historic levels. GUIDANCE IASthe Baluba Mine in Zambia.
purchased
Rare
China as the Largest Rare Earth Consumer MORE THAN Earth
A COACHINProduction
G..... Outside of China
• In addition to being the world’s largest • Mines in Australia began producing rare
producer of rare earth materials, China is earth oxides in 2011. In 2012 and 2013 they
also the dominant consumer. They use rare were supplying about 2% to 3% of world
earths mainly in manufacturing electronics production. In 2012, the Mountain Pass Mine
products for domestic and export markets. came back into production and the United
Japan and the United States are the second States produced about 4% of the world’s rare
and third largest consumers of rare earth earth elements in 2013. India has been
materials. It is possible that China’s producing about 3% of the world’s supply
reluctance to sell rare earths is a defense of for the past decade. Indonesia, Russia,
their value-added manufacturing sector. Nigeria, North Korea, Malaysia, and
Vietnam are minor producers.
China’s Apex of Production Dominance?
• As of 2013 rare earth assessments were
• The Chinese dominance may have peaked
underway in Australia, Brazil, Canada, China,
in 2010 when they controlled about 95% of
Finland, Greenland, India, Kyrgyzstan,
the world’s rare earth production and prices
Madagascar, Malawi, Mozambique, South
for many rare earth oxides had risen over
Africa, Sweden, Tanzania, Turkey, and
500% in just a few years. That was an
Vietnam [2]. Some of these might result in
awakening for rare earth consumers and
additional production.
miners throughout the world. Mining
companies in the United States, Australia, • The United States Geological Survey
Canada and other countries began to estimates that although China is the world-
reevaluate old rare earth prospects and leader in rare earth production they only
explore for new ones. control about 50% of the world’s reserves.

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This provides an opportunity for other spent uranium solutions, and xenotime
countries to become important producers make up most of the remaining resources.
now that China is not selling rare earth Undiscovered resources are thought to be
materials below the cost of production. very large relative to expected demand.”
Dangers of a Dominant World Producer
• Supply and demand normally determine the OTHER INDUSTRIAL MINERALS
market price of a commodity. As supplies Mica
shrink, prices go up. As prices go higher,
• Mica is used in the electrical industry, in
those who control the supply are tempted
condensers, insulators, heating elements,
to sell. Mining companies see high prices as
radio components, etc. Mica is a transparent
an opportunity and attempt to develop new
material (sheet) and found in white, black
sources of supply.
and brown colour. Mica is occurred in
• With rare earth elements, the time igneous rocks and its commercial types are
between a mining company’s decision to Muscovite (white) and Phlogopite (brown).
acquire a property and the start of Powdered mica is used in coating and
production can be several years or longer. roofing.
There is no fast way to open a new mining
• India is the largest producer of mica and
property.
supplies about 80 per cent of the world’s
• If a single country controls almost all of the output. Bihar, Jharkhand and Rajasthan are
production and makes a firm decision not the principal mica-producing states. Other
to export, then the entire supply of a mica-producing states are West Bengal,
commodity can be quickly cut off. That is a Odisha, Chhattisgarh, Tamil Nadu, Kerala,
dangerous situation when new sources of Karnataka, Haryana and Himachal Pradesh.
supply take so long to develop.
• Brazil is also having large mica deposits. In
• In 2010 China significantly restricted their Brazil mica occurs in a 480 km long and 190
rare earth exports. That was done to ensure km wide belt along the Atlantic coast. Minas
a supply of rare earths for domestic
GUIDANCE
manufacturing and for environmental IAS
Gerais, Sao Paulo, Matto Grasso, Goiaz and
Paribas are having mica-producing areas.
MO RE
reasons. This shift by China triggered panic THAN A COACHING.....
• USA, Canada, Russia, Czech Republic,
buying and some rare earth prices shot up
Slovakia, France, Sweden, Norway, China,
exponentially. In addition, Japan, the United
Australia, South Africa, Tanzania, Zimbabwe
States, and the European Union complained
and Malaysia are other producers of mica.
to the World Trade Organization about
China’s restrictive rare earth trade policies. Asbestos
World Rare Earth Mineral Resources • Asbestos is found in the veins of igneous
rocks and is a silky and fibrous mineral. Its
• “Rare earths are relatively abundant in the
main ores are Chrysolite and Actinolite. It is
Earth’s crust, but discovered minable
used to make fireproof material, industrial
concentrations are less common than for
cloths, protective clothing, etc. It is also
most other ores. U.S. and world resources
used for brake-linings, safety sheets,
are contained primarily in bastnäsite and
roofing sheets and tiles, insulating boards,
monazite. Bastnäsite deposits in China and
firemen’s ropes, special papers and
the United States constitute the largest
asbestos cement. Russia, Ukraine, Canada,
percentage of the world’s rare-earth
South Africa, Zimbabwe, China, Italy and
economic resources, while monazite
Brazil are the main producers.
deposits in Australia, Brazil, China, India,
Malaysia, South Africa, Sri Lanka, Thailand, Phosphate
and the United States constitute the second • Phosphate occurs in sedimentary rocks or
largest segment. as phosphatic nodules. Another source is
• Apatite, cheralite, eudialyte, loparite, bird droppings or guano. The phosphate is
phosphorites, rare-earth-bearing (ion the most important source of phosphorus
adsorption) clays, secondary monazite, and is mainly used in fertiliser. It is also used

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in chemical, drug and food industry. But its 4. ENERGY RESOURCES

primary use is in fertiliser and world’s more • Power or energy resources are the basic
than 80 per cent phosphate fertiliser is made components of economic development and
by it. the amount of energy production is often
• USA is the largest producer of phosphate considered as an index of any country’s
rock. It is mostly found in western states of economic development. The importance of
Idaho, Montana, Utah, Wyoming and power resources is increasing day by day
Florida. The other phosphate- producing and development has nowadays become
countries are Russia, Kazakhstan, Morocco, synonymous with energy use.
Tunisia, Togo, South Africa, Algeria and Types of Energy Resources
Egypt. Some Pacific and Indian Ocean
• Depending upon its source and utilization,
islands also produce phosphate such as
energy can be divided into two broad classes
Carolinas, Mariana, Ruckus, Marshall, Naru,
viz. (i) traditional or non-commercial, and (ii)
and Society islands. The Guano deposits are
commercial energy. The non-commercial
found in Peruvian and Chilean desert in
energy includes fire-wood, charcoal, cow
South America.
dung, agricultural wastes and also animal
Sulphur power. The commercial sources of energy
• Sulphur is used mainly to manufacture comprise coal, oil, natural gas, hydro-
sulphuric acid, which is important in the electricity, nuclear power, as well as wind
heavy chemical industry. Its other uses are and solar power.
in manufacture of fertilisers, insecti-cides, • Energy may also be classified as
explosives, pulp and paper. There are three conventional and non-conventional
sources of sulphur, i.e., native sulphur, depending upon its nature. Coal,
sulphide of metals mainly iron (pyrites) and petroleum, natural gas and electricity are
sulphide ores such as copper, zinc and silver the main sources of conventional energy
bases emitted from volcanoes are highly while solar, wind, tidal, geothermal energy
sulphurous and sulphur thus deposited in and biogas, etc. are some of the outstanding
volcanic regions. The main GUIDANCE
sulphur- IASof non-conventional energy.
examples
producing countries are USA, Mexico, MORE THAN A COACHING.....
Ukraine, Turkmenistan, Kazakhstan,
Uzbekistan, Russia, Italy, Norway and CONVENTIONAL SOURCES OF ENERGY
Germany. COAL
Potash • Coal is a black or brown rock, consisting
• Potash or potassium is a salt, similar to mainly of carbon, which is formed by the
common salt and usually occurring within compressed vegetative remains of past
beds or domes. The potassium minerals ages. Combustible matter in coal consists
commonly occur in association with other of carbon and hydrogen. Much of the
soluble minerals, such as halite, gypsum and present-day high quality coals were
anhydrite, all of which have been deposited during carboniferous era, i.e.,
precipitated from solution in ancient sea. about 300 million years ago. More recent
Potash is used to manufacture soaps, deposits of Tertiary age are usually
explosives, medicine, glass, paper, dyes, composed of lignite or brown coal.
photographic materials as well as in • Coal was, is and will continue to be the
fertilisers. main-stay of power generation in India for
• In the world potash-producing countries are a longtime. It constitutes about 70 per cent
Germany, France, USA, Kazakhstan, of total commercial energy consumed in the
Turkmenistan, Russia, Spain, Canada and country. The power sector and industries
Israel. account for 94 per cent of total
consumption. Manufacturing of iron and
steel and a variety of chemicals largely
depend upon the availability of coal.

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Varieties of Coal is found in Jharkhand, Odisha, West Bengal,

• Depending upon its grade from highest to Chhattisgarh and Madhya Pradesh.
lowest, following four varieties of coal are 3. Lignite. Also known as brown coal, lignite is
generally recognized. a lower grade coal and contains about 40 to
1. Anthracite Coal. This is the best quality of 55 per cent carbon. It represents the
coal and contains 80 to 95 per cent carbon. It intermediate stage in the alteration of
has very little volatile matter and negligibly woody matter into coal. Its colour varies
small proportion of moisture. It is very hard, from dark to black brown. It is friable and
compact, jet black coal having semi-metallic pyritious. Its moisture content is high (over
lustre. It ignites slowly and bums with a nice 35 per cent) so that it gives out much smoke
short blue flame. It has the highest heating but little heat. Its typical qualities make it
value and is the most prized among all the liable to disintegrate on exposure and even
varieties of coal. In India, it is found only in to spontaneous combustion. It is found in
Jammu and Kashmir and that too in small Palna of Rajasthan, Neyveli of Tamil Nadu,
quantity. Lakhimpur of Assam and Karewa of Jammu
and Kashmir.
2. Bituminous Coal. This is the most widely
used coal. It derives its name after a liquid 4. Peat. This is the first stage of transformation
called bitumen released after heating. It of wood into coal and contains less than 40
varies greatly in composition-in-carbon to 55 per cent carbon, sufficient volatile
content (from 40 to 80 per cent)-and matter and lot of moisture. It is seldom
moisture and volatile content (15 to 40 per sufficiently compact to make a good fuel
cent)-so that it is often sub-divided into without compressing into bricks. Left to
several minor divisions such as sub- itself, it burns like wood, gives less heat,
bituminous and bituminous coals. It is emits more smoke and leaves a lot of ash
dense, compact, and is usually of black after burning.
colour. A good bituminous coal is composed
of alternate dull and bright bands. It does World Production and Distribution
not have traces of original GUIDANCE
vegetable
• CoalIAS
is produced in many countries of the
material from which it has been formed. ItsTHAN A COACHING.....
MORE world but its important producers are China,
calorific value is very high due to high
USA, India, Australia, South Africa, Russia,
proportion of carbon and low moisture
Indonesia, Poland, Kazakhstan, Columbia,
content. By virtue of this quality, bituminous
Canada, Germany, V ietnam, UK and
coal is used not only for steam raising and
Ukraine. The following table indicates the
heating purposes but also for production of
coal production in the world:
coke and gas. Most of the bituminous coal

Coal production in the world (in thousand metric tons)(2009)

Country Production Country Production
China 1,992,324 Kazakhstan 86,000
USA 510,918 Ukraine 59,210
India 382,615 Columbia 53,693
Australia 251,136 Canada 29,261
South Africa 242,821 Germany 29,151
Russia 189,758 Vietnam 25,500
Indonesia 119,700 UK 25,093
Poland 101,230

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• ChinaChina ranks first in the world in coal produces some inferior variety of coal.
production. Nearly 38 per cent of world’s 4. The South-Western coalfields: Several small
coal output is from China. All types of coal and isolated coal mines are distributed over
are found, including anthracite, bituminous Sikiang and Yunan region.
coal and lignite.
5.
The Manchurian fields: These coalfields are
scattered in the north-eastern region of
China. The coalfields are located in the
provinces of the Liaoning, Heilungkiang,
GUIDANCE K irinIAS
and Chosen areas. This coal is of
inferior
MORE THAN A CO grade but reserves are substantial.
ACHING.....

USA
The United States of America is the second
largest producer of coal in the world. It
produces about 17 per cent coal of the world.

Although coal occurs in every province of

China, but its greatest concentration is in
Shanxi and Shaanxi (Shansi and Shensi). The
following are the main coalfields of China:
1. The Shansi Shensi fields: The largest
coalfields of China, which produces about
40 per cent of China’s coal.
2. The Shantung-Hopei fields: Around
Shantung and Hopei medium grade coals are
found.
3. The South-Eastern coalfields: This coalfield
extends from Hupei to Fukien. This area

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The main coal-producing areas of USA are coal producer in Australia is New South
as follows: Wales, which contributes more than half of
i. The Appalachian Coalfields: The the Australian production. The other
Appalachian Coalfields, reaching almost notable coal-producing regions are
without a break from northern Queensland, Victoria and Tasmania. Both
Pennsylvania into northern Alabama, bituminous coal and lignite are produced in
contain the finest bituminous coal lands of Australia.
the world. Russia
ii. Eastern Interior Coalfields: The Eastern • Russia is the fifth largest coal-producing
Interior Coalfield is situated in Southern country of the world. Its share in world
Illinois, Southern Indiana and Western production is 5 per cent. The main coal-
Kentuky of USA and is famous for producing areas are Kuznestsk basin, Ural-
bituminous coal. The bituminous coal is not region, Moscow-Tula region, Pechora basin,
of as good quality as that of the Appalachian Eastern Siberia and Northern Siberia.
fields, but it is useful for steam and domestic Europe
purposes.
• In Europe coal-producing countries are
iii. Northern Interior Coalfields: Michigan state Poland, Germany, United Kingdom, France,
is now the centre of coal mining in the Belgium and the Netherlands.
interior province.
Poland
iv. Western Interior Coalfields: This field, like
• Poland is now an important coal-producing
its counterpart, the Eastern Interior field
country not only of Europe but also of the
across the Mississippi, has important coal
world and ranks 9th in the world. It produces
deposits of bituminous and subbituminus.
2.5 per cent of the world’s coal output. The
The coal in Western Interior field is below
major coalfields of Poland are Upper Silesia,
average in quality.
Krakuw and Dombrawa. Anthracite coal is
v. Southern Interior Coalfields The Southern mined in Walbrzych of Oder basin.
Interior Coalfield is of little importance even
locally because of the poor GUIDANCE
quality.
GermanyIAS
Southern Interior is the extension MORE • A COGermany
ofTHAN ACHING..... is another main coal-producing

western fields in Texas. It extends from country of Europe. Ruhr, Saar, Sexony and
Central Iowa to Central Texas. Silesia are the main coalfields of
Germany.The Ruhr Region is having good
vi. Rocky Mountain Coalfields Most of the
quality of coking coal. The coal belt of this
lignite coal is found in Rocky mountain field,
region is 65 km long and 16 km wide and it
which occurs in various scattered localities.
extends in the east and west of Ruhr. Saar
Only two-thirds of the United States coal
Region is having bituminous coalfields. Its
comes from western fields, along the
main deposits are in Rhineland. Saxony
eastern rim of Rockies in Colorado,
Coalfield is located in eastern part of
Wyoming, Idaho, Arizona, Utah and
Germany. Halle, Magdeburg and Leapzig are
Montana.
the main coalfields.
vii. Pacific Coast Coalfields In the extreme far
United Kingdom
west of the United States between Sierra
Nevada and Ellenburg in California, Oregon • There was a time when UK was the largest
and Washington, are the most extensive coal producer in the world. But its
fields, covering more than 2000 sq km and production declined gradually due to high
producing low grade coal. production cost, low productivity,
competition with other energy sources and
Australia
other countries and also due to great depth
• Australia ranks 4th in coal production in the of coal mines. The main coalfields of UK are:
world and its contribution in world’s
(a) The Scottish Lowlands: Situated between
production is 6 per cent. In 2007, it produced
Grampian highland and Southern highland,
251 million metric tons of coal. The largest
this Clyde basin is one of the oldest and

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consistent coal-producing regions. production. The mines are however, very

(b) Northumberland-Durham Region: Situated deep and production cost is significantly
in the eastern slope of Penine range, this high.
area still contributes significant amount of South Africa
good quality coal. • South Africa is the leading coal-producing
(c) South Wales: High quality coal is sent to the country of Africa and ranks 5th in the world.
industries in Bristol and Somerset region. During the last few years coal production in
(d) Lancashire: Huge amount of bituminous and South Africa has witnessed a significant
coking coal is produced. increase. Much of its coal production comes
from Transvaal, Netal and Cape Province.
(e) Yorkshire: Scattered coal deposits are found
The major coal mines are Middleburg,
in Warwickshire, Nottingham region.
Withbank and New Castle.
(f) West Midland: Here important coalfields are
Other Countries
South Staffs, Potteries, etc.
• Apart from above mentioned countries
Belgium
other significant coal-producing countries
• Besides Franco-Belgian coalfields, are South Korea, North Korea, Vietnam,
Kempenland mines also contribute some Indonesia, Philippines, Thailand and
coal. Belgium was a major producer of coal Malaysia in Asia; Canada, Zimbabwe, Zaire,
but presently production is suffering due Mozambique, Zambia and Nigeria in Africa;
to depletion of deposits. Chile, Peru, Columbia, Brazil and Argentina
France in South America.
• France is self-sufficient in coal-production. Coal Reserves of the World
Most of its coal is extracted from Central •
According to an estimate the total coal
Massif Nord, St. Etienne region. reserves of the world is 90,906 crore metric
Kazakhstan tons and its largest share exists in Europe
• Kazakhstan is now considered to be an and Asia, but USA is the single largest
important coal-producing country.GUIDANCE This IAS
country having more than 27 per cent of the
coal reserves. The following table indicates
country is believed to have huge reserves
MORE THAN A COACHING.....
of unexploited coal. It is now the 9th largest the coal reserves of the top ten countries of
coal-producing country in the world. Major the world:
coal deposits here are: Country Total reserves World’s
1. Karaganda Basin: It is comparatively a new (in crore percentage
field where production started only in 1970. metric tons)
Most of the mines are located conveniently, USA 24,664 27.1
so cheap transpor-tation of coal to industrial
Russia 15,701 17.3
regions of Ukraine is an added advantage.
China 11,450 12.6
2. Ekibastuz Basin: Coal mining started here in
the 1950s. It is, practically, a continuation of India 92,445 10.2
Karaganda coal mines, situated in the north- Australia 78,500 8.6
eastern part of Kazakhstan. The output of South Africa 48,750 5.4
this coal-field is increasing significantly.
Ukraine 34,153 3.8
Ukraine
Kazakhstan 31,279 3.4
• Ukraine is having 10th place in the coal
Poland 14,000 1.5
production of the world. After separation
from former USSR, coal production has Brazil 10,113 1.1
suffered badly but, again, after some • It becomes clear from Table that USA is
government assistance, coal production having 27.1 per cent of coal reserves of the
started increasing. The major coalfield is world followed by Russia and China having
Donetsk basin or Donbas. These mines 17.3 and 12.6 per cent coal reserves
produce 90 per cent of the Ukraine coal respectively. India is also significant in terms

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of coal reserves with 10.2 per cent. Other sea organisms flourished in the gulfs,
important countries having coal reserves estuaries, deltas and the land surrounding
are Australia, South Africa, Ukraine, them during this period. The decomposition
Kazakhstan, Poland and Brazil. of organic matter in the sedimentary rocks
has led to the formation of oil. Though oil is
mainly found in sedimentary rocks, all
PETROLEUM OR MINERAL OIL
sedimentary rocks do not contain oil. An oil
• The word ‘petroleum’ has been derived reservoir must have three pre-requisite
from two Latin words Petra (meaning rock) conditions :
and Oleum (meaning oil). Thus petroleum
(i) porosity so as to accommodate sufficiently
is oil obtained from rocks; particularly
large amounts of oil;
sedimentary rocks of the earth. Therefore,
it is also called mineral oil. Technically (ii) permeability to discharge oil and/or gas
speaking, petroleum is an inflammable when well has been drilled;
liquid that is composed of hydrocarbons (iii) the porous sand beds sandstone,
which constitute 90 to 95 per cent of conglomarates of fissured limestone
petroleum and the remaining is chiefly containing oil should be capped by
organic compounds containing oxygen, impervious beds so that oil does not get
nitrogen, sulphur and traces of organo- dissipated by percolation in the surrounding
metallic compounds. Crude petroleum rocks.
consists of a mixture of hydrocarbons — • Oil on a commercial scale is usually found
solid, liquid and gaseous. These include where the sedimentary rock strata are
compounds belonging to the paraffin series inclined and folded; in a sort of chamber or
and also some unsaturated hydrocarbons reservoir, in the highest possible situation
and small proportion belonging to the e.g. crests of anticlines. Normally, oil is
benzene group. associated with water. Being lighter than
water (specific gravity of 0.8 to 0.98), it
Origin and Occurrence of Petroleum collects in the anticlines or fault traps above
•
GUIDANCE
Petroleum has an organic origin and is found
the IAS
surface of water. Gas is still lighter and
occurs
MORE THAN A CO above oil. Thus on drilling an oil well,
ACHING.....
in sedimentary basins, shallow depressions
one finds gas followed by oil, although gas
and in the seas (past and present). Most of
seepage is not always a sure indication of
the oil reserves in India are associated with
an oil reservoir.
anticlines and fault traps in the sedimentary
rock formations of tertiary times, about 3
million years ago. Some recent sediments, World Petroleum Reserves, Production and
less than one million years old also show Distribution
evidence of incipient oil. Oil and natural gas • The West Asia or Middle East is having the
originated from animal or vegetable matter largest petroleum reserves of the world,
contained in shallow marine sediments, which is about 60 per cent of the world’s oil
such as sands, silts and clays deposited reserves. The total estimated world’s oil
during the periods when land and aquatic reserve in 2008 was 1,243. The countries
life was abundant in various forms, having large petroleum reserves are Saudi
especially the minor microscopic forms of Arabia, Canada, Iran, Iraq, Kuwait, UAE,
flora and fauna. Conditions for oil formation Venezuela, Russia, Libya, Nigeria,
were favourable especially in the lower and Kazakhstan, USA, China, Qatar, Algeria,
middle Tertiary period. Dense forests and Brazil and Mexico.

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Reserves Production
countries 10 bbl
9
10 m
9 3
10 bbl/d
6
m 3d
Saudi Arabia 267 42.4 10.2 1,620
Canada 179 28.5 3.3 520
Iran 138 21.9 4.0 640
Iraq 115 18.3 2.1 330
Kuwait 104 16.5 2.6 410
UAE 98 15.6 2.9 460
Venezuela 87 13.8 2.7 430
Russia 60 9.5 9.9 1,570
Libya 41 6.5 1.7 270
Nigeria 36 5.7 2.4 380
Kazakhstan 30 4.8 1.4 220
USA 21 3.3 7.5 1,190
China 16 2.5 3.9 620
Qatar 15 2.4 0.9 140
Algeria 12 1.9 2.2 350
Brazil 12 1.9 2.3 370
Mexico 12 1.9 3.5 560
World Total 1,243 197.6 63.5 10,100
GUIDANCE
The petroleum-producing countries of the world can beIAS
grouped into five geographical regions:
MORE THAN A COACHING.....
1. West Asia or Middle East Region 2. American Region
3. Russian Region 4. Eastern and South Asian Region
5. African Region

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West Asia or Middle East Region and it produces more than 12 per cent of
• The West Asian region is the largest the total world output of oil. The first oil
petroleum-producing region of the world. well in Saudi Arabia was started in 1938 at
It also has the largest oil reserves of the Dammam. The major oilfields of Saudi
world, which is more than 60 per cent of the Arabia are Ghawar, Abquiaq, Qatif,
total world reserves. The main oil-producing Dammam, Ain Dar, Abu Hadriya, Kharsaniya,
countries of this region are Saudi Arabia, etc. Ghawar is the largest oilfield in the
Iran, Iraq, Kuwait, UAE, Qatar, Bahrain, Oman world which spreads over 10,000 sq km area.
and Abu Dhabi, etc. The crude oil is refined at Ras Tanura and
sent through 1,700 km long pipeline to Sidon
• Saudi Arabia: The largest oil producer, not
for further export.
only of the Middle East but also of the world

GUIDANCE IAS
MORE THAN A COACHING.....

• Iran: Iran is the second largest oil producer in Iraq are Kirkuk, Mosul, Daura and Az
of the Middle East and ranks 4th in the Zubayr.
world. It produces about 5.3 per cent of
• United Arab Emirates: UAE, which is
world oil production and its oil reserves are
comprised of Abu Dhabi, Dubai, Sharjah,
8.6 per cent of the world. The main oilfields
Ajman, etc., has about 10 per cent of the
of Iran are Masjid-i-Sulaiman, Najt & Shah,
world reserves. The leading oilfields are
Aghajari, Lali, Bahregan, Eyden & Naftun,
Fateh, Bumusa, A1 Bundag, Murban, Bu-
Gach Saran, Hajt & Kel, etc.
hasa, etc.
• Kuwait: Kuwait is having about 8 per cent of
The other oil producers of the Middle East
oil reserves of the world and produces more
region are Qatar, Bahrain and Oman.
than 3 per cent of the world’s total oil
production. The oilfields are situated American Region
almost over entire Kuwait. The Burghan field • American petroleum-producing region is
is the richest oilfield. The other major having three distinct areas, i.e., (i) North
oilfields are Mina-al-ahmadi, Wafra, America, (ii) Central America, and (iii) South
Burgan, Magwa, Sabriya, Mingish, etc. America.
• Iraq: Iraq has more than 7 per cent of the • In North America, USA and Canada are the
world reserves of petroleum and ranks 14th petroleum-producing countries. On the
in oil production in the world. Major oilfields other hand, Mexico is the major producer

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of petroleum; while in South America, Mexico

Venezuela, Brazil, Columbia, Peru and • Mexico produces about 4.8 per cent of the
Argentina are the main producers. world’s total petroleum. Tampico and
United States of America Tuxpum are the two oilfields where oil
• USA produces 7.5 per cent oil in the world. production was started first in year 1901. The
It also possesses 5.4 per cent oil reserves of other oilfields of Mexico are Tehuantepec
the world. The six important oil-producing in the South and Campeche Sound in the
regions of USA are: Gulf of Mexico.
i. The North-eastern Region: This is the oldest Caribbean Countries
of the crude oil regions on earth, stretching • In Central America apart from Mexico,
from Tennessee to New York in the north Caribbean countries also have oil reserves
east. The oil wells are scattered over the and produce limited quantity of oil. Trinidad
states of Tennessee, Kentucky, Ohio, has proven reserves of over 600 million
Illinois, Indiana, West V irginia, barrels of oil and sizeable quantities of
Pennsylvania and New York. natural gas.
ii. The Central Region: The central oil-bearing South America
region covers the states of Oklahoma, • In South America, Venezuela, Columbia,
Kansas, Texas and Missouri. Peru, Argentina and Chile are the oil-
iii. The South-eastern Gulf Region: In this region producing countries.
oilfields are located in Texas, Louisiana, •
Venezuela is a leading oil-producing country
Mississippi, Alabama, Georgia and Florida not only of South America but also of the
provinces. world. In the world its position is 9th and it
iv. The Rocky Mountain Region: The Rocky produces about 4.2 per cent oil of the world
Mountain region contains an enormous and 68 per cent of South America. In terms
amount of petroleum reserve. North of oil reserves, it has per cent of the world’s
Dakota, Montana, Wyoming, Utah, Colorado total oil reserves. The major oil-producing

oilfields.
GUIDANCE
and New Mexico have several small
IAS
areas of Venezuela are Maracaibo Bay and
Orinoco basin.
MORE THAN A COACHING.....
v. The South-western Region: In the south- • Columbia is self-sufficient in oil production.
western part of the United States, from just Maracaibo basin and Magdalena valley are
the Gulf of California, considerable amount the important oil-producing areas.
of crude oil is extracted from the wells. • Peru, Argentina and Chile are also producing
vi. The Kuparuk Oilfield in Alaska: This is a new limited quantity of petroleum.
oilfield where production started in the Russian Region
1980s. It has been estimated that the total
• In undivided USSR oil production was
reserve of this field may exceed the reserve
started as early as in 1870, around the shores
of even the north-eastern region.
of the Caspian Sea. In the 1930s three-
Canada quarters of the oil production came from
• Canada is having the second largest oil the Baku fields and another 15 per cent from
reserves in the world, after Saudi Arabia. the Grozny and Maikop fields. The new
Its estimated reserve of oil is 179 (109 bbl). centres have been discovered in Volga and
In terms of production Canada accounts for Urals. Presently, the main oilfields are:
about 3 per cent of the world’s oil output. It (i) Volga-Caspian Region
is a surplus oil-producing country and
(ii) Kamchatka-Sakhalin Region
exports some of its production. Alberta
province provides three-fourths of its (iii) Ob-Lena Basin
production. The other oil-producing states (iv) Pechora Region
are Saskatchewan, British Columbia and • Kazakhstan is having 30 (109 bbl) oil reserves
Manitoba. and ranks 11 th in the world oil reserve

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countries. Its annual production was 220 Indonesia

m3d in 2008. • Indonesia is one of the important oil-
• Ukraine is also having petroleum. Much of producing countries of the South-East Asia.
the oil is extracted from Dnieper basin and Its oilfields are located in Sumatra, Djambi,
Crimean Peninsula. Periklanan, Balik, Papan, Rantau, etc.
The Eastern and South Asian Region Indonesia is an active member of OPEC and
exports oil to many countries.
China
African Region
• In recent years, China has increased its oil
production and in 2008, its position in world • In Africa only northern region or Sahara and
oil production was 6th. The major oilfields Sub-Sahara region are having oil deposits.
of China are situated at Karamai and Lengue The main oil-producing countries of Africa
in Sinkiang, Taching or Dakang in are: Libya, Algeria, Nigeria and Egypt.
Hairlungkiang, Yumen oilfields in north- Libya
west Kansu, etc. China has struck an oil • Since the discovery of oil in 1957, Libya
bonanza in the north continental shelf of became a consistent producer of
the South China Sea. The reserves may be petroleum. The total oil reserve of Libya is
one of the world’s largest found through around 3 per cent of global reserve. Bulk of
seismic surveys over 320,000 sq km of the the product is exported to foreign
South China Sea. Oil deposits are also being countries. The leading oilfields in Libya are
worked near Zhanjiang in Gulf of Tonkin in Dahra, Beda and Zelton at Gulf of Sidra.
Southern Guangdong province.
Algeria
Japan
• Algeria is another significant producer of
• In Japan oilfields are situated in two petroleum where much of the national
different areas. These are: income comes from oil-export. Leading
(i) North-Western Honshu Oilfields: In this area oilfields in Algeria are Edjile, Hassi
Negate and Akita are important oil- Messaoud and Hassi R’Mel.
GUIDANCE
producing centres in north-western Nigeria IAS
Honshu, which produces about 90 perMOcentRE THAN A COACHING.....
• Niger delta in Nigeria contains enormous
of the Japan’s oil.
amount of oil. Boguma, Okrika and Bonny
(ii) Hokkaido Oilfields: There are several are the leading producers. It also exports a
oilfields situated in Hokkaido especially in good amount of crude oil.
south-western coastal region. The notable
Egypt
oilfields are Ishihara, Rumoi, Iburi and
Atsuma. • Egypt is self-sufficient in oil production.
Major oil wells are confined in Ras Matarma
• However, Japan is deficient in petroleum
and Ras Gharib in Sinai peninsula.
resources and only about 0.3 per cent of the
nation’s entire oil requirement is produced
domestically. In other words, Japan Other Countries
depends almost completely on imported • Apart from the above mentioned petroleum
crude oil. regions/countries, the other oil-producing
Malaysia countries of the world are United Kingdom,
• Malaysia is one of the main oil-producing Romania, Norway, France, Netherlands,
countries of South-East Asia. The Poland and Germany. All these countries are
petroleum industry is becoming European countries and produce very
significantly important to the economy of limited quantity of petroleum.
the nation. Four oil strikes have been made NATURAL GAS
of the coast of Peninsular Malaysia, three • Natural gas usually accompanies petroleum
of Sabah and one of Sarawak. Malaysia used accumulations. Whenever a well for oil is
to export petroleum to Japan, Australia, drilled, it is natural gas which is available
Philippines, Thailand and New Zealand.

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before oil is struck. Country Production Percentage of

(in billion the world
World Reserves, Production & Distribution of cubic feet)
Natural Gas Russia 23,386 21.30
Natural Gas Reserves USA 20,377 18.56
• The known natural gas reserves in the world Canada 6,037 5.50
are about 6,254 trillion cubic feet. Most of Iran 4,107 3.74
these reserves are located in Russia, Iran,
Norway 3,503 3.19
Qatar, UAE, Saudi Arabia, USA, etc. The
following table indicates the natural gas Algeria 3,055 2.78
reserves of the world: Netherlands 2,991 2.72
World reserves of natural gas (2009) Saudi Arabia 2,841 2.59
Country Reserves in Percentage Qatar 2,719 2.48
trillion cubic of the world China 2,685 2.45
feet Turkmenistan 2,490 2.28
Russia 1,680.000 26.86 Britain 2,469 2.25
Iran 991.600 15.85 Indonesia 2,472 2.25
Qatar 891.945 14.26 Uzbekistan 2,387 2.17
Saudi Arabia 258.470 4.13 Malaysia 2,024 1.84
USA 237.726 3.80
UAE 214.400 3.43 Russia
Nigeria 184.160 2.94 •Russia is the world’s largest producer of
Venezuela 170.920 2.73 natural gas and produces 21.30 per cent of
the world’s total natural gas production. The
Algeria 159.000 2.54
GUIDANCE IAS
country is developing the Saratov deposits
Iraq 111.940 1.79 ofACH
MORE THAN A CO natural
ING..... gas, which is carried to Moscow
Indonesia 106.000 1.69 by a 835 km long pipeline. Dashava Kiev line
Turkmenistan 94.000 1.50 supplies gas to the capital of Ukraine. Great
deposits of natural gas have been
Kazakhstan 85.000 1.36
discovered in Stavropol territory. A gasline
Malaysia 83.000 1.33 stretching for 1,280 kilometres has been laid
Norway 81.680 1.30 between Stavropol to Moscow. It is the
• It becomes clear from the above table that longest gasline in Russia. Other natural gas-
Russia is having 26.86 per cent natural gas producing regions of Russia are Estomia,
reserves of the world, followed by Iran with Volga basin, Sakhalin Island, Pechora valley,
15.85 per cent and Qatar 14.26 per cent. etc.
Saudi Arabia is having 4.13 per cent USA
reserves, while USA is having 3.80 per cent. • United States of America is the second
Other countries having natural gas reserves largest natural gas producer and in 2008
are UAE, Nigeria, Venezuela, Algeria, Iraq, produced 18.56 per cent of the world’s total
Indonesia, Turkmenistan, Kazakhstan, production. In USA gas is mostly drilled from
Malaysia and Norway. the following regions:
Production and World Distribution 1. Appalachian Basin
• The total production of natural gas in the 2. San Juan Basin
world was 109,789 billion cubic feet in 2008.
3. California Area
The following table shows the production
of natural gas in the world: 4. Permian Basin

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Canada country.
• Canada is a significant producer of natural Europe
gas, securing third place in the world with • In Europe Norway, United Kingdom, Italy,
5.50 per cent of the world’s production. The France and Netherlands are the important
major gas fields of Canada are situated at natural gas-producing countries.
Alberta and British Columbia States.
Africa
West Asian Region
• Algeria is the leading natural gas producer.
In West Asia, Saudi Arabia, Iran, UAE, Qatar It contributes more than 70 per cent of the
and Iraq are the main natural gas producers. total African output. Reserves of Algeria are
• Iran possesses the second position in world’s the ninth largest in the world.
gas reserve (991 trillion cubic feet). In 2008, • Egypt, Nigeria, Gabon, South Africa and
it produced 4107 billion cubic feet of natural Tunisia are other natural gas-producing
gas. countries of Africa.
• Saudi Arabia is fourth in gas reserves in the • Some other notable natural gas-producing
world and its natural gas production in 2008 countries are Turkmenistan, Uzbekistan,
was 2841 billion cubic feet. Kazakhstan and Venezuela.
• UAE is 6th in terms of natural gas reserves
with 214 trillion cubic feet. Bu-Musa, A1
Electricity
Bandus are the major gas fields.
•Although India set up its first power plant
• Qatar and Iraq are other important natural
over a century ago and the electrification of
gas-producing countries in the world.
Kolkata began within just a decade after that
Eastern and Southern Asian Countries of London, power development could truly
 China has emerged as a major natural gas- take off only after Independence. The
producing country. In 2008, China’s power sector registered an impressive
production of natural gas was 2685 billion growth by over 100 times during 63 years
cubic feet. Thus China ranks 10th in the from 1950-51 to 2013-14. The installed
world in gas production. GUIDANCE IAS
capacity rose from 2.3 thousand MW in 1950-
MORE THAN A COACHING.....
 Indonesia is another leading gas-producing 51 to 243.0 thousand MW by 2013-14 and
country with 13th position in the world. In generation from 6.6 billion kWh to 961.5
2008, it produced 2472 billion cubic feet of billion kWh during the same period.
gas. However, India still lags far behind
regarding consumption of electricity. The
 Bangladesh is another leading gas-
per capita consumption in India was only
producing country. Here, huge natural gas
393 kWh in 2011-12 as against 3,481 kWh in
reserves have been found in the eastern
Britain, 6,434 kWh in Sweden and 6,550 kWh
hilly region.
in the USA and the world average of-1,000
 Pakistan is also a surplus gas-producing kWh.

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World Electricity Production by Source 2016

• Thirteen countries in 2017 produced at least one-quarter of their electricity from nuclear. France
gets around three-quarters of its electricity from nuclear energy; Hungary, Slovakia and Ukraine
get more than half from nuclear, whilst Belgium, Sweden, Slovenia, Bulgaria, Switzerland,
Finland and Czech Republic get one-third or more. South Korea normally gets more than 30% of
its electricity from nuclear, while in the USA, UK, Spain, Romania and Russia about one-fifth of
electricity is from nuclear. Japan is used to relying on nuclear power for more than one-quarter
of its electricity and is expected to return to somewhere near that level.
Nuclear Generation by Country 2017

GUIDANCE IAS
MORE THAN A COACHING.....

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World Distribution • In Germany, seven nuclear power reactors

• All parts of the world are involved in nuclear continue to operate, with a combined net
power development, and some examples capacity of 9.4 GWe. In 2017, nuclear
are outlined below. generated 12% of the country’s electricity.
North America • Germany is phasing out nuclear generation
by about 2022 as part of
• Canada has 19 operable nuclear reactors,
its Energiewende policy. Energiewende,
with a combined net capacity of 13.5 GWe.
widely identified as the most ambitious
In 2017, nuclear generated 15% of the
national climate change mitigation policy.
country’s electricity.
• The Netherlands has a single operable
All but one of the country’s 19 nuclear
nuclear reactor, with a net capacity of 0.5
reactors are sited in Ontario.
GWe. In 2017, nuclear generated 3% of the
• Mexico has two operable nuclear reactors, country’s electricity.
with a combined net capacity of 1.6 GWe. In
• Spain has seven operable nuclear reactors,
2017, nuclear generated 6% of the country’s
with a combined net capacity of 7.1 GWe. In
electricity.
2017, nuclear generated 21% of the country’s
• The USA has 98 operable nuclear reactors, electricity.
with a combined net capacity of 99.4 GWe.
• Sweden has eight operable nuclear
In 2017, nuclear generated 20% of the
reactors, with a combined net capacity of
country’s electricity.
8.4 GWe. In 2017, nuclear generated 40% of
• Over the last 15 years, improved operational the country’s electricity.
performance has increased utilisation of US
• The country is closing down some older
nuclear power plants, with the increased
reactors, but has invested heavily in
output equivalent to 19 new 1000 MWe
operating lifetime extensions and uprates.
plants being built.
• Switzerland has five operable nuclear
South America
reactors, with a combined net capacity of
• Argentina has three reactors, with a
combined net capacity of 1.7 GWe. GUIDANCE
In 2017, IAS
3.3 GWe. In 2017, nuclear generated 33% of
the country’s electricity.
MORE THAN A COACHING.....
the country generated 5% of its electricity
• The UK has 15 operable nuclear reactors,
from nuclear.
with a combined net capacity of 8.9 GWe. In
• Brazil has two reactors, with a combined net 2017.
capacity of 1.9 GWe. In 2017, nuclear
generated 3% of the country’s electricity.
Central and East Europe, Russia
West & Central Europe
• Armenia has a single nuclear power reactor
• Belgium has seven operable nuclear
with a net capacity of 0.4 GWe. In 2017,
reactors, with a combined net capacity of
nuclear generated 33% of the country’s
5.9 GWe. In 2017, nuclear generated 50% of
electricity.
the country’s electricity.
• Belarus has its first nuclear power plant
• Finland has four operable nuclear reactors,
under construction, and plans to have the
with a combined net capacity of 2.8 GWe. In
first of two Russian reactors operating by
2017, nuclear generated 33% of the country’s
2019. At present almost all of the country’s
electricity. A fifth reactor – a 1720 MWe EPR
electricity is produced from natural gas.
– is under construction, and there are plans
to build a Russian VVER-1200 unit at a new • Bulgaria has two operable nuclear reactors,
site (Hanhikivi). with a combined net capacity of 1.9 GWe. In
2017, nuclear generated 34% of the country’s
• France has 58 operable nuclear reactors,
electricity.
with a combined net capacity of 63.1 GWe.
In 2017, nuclear generated 72% of the • The Czech Republic has six operable nuclear
country’s electricity. reactors, with a combined net capacity of
3.9 GWe. In 2017, nuclear generated 33% of

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the country’s electricity. 2017, nuclear generated 4% of the country’s

• Hungary has four operable nuclear reactors, electricity.
with a combined net capacity of 1.9 GWe. In • The country continues to dominate the
2017, nuclear generated 50% of the country’s market for new nuclear build. At the start
electricity. of 2019, 13 of the 57 reactors under
• Romania has two operable nuclear reactors, construction globally were in China. In 2018
with a combined net capacity of 1.3 GWe. In China became the first country to
2017, nuclear generated 18% of the country’s commission two new designs – the AP1000
electricity. and the EPR. China is commencing export
marketing of the Hualong One, a largely
• Russia has 36 operable nuclear reactors,
indigenous reactor design.
with a combined net capacity of 28.0 GWe.
In 2017, nuclear generated 18% of the • The strong impetus for developing new
country’s electricity. nuclear power in China comes from the
need to improve urban air quality and
• The strength of Russia’s nuclear industry is
reduce greenhouse gas emissions. The
reflected in its dominance of export
government’s stated long-term target, as
markets for new reactors. The country’s
outlined in its Energy Development Strategy
national nuclear industry is currently
Action Plan 2014-2020 is for 58 GWe capacity
involved in new reactor projects in Belarus,
by 2020, with 30 GWe more under
China, Hungary, India, Iran and Turkey, and
construction.
to varying degrees as an investor in Algeria,
Bangladesh, Bolivia, Indonesia, Jordan, • India has 22 operable nuclear reactors, with
Kazakhstan, Nigeria, South Africa, Tajikistan a combined net capacity of 6.2 GWe. In 2017,
and Uzbekistan among others. nuclear generated 3% of the country’s
electricity.
• Slovakia has four operable nuclear reactors,
with a combined net capacity of 1.8 GWe. In • The Indian government is committed to
2017, nuclear generated 54% of the country’s growing its nuclear power capacity as part
electricity. A further two units are under of its massive infrastructure development
construction, with the first unitGUIDANCE
due to enter IAS The government in 2010 set an
programme.
ambitious
MORE THAN A CO
commercial operation before the end of the ACH ING..... target to have 14.6 GWe nuclear

decade. capacity online by 2024. At the start of 2019

seven reactors were under construction in
• Slovenia has a single operable nuclear
India, with a combined capacity of 5.4 GWe.
reactor with a net capacity of 0.7 GWe. In
2017, Slovenia generated 39% its electricity • Japan has 37 operable nuclear reactors, with
from nuclear. a combined net capacity of 36.1 GWe. At the
start of 2019, only nine reactors had been
• Ukraine has 15 operable nuclear reactors,
brought back online, with a further 17 in the
with a combined net capacity of 13.1 GWe.
process of restart approval, following
In 2017, nuclear generated 55% of the
the Fukushima accident in 2011. In the past,
country’s electricity.
30% of the country’s electricity has come
• Turkey commenced construction of its first from nuclear; in 2017, the figure was just
nuclear power plant in April 2018, with start 4%.
of operation expected in 2023.
• South Korea has 23 operable nuclear
Asia reactors, with a combined net capacity of
• Bangladesh started construction on the first 22 GWe. In 2017, nuclear generated 27% of
of two planned Russian VVER-1200 reactors the country’s electricity.
in 2017. It plans to have the first unit in • South Korea has four new reactors under
operation by 2023. The country currently construction domestically as well as four in
produces virtually all of its electricity from the United Arab Emirates. It plans for two
fossil fuels. more, after which energy policy is uncertain.
• China has 45 operable nuclear reactors, with It is also involved in intense research on
a combined net capacity of 43.0 GWe. In future reactor designs.

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• Pakistan has five operable nuclear reactors, • The challenges and recent activities mainly
with a combined net capacity of 1.4 GWe. In result from the development of
2017, nuclear generated 6% of the country’s technologies that use renewable energy
electricity. Pakistan has two Chinese sources and activities aimed at reducing the
Hualong One units under construction. emission of harmful substances into the
Africa atmosphere.
• South Africa has two operable nuclear • The new challenges are a decisive impulse
reactors, with a combined net capacity of for introducing changes in power plants and
1.8 GWe, and is the only African country combined heat and power plants, as well as
currently producing electricity from nuclear. for the implementation and continuous
In 2017, nuclear generated 7% of the development of new technologies allowing
country’s electricity. South Africa remains for the electricity and heat production in the
committed to plans for further capacity, but least harmful way to the environment.
financing constraints are significant. • In recent years, many activities have been
Middle East observed to reduce pollutant emissions and
optimize the performance of thermal power
• Iran has a single operable nuclear reactor
plants. Ensuring a continuous supply of
with a net capacity of 0.9 GWe. In 2017,
electricity and heat is necessary and
nuclear generated 2% of the country’s
requires a continuous monitoring of all
electricity.
processes and conduct of maintenance and
• The United Arab Emirates is building four optimization works.
1450 MWe South Korean reactors at a cost
• Based on the data provided by International
of over $20 billion, and is collaborating
Energy Agency , we can observe how
closely with the International Atomic Energy
electricity generation during almost last
Agency and experienced international
50 years is changing. Total electricity
firms.
generation was increased almost 6 times,
Emerging nuclear energy countries reaches in 2015 value 24,255 TWh, with the
• As outlined above, Bangladesh, GUIDANCE
Belarus, IAS
share of fossil fuel on the level around 66%
Turkey and the United Arab Emirates M are allTHAN A CO(75%
ORE in 1973). The share of renewable
ACHING.....
constructing their first nuclear power plants. energy sources includes mainly geothermal,
A number of other countries are moving solar, wind, ocean, biofuels, and waste was
towards use of nuclear energy for power increased from 0.6 to 7.1% of total
production. For more information, see page electricity generation sources. Despite
on Emerging Nuclear Energy Countries. these changes and the intensive
development of technologies based on
renewable energy sources, fossil fuels still
THERMAL ELECTRICITY dominate. Current trends indicate the
• The largest share of sources for electricity continuous use of coal (39.3% in 2015) as
generation still belongs to fossil fuels such the main source and a large increase of
as coal, natural gas, and oil. Conventional natural gas utilization (22.9% in 2015).
thermal power plants based on the fossil
fuel combustion are currently facing new
challenges.

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Different challenges for a thermal power plant • Waste management - Thermal power plant
are :- that use coal as fuel face the problem of
• Availability of vast area of land- Thermal waste dispose. Fly ash , bottom ash etc.
power plants are gigantic in size and require result in lungs and other diseases when they
vast area of land to set up different units. are inhaled.
• Availability of natural resources- Its an • Water used by cooling towers- Electric
GUIDANCE
important factor as the availability of IAS
companies prefer to use cooling water from
the ocean, a lake, or a river, or a cooling
resources in abundance and in good M reach
ORE THAN A COACHING.....
makes the production more economical. pond, instead of a cooling tower. This type
of cooling can save the cost of a cooling
• Availability of Water- Primary mover in these
tower and may have lower energy costs for
plants are usually steam driven, so it is
pumping cooling water through the plant’s
important that the plant has good supply of
heat exchangers. Water consumption by
water.
power stations is a developing issue.
• Boiler design and efficiency- Boilers are one
• Environmental impacts- Coal and coal waste
of the most important part of the plant,
products releases toxic chemicals including
selecting the design is the crucial part as it
arsenic, lead, mercury , cadmium , zinc ,
directly affect the overall efficiency of
copper, selenium , barium , chromium
plant.
which are dangerous when released in
• Turbine and Re-heaters- The most technical atmosphere. Approximately 75 Tg/S per
challenge in power plant. Turbines must be year of Sulfur Dioxide (SO2) is released from
designed in such way so that they work at burning coal. After release, the Sulfur
high pressure and as well as low pressure. Dioxide is oxidized to gaseous H2SO2 which
• Safety of labors- Thermal power plant are scatters solar radiation, hence their increase
one of the most hazardous place to work. in the atmosphere exerts a cooling effect
Safety of labors should be given top priority on climate that masks some of the warming
as they work under elevated temp and high caused by increased greenhouse gases.
pressure steam. Release of SO2 also contributes to the
widespread acidification of ecosystems.

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3. Energy crisis According to the Wikipedia

“An energy crisis is any great bottleneck (or
price rise) in the supply of energy resources
Energy crisis is essentially the problem of to an economy. In popular literature though,
consuming more energy than one can it often refers to one of the energy sources
produce, thereby creating an energy used at a certain time and place, particularly
deficiency. It can further lead to a situation those that supply national electricity grids
where access to energy is difficult and not or serve as fuel for vehicles. “
long term self-sustaining.

GUIDANCE IAS
Background stoppage
MORE THAN A COACHING.....of
production or supply of oil, can
Energy crisis can be brought about by many cause major upheavals in economy.
factors: organized labour strikes, embargoes • In October 1973, the Organization of
by governments, over-consumption, aging Petroleum Exporting Countries (OPEC)
infrastructure, and bottlenecks at raised the prices of oil from $ 1.5 per barrel
production centers and port facilities. to $ 7 per barrel. The reasons given were
Pipeline failures and other accidents may that oil prices were not in tune with the
cause minor interruptions to energy increase in prices of other commodities and
supplies. A crisis could possibly emerge that the countries wanted to make
after infrastructure damage from severe maximum profits while the limited reserves
weather. lasted. In 1979, the Iranian revolution
Attacks by terrorists on important caused a disruption in oil supplies.
infrastructure are a possible problem for • The price in dollars per barrel shot up to 24
energy consumers: a successful strike on a in 1979, 34 in 1981 before stabilizing at
West Asian facility could potentially cause around 20. Because of the hike, economies
global shortages. Political events—change were hit worldwide. The worst sufferers
of governments due to regime change, were the developing countries which did
monarchy collapse, military occupation or a not have enough foreign exchange reserves
coup—may disrupt oil and gas production to pay for oil imports. In the ensuing
and create shortages. economic crisis, there were demands for
The world over, the economy has come to higher wages, and cost of living went up.
be heavily dependent on oil consumption. • Once again in 1990, there was a price hike
Even a slight change in prices, or temporary oil as well as difficulty in meeting demand

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because of the Gulf War. At present a small part of the world’s

The 1973 and 1979 crises forced the world population consumes a large part of its
community to improve oil-using resources, with the United States and its
technology, develop alternative sources population of 300 million people consuming
and develop indigenous potential (as in far more oil than China with its population
India). V igorous efforts were made of 1.3 billion people. Ultimately, demands
worldwide to improve the internal over stripping supply and environmental
combustion engine for better efficiency and impact are likely to be the major factors in
mileage. an energy crisis.
Since 2003, price of oil has gone up because The reserves of coal, oil, gas is limited,
of the continued global increase in demand besides these being agents of global
coupled with stagnation in production. warming. Hydro-electricity is capital-
intensive and environmentally sensitive.
• In 2008, the Central Asia energy crisis was
Nuclear energy is expensive and potentially
caused by abnormally cold temperatures
hazardous, while over- exploitation of
and low water levels in an area dependent
wood and animal wastes leads to
on hydroelectric power. Despite having
environmental degradation and ecological
significant hydrocarbon reserves, in
imbalance. Steps need to be taken so that
February 2008, the President of Pakistan
the world may avert an energy crisis of
announced plans to tackle energy shortages
disastrous dimensions.
that were reaching crisis stage. At the same
time the South African president was Energy policies need to be formulated or
appeasing fears of a prolonged electricity reformed to meet the needs of energy
crisis in South Africa. The South African security.
crisis, which may last to 2012, led to large
price rise for platinum in February 2008 and Causes
reduced gold production.
1. Overconsumption: The energy crisis is a
• China experienced severe energy shortages result of many different strains on our
GUIDANCE
towards the end of 2005 and again in early IAS
natural resources, not just one. There is a
2008. During the latter crisis it suffered
MORE THAN A COACHING.....
strain on fossil fuels such as oil, gas and coal
severe damage- to power networks along due to overconsumption – which then in
with diesel and coal shortages. turn can put a strain on our water and oxygen
• It has been predicted that in the coming resources by causing pollution.
years after 2009 the United Kingdom will 2. Overpopulation: Another cause of the crisis
suffer an energy crisis due to its has been the steady increase in the world’s
commitments to reduce coal fired power population and its demands for fuel and
stations, its politicians’ unwillingness to set products. No matter what type of food or
up new nuclear power stations to replace products you choose to use – from fair trade
those that will be de-commissioned in a few and organic to those made from petroleum
years (even though they will not be running products in a sweatshop – not one of them
in time to stop a full-blown crisis) and is made or transported without a significant
unreliable sources and sources that are drain on our energy resources.
running out of oil and gas.
3. Poor Infrastructure: Aging infrastructure of
The world’s population continues to grow power generating equipment is yet another
at a quarter of a million people per day, reason for energy shortage. Most of the
increasing the consumption of energy. The energy producing firms keep on using
per capita energy consumption of China, outdated equipment that restricts the
India and other developing nations production of energy. It is the responsibility
continues to increase as the people living of utilities to keep on upgrading the
in these countries adopt more energy infrastructure and set a high standard of
intensive lifestyles. performance.

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4. Unexplored Renewable Energy global shortages and created major problem

Options: Renewable energy still remains for energy consumers.
unused is most of the countries. Most of the 10. Miscellaneous Factors: Tax hikes, strikes,
energy comes from non-renewable sources military coup, political events, severe hot
like coal. It still remains the top choice to summers or cold winters can cause sudden
produce energy. Unless we give renewable increase in demand of energy and can choke
energy a serious thought, the problem of supply. A strike by unions in an oil
energy crisis cannot be solved. Renewable producing firm can definitely cause an
energy sources can reduce our dependance energy crisis.
on fossil fuels and also helps to reduce
Energy security refers to continuous energy
greenhouse gas emissions.
availability for the economy always at prices
5. Delay in Commissioning of Power Plants: In that can be compared to what the countries
few countries, there is a significant delay in of the world pay for energy.
commissioning of new power plants that
There are multiple means to ensure energy
can fill the gap between demand and supply
security.
of energy. The result is that old plants come
under huge stress to meet the daily demand 1. Move Towards Renewable Resources: The
for power. When supply doesn’t matches best possible solution is to reduce the
demand, it results in load shedding and world’s dependence on non-renewable
breakdown. resources and to improve overall
conservation efforts. Much of the industrial
6. Wastage of Energy: In most parts of the
age was created using fossil fuels, but there
world, people do not realize the importance
is also known technology that uses other
of conserving energy. It is only limited to
types of renewable energies – such as
books, internet, newspaper ads, lip service
steam, solar and wind. The major concern
and seminars. Unless we give it a serious
isn’t so much that we will run out of gas or
thought, things are not going to change
oil, but that the use of coal is going to
anytime sooner. Simple things like
continue to pollute the atmosphere and
switching off fans and lights when not in
use, using maximum daylight, GUIDANCE
walking IASother natural resources in the
destroy
process
MORE THAN A CO of mining the coal that it has to be
ACHING.....
instead of driving for short distances, using
replaced as an energy source. This isn’t easy
CFL instead of traditional bulbs, proper
as many of the leading industries use coal,
insulation for leakage of energy can go a
not gas or oil, as their primary source of
long way in saving energy. Read here
power for manufacturing.
about 151 ways of saving energy.
2. Buy Energy Efficient products: Replace
7. Poor Distribution System: Frequent tripping
traditional bulbs with CFL’s and LED’s. They
and breakdown are result of a poor
use less watts of electricity and last longer.
distribution system.
If millions of people across the globe use
8. Major Accidents and Natural LED’s and CFL’s for residential and
Calamities: Major accidents like pipeline commercial purposes, the demand for
burst and natural calamities like eruption energy can go down and an energy crisis can
of volcanoes, floods, earthquakes can also be averted.
cause interruptions to energy supplies. The
3. Lighting Controls: There are a number of
huge gap between supply and demand of
new technologies out there that make
energy can raise the price of essential items
lighting controls that much more interesting
which can give rise to inflation.
and they help to save a lot of energy and
9. Wars and Attacks: Wars between countries cash in the long run. Preset lighting controls,
can also hamper supply of energy specially slide lighting, touch dimmers, integrated
if it happens in Middle East countries like lighting controls are few of the lighting
Saudi Arabia, Iraq, Iran, Kuwait, UAE or Qatar. controls that can help to conserve energy
That’s what happened during 1990 Gulf war and reduce overall lighting costs.
when price of oil reached its peak causing

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4. Easier Grid Access: People who use 7. Population Contol- Energy demands are and
different options to generate power must will be amplified by the demographic - the
be given permission to plug into the grid world’s population should reach nearly 10
and getting credit for power you feed into billion people in 2050 - and economic boom
it. The hassles of getting credit of supplying of growing areas. According to the
surplus power back into the grid should be International Energy Agency (IEA), global
removed. Apart from that, subsidy on solar energy demand could increase by more
panels should be given to encourage more than 50% by 2030 in the absence of public
people to explore renewable options. policies in this area. So, to avoid the
5. Energy Simulation: Energy simulation catastrophe of energy shortage(neo-
software can be used by big corporates and malthusian view) the is an urgent need to
corporations to redesign building unit check the rapid growling population.
and reduce running business energy cost. 8. Common Stand on Climate Change: Both
Engineers, architects and designers could developed and developing countries should
use this design to come with most energy adopt a common stand on climate change.
efficient building and reduce carbon They should focus on reducing greenhouse
footprint. gas emissions through an effective cross
6. Perform Energy Audit: Energy audit is a border mechanism. With current population
process that helps you to identify the areas growth and over consumption of resources,
where your home or office is losing energy the consequences of global warming and
and what steps you can take to improve climate change cannot be ruled out. Both
energy efficiency. Energy audit when done developed and developing countries must
by a professional can help you to reduce your focus on emissions cuts to cut their emission
carbon footprint, save energy and money levels to half from current levels by 2050.
and avoid energy crisis.

GUIDANCE IAS
MORE THAN A COACHING.....

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4. The Limits to Growth • The model is based on the thesis that “the
continued growth leads to infinite
quantities that just do not fit into a finite
Introduction: world.” This basic idea has been elaborated
• The earth’s interlocking resources – the in a highly complicated model which cannot
global system of nature in which we all live be easily described in equation form. This
– probably cannot support present rates of is because the many relations between the
economic and population growth much five variables are not rectilinear.
beyond the year 2100, if that long, even with • The multipliers in question depend on the
advanced technology level of the variables. Among the various
• In 1968, a group of about seventy five relationships, there are “feedback loops”
persons belonging to different strata of that register the effects of changes in one
society from around the world founded the variable such as food production on another
Club of Rome. They examined the five basic variable like population growth. For
factors that determine and, in their example, population growth is positively
interactions, ultimately limit growth on this related to food production. But food
planet-population increase, agricultural production is negatively related to
production, non -renewable resource pollution, and pollution, in turn, is positively
depletion, industrial output, and pollution related to industrial output. The model also
generation. uses past data on such factors as growth rates
• It believed that the possibilities of of population, industrial output and
continuous growth have been exhausted agricultural production, and the estimates
and timely action is essential in order to of rates of technological progress. These
avert a planetary collapse. factors would lead to the use of new
resources, raise agricultural productivity
• It chose its initial theme “The Predicament and control pollution.
of Mankind” in June 1970. It commissioned
the research by four MIT scientists led by
Donald Meadows which was GUIDANCE
published by AssumptionsIAS of the Model:
the Club of Rome as The Limits to Growth
MOREin
THAN A CO
The ACHING.....
assumptions of the model are based on
1972. The second report entitled Beyond highly non-linear relations:
Limits was published in 1992 which gave 1. Population increase (the difference
fresh evidences as to how mankind has between the birth rate and the death rate)
crossed beyond the limits. is influenced by crowding, food intake,
The Model: pollution, and the material standard of
• It was Jay Forester of MIT who in his book living. A rise in any of these four factors
World Dynamics published in 1971 devised tends to drive the birth rate downwards. The
a model that investigates the interplay of death rate decreases with increasing food
such highly aggregated variables as world intake and the material standard of living,
population, industrial world production, and increases with increasing pollution and
food supply, pollution and natural resources crowding.
still remaining in the world. 2. The material standard of living depends on
• Using the “system dynamics” methodology the level of capital, relative to the size of
of Forester, the authors of the Limits to the population and the productivity of
Growth constructed an elaborate computer capital.
model of the world. They presented a large 3. Non-renewable resources are continually
and new type of model designed to predict used up by the production process. The
the future development of five global inter- lower the level of non-renewable
related variables: population, food resources, the more capital must be
production, industrial production, non- allocated to obtaining resources, and thus
renewable resources and pollution. the productivity of capital for producing
finished goods is less.

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4. Agricultural production depends on land • The second possibility is that it can

and on capital investment in agriculture. overshoot the limit and then lie back either
Land can be developed or eroded, smooth or in an oscillatory way, as shown in
depending on investment decisions. Yield Figures 20.1 (B) and (C) respectively.
per unit of land can be increased by capital,
but with diminishing returns.
5. Pollution is generated by the production
process and gradually absorbed into a
harmless form by the environment. High
accumulations of pollution, lower the
absorbing capacity of the environment.
Operation of the Model:
• A major purpose in constructing the world
model has been to determine which, if any,
of these behaviour modes will be most
characteristic of the world system as it
reaches the limits to growth. The model
shows four possible modes that a growing
population can exhibit over time.
• The mode actually observed in any specific
case will depend on the characteristics of
the carrying capacity. They are the level of
population that could be sustained
indefinitely by the prevailing physical and
biological systems and on the nature of the
growth process itself.
• The last possibility is that it can overshoot
•
GUIDANCE
For example, a population growing in a
limited environment can approachMOthe
the IAS
limit and in the process decrease the
ultimate
RE THAN A COACHING.....carrying capacity by consuming
ultimate carrying capacity of that some necessary non-renewable resources.
environment in several possible ways. It can This is shown in Figure 20.1(D).
adjust smoothly to an equilibrium below
the environmental limit by means of a
gradual decrease in growth rate, as shown
in Fig. 20.1 (A) where LC represents the
carrying capacity of the world, while the OP
curve represents the population growth
curve.

• The most characteristic of the globe’s

population and material outputs under
different conditions have been shown in
these figures. The purpose of the model is
to identify the future policies that may lead
to a stable rather than an unstable
behaviour mode.

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Limits to Exponential Growth: Pollution:

• Food, resources and a healthy environment • D. Meadows is of the view that some
are necessary but not sufficient conditions pollutants are obviously directly related to
for growth. Even when resources are population growth as in the case of
abundant, growth may be stopped by social agricultural land which is a non-renewable
factors. Of course, the society will not be resource and its capacity to absorb
suddenly surprised by the crisis point at excessive pollution is limited. While other
which the area of land needed becomes poullants are more closely related to the
greater than that available. growth of industry and advances in
• Symptoms of the crisis will begin to appear technology.
long before the crisis point is reached. Food • Further, it is not known how much CO2 or
prices will rise so high that some people will thermal pollution can be released without
starve. Others will be forced to decrease the causing irreversible changes in the earth’s
effective area of land they use and shift to climate. How much radioactivity, lead,
lower quantity diets and thus caught in the mercury or pesticides can be absorbed by
death trap due to malnutrition. plants, fish or human beings before the vital
• There is a direct trade-off between processes are severely interrupted.
producing more food and other goods
needed by mankind. The demand for these Predictions of the Model:
goods is also increasing as population grows
• The predictions of the Limits to Growth
and therefore, the trade-off becomes
(LTG) Model are based on its basic thesis that
continuously more apparent and more
“the continued growth leads to infinite
difficult to resolve.
quantities that just do not fit into a finite
• If the first priority is to produce food world.”
continued population growth and the law
This basic thesis can be analysed as under:
of increasing costs could rapidly drive the
system to the point where all available (i) The future world population level, food
GUIDANCE
resources were devoted to produce food, IAS and industrial production will
production
leaving no further possibility of expansion. first grow exponentially, become
MORE THAN A COACHING.....
The exponential growth of demand for food increasingly unmanageable and then
supply results directly from the positive collapse during the 21th century.
feedback loop that is now determining the (ii) The collapse follows because the world
growth of human population. economy will reach its physical limits in
Non-renewable Resources: terms of non-renewable resources,
agricultural land and the earth’s capacity to
• The resources that permit growth of capital
absorb excessive pollution which are finite.
stock tend not to be renewable resources
but non-renewable resources. Are there (iii) Eleven vital minerals such as copper, gold,
limits to the earth’s supply of these non- lead, mercury, natural gas, oil, silver, tin and
renewable resources? Even taking into zinc are being exhausted. If, in addition,
account such economic factors as increased industrial production continues to increase,
prices with decreasing availability, it would that too will give rise to catastrophic results.
appear at present that the quantities of (iv) If the present growth trends in world
platinum, gold, zinc and lead are not population, industrialisation, pollution
sufficient to meet the demands. levels, food problem and resource
• Meadows concludes, “At the present rate depletion continue unchanged, the limits
of expansion….silver, tin and uranium may to growth on this planet will be reached
be in short supply even at higher prices by within the next one hundred years. The
the turn of the century. By the year 2050, most probable results will be rather sudden
several more minerals may be exhausted if and uncontrollable decline in both
the current rate of consumption continues.” population and industrial capacity
sometime before the year 2010.

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(v) Since technological progress cannot expand to catastrophic results.

physical resources infinitely, it would be • Since the resources are finite and are likely
wise to put limits on our future growth to be depleted within 50 or 100 years,
rather than await the doomsday within the people should change their attitude
coming 50 or 100 years. towards the use of resources, their
(vi) This catastrophe can be averted by reproduction and pollution levels so as to
controlling the growth rate of output and save the world from collapse.
population, reducing the pollution levels, Graphic Explanation of the Model:
and thus achieving a global equilibrium with
• The Limits to Growth Model is explained in
zero growth.
Figure 20.2 (A), (B) and (C). Time in years is
• Thus the Limits to Growth report developed taken on the horizontal axis beginning from
an interactive simulation model that the year 1900 to 2100. In Panel (A),
produced a variety of scenarios which were resources are measured along the vertical
especially useful for defining what was to axis and are represented by the downward
be prevented. It stressed that pollution, sloping R curve. Since such resources as oil,
high population growth rate, and shortages natural gas, copper, lead, etc. are fixed, they
of food and resources make the future are being continuously depleted over time
prospects of the world bleak which will lead from the year 1900 and beyond 2100.

GUIDANCE IAS
MORE THAN A COACHING.....

• In Panel (B), the growth of population and pollution level which continues to rise
food supply are measured on the vertical beyond the year 2010 and if not checked in
axis and are represented by the P and F time, will lead to catastrophic results in the
curves respectively. They are shown to world.
increase up to point E at the same rate from
1900 to 2000 year. But beyond the year 2000,
the population curve P continues to rise, It’s Criticisms:
while the food production curve F rises at a • The Limits to Growth was an alarming report
diminishing rate and then starts declining predicting the collapse of the world
by 2100. In Panel (C), the curve PL shows the economy in the 21st century. It sold ten

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million copies in over thirty languages and (c) Food Production:

had considerable impact on economic and • The model assumes the availability of
political thinking and provided an impetus limited land and consequent decline in food
to anti-growth sentiment. In fact, the world production. According to H. Kahn,
community was divided into two groups: “Whenever certain limits are reached, new
the resource pessimists and the resource technologies are introduced with the
optimists. passage of time. These technologies
The former accepted the predictions of the effectively either remove the limit or as
report and the latter criticised them on the time passes a subsequent technology can
following grounds: remove the limit.”
(a) Static Reserve Index: • Kahn sees production rising with the
• The model has been criticised for assuming invention of new technologies as in the
that the non-renewable resources are case of the Green Revolution in developing
scarce and are likely to be exhausted by the countries which has increased food
year 2100. This perspective is based on the production and solved their food problem.
use of the static reserve index which is the (d) Population Growth:
ratio of current reserves to current use or • The model predicted that the world
consumption. The current reserves population growing at an exponential rate
represent known resources that are would be 7 billion in 2000. If the mortality
economically extractable. rate continues to decline without lowering
• The index expresses the number of years the fertility rate, it will be 14.4 billion in
until the resources are depleted, given that 2030. But the world population has not
there will be no additions to the known grown exponentially.
resources and also the future annual use of • It was 6 billion in 2000, as against 7 billion
the reserves remains at the current level. predicted in the model. Highly populated
But the static reserve index is flawed countries like China and India have slowed
because it neglects technological down their population growth rate by
development in recycling and GUIDANCE
reuse of IASbirth control measures. Moreover,
adopting
resources and the possibility of substituting
MORE THAN A COACH ING..... studies have shown that
empirical
scarce materials for abundant resources. economic growth accompanied by rising
Further, with the discoveries of new incomes lowers the fertility rate.
deposits of oil, gas, etc., the size of reserves
(e) Pollution:
may increase overtime despite their
continuing extraction. • The model assumes that the level of
pollution is increasing exponentially in the
(b) Technological Development:
world due to growth in agricultural and
• This model neglects technological industrial activities. Consequently, the
developments in resource extraction, use degradation of environment will adversely
and substitution. In fact, the size of reserves affect the quality and existence of human
of non-renewable resources has been life, and flora and fauna.
increasing due to rapid technological
• No doubt, pollution of the environment is a
development which makes the extraction
serious problem, yet both developed and
of sub-economic stocks of resources less
developing countries are trying to bring
expensive.
down pollution levels by using cleaner
• Moreover, the scarcity of resources has led technologies. So there is no need for
to technological developments in new pessimism that pollution will bring the
resources such as atomic energy, bio-gas, doomsday nearer.
etc. for industrial and human use. According
• However, pollution can be reduced by a
to Giddens, “It is the world of endless charge
judicious choice of economic and
and endless expansion which the LTG report
environmental policies and environmental
overlooks.”
investments. This is only possible through

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economic growth rather than by zero is fanciful.

economic growth, as the model Its implications:
emphasises.
• The Limits to Growth report highlights the
(f) Price System: dangers posed by the relentless pursuit of
• The LTG model neglects the price system material wealth by the developed
and the dynamics of the market system. The countries. It warns readers about the
model predicts that unlimited economic consequences of unconstrained growth by
growth will lead to the depletion of non- the industrialised countries.
renewable resources. But resource optimist • Depletion of non-renewable resources,
economists do not agree with this view. deterioration of environment and the
population explosion. The report calls forth
According to them, as the scarcity of resources policy makers, NGOs and the people in
increases, their prices will rise which will, in turn, general to protect environment, save non-
affect non-renewable resources in four different renewal resources and control population.
ways : • Another important policy prescription of the
(i) With the rise in their prices, their direct LTG model is that the governments should
consumption may be reduced; voluntarily adopt a zero growth policy. Such
a policy would require world redistribution
(ii) The use of high-priced resources in
of income and wealth. For zero economic
production will fall by substituting
growth, the redistribution of income and
techniques that are less intensive in their
wealth both within and between countries
use;
would be on a very large scale. It can only
(iii) High prices of non-renewable resources will be possible by force which would lead to
encourage the search for new sources such upheavals between the rich and the poor.
as atomic energy for power generation; and Moreover, the model fails to explain how
(iv) Their high prices will provide incentives for redistribution of income and wealth can be
the development of substitutes for these affected with zero growth rate.
GUIDANCE
resources through new technologies such IAS
as bio-gas for power. Thus the efficiencyMORE ofTHAN A COACHING.....
A Synopsis: Limits to Growth: The 30-Year Update
the market mechanism seems to be one
reason why the most gloomy predictions for The signs are everywhere around us:
the depletion of non-renewable resources • Sea level has risen 10–20 cm since 1900.
have failed. Most non-polar glaciers are retreating, and
(g) Zero Economic Growth: the extent and thickness of Arctic sea ice is
decreasing in summer.
• The LTG report suggests a zero rate of
economic growth in order to stop the rise in • In 1998 more than 45 percent of the globe’s
the pollution level. Critics point out that if a people had to live on incomes averaging $2
positive rate of growth will lead to doom, a a day or less. Meanwhile, the richest one-
zero growth rate will do the same but on a fifth of the world’s population has 85
smaller time table. Instead, they argue that percent of the global GNP. And the gap
economic growth, especially in developing between rich and poor is widening.
countries, will provide more resources that • In 2002, the Food and Agriculture
can be used to reduce pollution by Organization of the UN estimated that 75
supplying potable water, sanitation percent of the world’s oceanic fisheries
facilities, providing better housing facilities were fished at or beyond capacity. The North
and reducing congestion in urban areas. Atlantic cod fishery, fished sustainably for
• Moreover, economic growth is the only hundreds of years, has collapsed, and the
hope for developing countries to bring species may have been pushed to biological
people out of the vicious circle of poverty extinction.
and raise their standard of living. Thus the • The first global assessment of soil loss,
very idea of a zero rate of economic growth based on studies of hundreds of experts,

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found that 38 percent, or nearly 1.4 billion • Fifty-four nations experienced declines in
acres, of currently used agricultural land has per capita GDP for more than a decade
been degraded. during the period 1990–2001.

GUIDANCE IAS
MORE THAN A COACHING.....

These are symptoms of a world in them or render them harmless. They are
overshoot, where we are drawing on the leading us toward global environ- mental
world’s resources faster than they can be and economic collapse—but there may still
restored, and we are releasing wastes and be time to address these problems and
pollutants faster than the Earth can absorb soften their impact.

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5. World Agriculture: Typology of (a) Collective state farming

Agricultural Regions (b) Cooperative farming
(c) Individual farming

A. Types of Agriculture 8. On the basis of regional characteristics

• The classification of the agricultural types (a) Monsoon type of agriculture
of the world is very difficult because of the (b) Mediterranean agriculture
complexity of farming activities due to (c) Mixed farming of North-West Europe
varied geographical and economic
(d) Tropical and sub-tropical plantation
conditions. Economic geographers have
agriculture
classified the types of agriculture
depending on their expansion, availability • In above mentioned agricultural types, a
of water, cropping pattern, volume of great deal of overlapping is there.
production, season variations, regional Therefore, it creates complexities in
concentrations, social system, ownership of classification. To avoid all such
land, etc. On the basis of these factors complications, it is better to group the
following types of world agriculture have world’s agricultural types according to the
been mentioned: characteristic features both of organisation
and crops, which give each type a
1. On the basis of the expansion of land
uniqueness.
(a) Intensive agriculture
(b) Extensive agriculture
(1) Subsistence Farming
2. On the basis of availability of water
There are two types of subsistence farming:
(a) Humid farming
(a) primitive or simple subsistence farming,
(b) Irrigated farming and
(c) Dry farming (b) intensive subsistence farming.
3. On the basis of cropping pattern
GUIDANCE IAS
(a) Monoculture: single crop agriculture
MORE THAN A COACHIN
Primitive orG.....
Simple Subsistence Farming
(b) Duoculture: double crop agriculture • Primitive farming is the oldest form of
(c) Oligoculture: multiple crop agriculture agriculture and still prevalent in some areas
4. On the basis of seasonal variations of the world. From primitive gathering,
some people have taken a step ‘upward’ on
(a) Winter crop agriculture the economic ladder by learning the art of
(b) Summer crop agriculture domesticating plants and their economy has
(c) Autumn crop agriculture moved into primitive cultivation. This type
or as in India - (a) kharif crops, (b) rabi crops of farming is done on self-sufficient basis
and farmers grow food only for themselves
5. On the basis of volume of production and and their families. Some small surpluses
their nature may be either exchanged by barter or sold
(a) Simple subsistance agriculture for cash. The resultant economy is thus
(b) Intensive subsistance agriculture static with little chance for improvement,
but there is a high degree of rural
(c) Commercial grain farming
independence because farmers are not tied
(d) Plantation agriculture to landlords or to trading centres.
6. On the basis of social system Location
(a) Capitalistic • This form of agriculture is widely practised
(b) Socialistic by many tribes of the tropics, especially in
(c) Feudalistic Africa, in tropical South and Central America,
and in South-East Asia. It is better known as
7. On the basis of ownership of land shifting cultivation). Shifting cultivation is

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practised in the tropics by many different Crops are sown at calculated intervals, often
peoples and thus has many different between the other plants, so that the
names, e.g., milpa in Central America and harvest can be staggered to provide food
parts of Africa, conuco in Venezuela, roca in all the year round. Much the same types of
Brazil, masole in Zaiire, ladang in Malaysia, crops are grown in all the farms.
humah in Indonesia, caingin in the (vi) Short periods of crop occupance alternate
Phillippines, taungya in Burma, tamrai in with long periods of fallowing. When the
Thailand, bewar or poda in India and chena yields can no longer support the community
in Sri Lanka. because of soil exhaustion or the invasion
Characteristics of weeds and shrubs, the fields are
The primitive subsistence agriculture or abandoned and fresh areas cleared. ‘Field
shifting cultivation is characterised by the rotation’ rather than ‘crop rotation’ is
following features: practised.
(i) Sites for the ladang are usually selected in (vii) This form of ‘migratory agriculture’ still
the virgin forest by the experienced elders. supports many of the aboriginal tribes of
Hill slopes are preferred because of better the tropical rain forest, despite the efforts
drainage. Many ladangs are located in the made by the local govern-ments to resettle
remote interiors, far from the main them. The exhaustion of soil nutrients,
population centres. This is partly for deterioration of the lightly constructed
historical reasons as most shifting bamboo houses, attack by insect-pests,
cultivators have been forced into less diseases or wild animals are some of the
favourable areas by the expansion of more major reasons that make migration a
advanced farmers into the lower and better necessity.
lands. Their isolation hinders their progress • A more advanced form of subsistence
and makes the spread of new ideas more farming is ‘sedentary subsistence
difficult. agriculture’ in tropical lowlands, where the
(ii) The forests are usually cleared by fire and fallowed fields are frequently reused and
the ashes add to the fertilityGUIDANCE
of the soil. the IAS
community stays permanently in one
Trees that are not burnt are hacked out MOREbyTHAN A COspot.
ACHINCrop
G..... rotation is also practised in some
the men or left to decay naturally. Shifting places and greater attention is given to the
cultivation is thus also called ‘slash-and- land and the crops sown. Methods of tillage
burn agriculture’. are more intensive, though crude hand
implements are often still used and there
(iii) The cultivated patches are usually very
is a greater employment of manpower in
small, about 0.5-1 hectare (1-3 acres)
the fields. This type of economy is capable
scattered in their distribution and separated
of sustaining a relatively larger population
from one another by dense forests or bush.
on a permanent basis. Many more animals
(iv) Cultivation is done with very primitive tools are kept, including buffaloes, swine and
such as sticks and hoes, without the aid of horses, and animals are used for drought
machines or even drought animals. Much purposes on the farm as well as to supply
manual labour is needed in land clearance milk or meat. Crops are sown in the cool
to produce food for a few people. Thus, season and grown throughout the rainy
despite the fact that little attention is given period to be harvested in the dry season.
to the crops when they are once planted, Many sedentary farmers in Central America
no other form of farming is so wasteful of and South-East Asia also find jobs on
human energy and so unrewarding as plantations and return to their homes
shifting cultivation. periodi-cally with their earnings. In South-
(v) Few crops are raised in the ladangs. The East Asia and West Africa subsistence
main crops are starchy foods, e.g., tapioca, farming may be combined with the
cassava or manioc, yams, maize or corn, cultivation of cash crops or with the
millet, upland rice, beans and bananas. collection and sale of forest products.

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Intensive Subsistence Farming own families, though there is some surplus

• The term, ‘ intensive subsistence for sale in some areas. In China, however,
agriculture’ is used to describe a type of rapid agricultural changes took place after
agriculture characterised by high output per the agrarian revolution of 1949 when the
unit of land and relatively low output per tiny farms were consolidated, under
worker. Although the nature of this communist rule, into large collectives.
agriculture has changed and in many areas (ii) Farming is very intensive: In Monsoon Asia,
now it is no more subsistence. But despite the peasants are so ‘land hungry’ that every
changes the term ‘intensive subsistence’ is bit of tillable land is utilised for agriculture.
still used today to describe those The fields are separated only by narrow,
agricultural systems which are clearly more handmade ridges and footpaths by which
sophisticated than the primitive agriculture. the farmers move around their farms.
Sometimes it is also known as ‘monsoon These are kept very narrow to save space.
type of agriculture’. Additional land is made available for
Location cultivation by draining swampy areas,
irrigating drier areas and terracing hill
• This form of agriculture is best developed
slopes to produce flat areas that are suitable
in and practically confined to the monsoon
for padi cultivation. Only the steepest hills
lands of Asia. It is found in China, Japan,
and the most infertile areas, irrigating drier
Korea, India, Pakistan, Sri Lanka, the greater
areas and terracing hill slopes to produce
part of continental South-East Asia and parts
flat areas that are suitable for paddy
of insular South-East Asia (Java, Luzon,
cultivation. Only the steepest hills and the
V isayan Inlands, coastal Sumatra and
most infertile areas are left uncultivated.
Malaysia) (Figure 4.3). Farming in both the
Farming is so intensive that double- or
wet lowlands and the terraced uplands has
treble- cropping is practised, that is, several
to be very intensive to support a dense
crops are grown on the same land during
population. Population densities in some
the course of a year. Where only one crop of
agricultural areas in Asia are higher than
padi can be raised, the fields are normally
those of industrial areas in theGUIDANCE
usedIAS
West. Many
in the dry season to raise other food
of the regions of intensive subsistence MORE THAN A CO
orACHING.....
cash crops such as sugar, tobacco or oil-
farming have a highly developed form of
seeds.
society and government and some such as
China and India have a continuous history (iii) Much hand labour is entailed: Traditionally,
of civilisation going back more than 4,000 much hand labour is required in wet padi
years. The fast-growing population, almost cultivation. Ploughing is done with the aid
unchecked for centuries, necessitates an of buffaloes, the fields are raked by hand,
ever greater intensity in the tillage of the the padi is planted painstakingly in precise
lands. A small plot of land has to support 5 rows by the women, harvesting is done with
or 10 times the number of people that a sickles and threshing is done by hand. Farm
similar plot on an extensive corn farm in the implements are often still very simple. The
USA could feed. basic tools are simple ploughs, the cangkul,
a kind of spade, and hoes. Nowadays
Characteristics
machinery has been developed which is
• The main characteristics of the intensive capable of working in the flooded fields and
subsistence agriculture are as follows: separate machines can plough, plant and
(i) Very small holdings: Farms have been harvest the padi. Such machines are not yet
subdivided through many generations so widely used because most farmers cannot
they have become extremely small and afford to buy them, but they are extensively
often uneconomic to run. An average farm used in more affluent Japan and are
in Japan is approximately 0.6 hectare (about gradually spreading throughout Monsoon
1.5 acres) but in India and elsewhere in Asia Asia. They may be owned by firms or co-
farms may be even smaller. Individual operatives and hired by individual farmers.
peasants grow crops mainly to support their Machinery has also been widely used in the

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state farms of China. oldest system of commercial agriculture.

(iv) Use of animal and plant manures: To ensure Since 1500 AD, the products from over a
high yields and continued fertility farmers dozen tropical crops have been in constant
make use of every available type of manure demand by people in the temperate
including farm wastes, rotten vegetables, regions. The specialised commercial
clippings, fish wastes, guano, animal dung cultivation of cash crops on estates or
(especially those from the pig sties and plantations is a very distinctive type of
poultry yards) and human excreta. tropical agriculture and is found in many
parts of Asia, Africa and tropical and sub-
• Increasing amounts of artificial fertilisers are
tropical America. Its initiation by the
now being used in Japan, India and China,
Europeans during the colonial period has
usually with government advice or
made possible the manufacture of a wide
assistance. The basic ferti-lisers applied
range of modern materials. Some of the
include phosphates, nitrates and potash,
main plantation crops are rubber, oil palm,
which help to replenish vital plant nutrients
cotton and copra, beverages like coffee, tea
in the soil.
and cocoa, fruits like pineapples and
(v) Dominance of padi and other food crops: bananas, as well as sugarcane, hemp and
Padi is the most dominating crop produced jute.
in intensive subsistence agriculture. But due
• Plantation agriculture is the product of
to differences in relief, climate, soil and
colonialism. Plantations have been
other geographical factors, it is not
developed in response to a demand in
practicable to grow padi in many parts of
Europe for foods, spices, fibers, and
Monsoon Asia. Though methods are equally
beverages, which because of climatic
intensive and farming is done on a
constraints, could be produced only in the
subsistence basis, a very wide range of other
tropics or sub-tropics. Over the centuries
crops are raised. In most parts of North
the demand for most of these items has
China, Manchuria, North Korea, northern
increased with the growth of world
Japan and Punjab, wheat, soya beans,
population and with the insatiable needs
barley or kaoliang (a type of GUIDANCE
millet) are IAS western society. Plantation
of modern
extensively grown as major food crops. MOREIn
THAN A COACHING..... is an export-oriented specialised
agriculture
the India Deccan and parts of the Indus
farming method where emphasis is given
basin sorghum or millet is the dominant
to raise a single crop - specially meant for
crop due to the scarcity of rain and the
export to the overseas countries. It is a large
poorer soils. In many parts of continental
enterprise with sound infrastructure, where
South-East Asia such as the Dry Zone of
profit is the sole objective. It involves not
Myanmar, the Korat Plateau of Thailand and
only culti-vation of crop but also processing,
the interior regions of Indo-China, the
packaging, transporting and exporting of the
annual precipitation is too low for wet padi
product.
cultivation, and the substitute crops are
millet, maize and groundnuts grown Location
together with cotton, sugarcane and oil- • Plantation agriculture is confined within
seeds. During recent decades, this type of tropical areas, i.e., both sides of the equator.
agriculture has registered a significant Plantations exist on every continent
improvement in the form of mechanisation, possessing a tropical climate. The plantation
use of improved seeds and fertilisers and system, however is considerably older in
other modern systems of agro-science. The tropical America than in Asia and Africa. The
countries like China, India, Japan, Malaysia, tropical areas of Latin America, Asia and
Korea, Taiwan, Philippines, etc., have Africa are the areas where plantation
adopted improved system of agriculture. agriculture has been developed. Some of
the important plantation farming are coffee
plantation in Brazil, Paraguay and Bolivia,
(2) Plantation Agriculture
Tanzania, Kenya; sugarcane plantation in
• The tropical plantation is one of the world’s Cuba, Brazil, Peru, Puerto Rico and

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Philippines; tea plantation in India, Sri monopolised the sugarcane plantations in

Lanka, Indonesia; cocoa farming in West Indonesia, especially in Java. Spanish and
Indies, Ecuador, Brazil, Nigeria, Ghana; American capitalists invested heavily in
rubber plantation in Malaysia, Indonesia, coconut, abaca and sugar plantations in the
Thailand, Sri Lanka, Cambodia, Myanmar, Philippines. Some coffee fazendas in Brazil
India; banana plantation in Mexico, Jamaica, are still in the hands of the Portuguese,
Columbia, Brazil, Panama and Costa Rico though most of them belong to wealthy
(Figure 4.4). Brazilians, and there is also some Spanish,
Characteristics American and Canadian interest in
plantation agriculture in tropical America.
Plantation agriculture is different than other
Sugar plantations in Queensland, Australia,
forms of agriculture. The character-istic
are unusual as they employ white labour.
features of plantation agriculture are as
follows: (v) Farming in estates is scientifically managed:
Work in estates is executed with specialised
(i) Plantation agriculture is highly sophisticated
skill, and wherever possible with the
and scientific methods are used for large-
application of machinery and fertilisers. It
scale production.
aims at high yields, high quality production
(ii) There is specialisation of single crop in and a large output, most of which is
plantation agriculture, e.g., coffee in Brazil, exported. The final products, whether
tea in India, rubber in Malaysia, etc. sheet rubber, palm oil or tea, have to be
• Estate farming: Plantation crops are usually carefully processed and standardised to
raised on large estates, of more than 40 meet world demand and specification.
hectares (100 acres) each, though the (vi) Heavy capital outlay: To initiate and to
success of such crops has often encouraged maintain a tropical plantation, large sums
other farmers to grow them so that small of money are required. As many plantations
holdings exist side by side with the large are located in previously undeveloped or
estates. In some parts of West Africa small sparsely populated areas, far from urban
holdings are, however, more important than centres, a minimum network of
GUIDANCE
estates and small holding rubber production IAS
communication by road or rail has to be
MORE THAN A COACHING.....
in Malaysia now exceeds that from estates. developed first, either with or without
Seedlings are firstgrown in nursery seed- government assistance. This is a very
beds and then transplanted in neat rows, expensive undertaking especially under
well-spaced and regularly weeded, on the tropical conditions where maintenance
estates. costs are also high. Plantations are manned
(iv) Foreign ownership and local labour: Most of more and more by local staff, however, less
the largest estates are owned by adminis-trative expenses are incurred, but
Europeans. For example, most Malaysian the overall production cost is still high,
rubber estates were originally in the hands especially where labour is highly unionised
of British companies with their head offices as in Indian and Sri Lankan tea estates.
in London, and were managed and (vii) Plantation agriculture is an export-oriented
supervised by Englishmen. Since agriculture. Nearly the entire product of
independence, however, there has been an plantation agriculture is generally exported
increase in local ownership. The tapping and to the international market. Therefore, it
processing of the rubber is done entirely by requires a better communication network,
local people or by immigrant labourers from packaging and processing facilities.
southern India. The British also established
(viii)Unlike other forms of agriculture,
large tea gardens in India and Sri Lanka and
plantations are well-planned not only in
banana and sugar plantations in the West
terms of field structure but also having
Indies. The French have established cocoa
facilities like residence, transport, hospitals,
and coffee plantations in West Africa, e.g.,
retail markets, etc., for workers and
in Cameroun and Ivory Coast, but Ghana and
associated people and their families.
Nigeria have fewer estates. The Dutch once

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(ix) Plantation agriculture often encourages (iii) Difficulties of clearing and maintenance:
migration from other countries. In colonial The hot, wet, tropical climates
period thousands of people migrated from encourage the growth of a wide variety
one place to another for work. In this way, of vegetation. In rain forests, for
cultural exchange occurs. instance, there is a multiplicity of
(x) Most of the crops grown in plantation species; tall trees, palms, undergrowth
agriculture have a life cycle of more than ferns and various kinds of herbaceous,
two years. Natural rubber, coconuts, oil epiphytic and parasitic plants. A dense
palm, tea, cocoa, and coffee are all tree vegetative cover is difficult to clear to
crops and take years to mature, but make way for plantations and a sound
afterwards they are productive for long communication network. It is even more
periods. expensive to prevent forest shrubs and
trees encroaching on such clearings.
• Although plantation agriculture is
Large sums of money are needed
advantageous and profitable to owners. But
annually for the repair of estate roads
there are several problems of plantation
and railways.
agriculture. The major problems or
difficulties are as follows: (iv)Rapid deterioration of tropical soil: Under
tropical conditions of heavy rainfall,
(i) Climatic hazards: The climatic
mineral nutrients in the soil are carried
requirements of crops like rubber, cocoa
downwards with the rain water as it
and oil palm, which need constantly
sinks into the ground. This leaching
high temperatures, high relative
process proceeds very rapidly and
humidity and very heavy rainfall, are
magnesium, potassium and calcium are
unfortunately, those least suited to
removed. The red lateritic soils that are
human activ-ities. The heat and high
so familiar in tropical lands are thus,
humidity sap human energy and reduce
rather infertile. Overexploitation and
the amount of work people can do. Local
absence of crop rotation depletes soil
winds like the harmattan, hurricanes and
fertility and increases soil erosion.
typhoons can cause greatGUIDANCE
damage to IAS
plantation crops, and in sub-tropicalMareas
ORE THAN A COACHING.....
excessive rainfall or an extended (3) Mediterranean Agriculture
drought can also reduce output or • The term ‘Mediterranean agriculture’
damage trees. In marginal sub-tropical applies to the agriculture done in those
areas frost is a major hazard. Coffee regions which are having Mediterranean
production in Brazil has frequently type of climate. Mediterranean agriculture
suffered from the effects of unexpected is unique because it is a mixture of diverse
frosts. biocultural activities (both animal
(ii) Prevalence of diseases and insect pests: husbandry and crop farming) that has
The tropics with their hot, humid developed in five major world regions. This
conditions, encourage the growth of type of agriculture is determined by climatic
insects and bacteria and also the spread conditions, which exert such an influence
of diseases. Consequently plantations that both traditional and commercial
may suffer from uncontrollable agriculture flourish with a dominance of the
outbreaks of plant diseases, e.g., coffee agriculture of citrus fruits along with
blights, or the depredations by insect horticulture and floriculture.
pests such as the boll-weevil of the Location
cotton plantations. At the same time the
• There are five major regions in the world
labour force is also prone to virus
having Mediterranean type of agriculture.
diseases such as fevers which reduce
The largest of these nearly encircles the
productivity. In some areas malaria has
Mediterranean Sea - and it is from there that
not yet been completely eradicated.
the type derives its name. The regions
having Mediterranean type of agriculture in

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the world are as follows: 635 mm (15—25 inches) and where summer
(i) The Mediterranean Basin: France, Spain, droughts may last for more than six months.
Italy, Algeria, Morocco, Turkey, Tunisia, Fruits are sometimes raised on unirrigated
Israel, Northern Nile valley, i.e., all the ground and draw their moisture supply from
regions around Mediter-ranean Sea deep in the soil. Irrigation is, however,
practised in many areas, especially
(ii) California in USA
California, Israel and parts of France, Spain
(iii) Central Chile and Italy. Olives and figs are indigenous to
(iv) Southern part of South Africa the Mediterranean region and can survive
(v) Lower Murray - Darling basin of South even on thin, calcareous soil with very little
Australia precipitation.
Characteristics (b) Viticulture: Viticulture or grape cultivation
is a speciality of the Mediterranean region.
(i) The natural setting that lends itself to It represents a very intensive form of
Mediterranean agriculture is distin-guished farming requiring not only good conditions
by erratic rainfall, mild temperatures, of moisture, temperature and soil but also
irregular topography, and nearness to large much personal care, if the grapes are to be
water bodies. of high quality. Grapes raised in different
(ii) In this type, farming is intensive, highly parts of the Mediterranean lands have
specialised and varied in the kinds of crops distinctive flavours and wines made in the
raised. Subsistence agriculture occurs side various areas maintain their exclusive
by side with commercial farming. Many names, e.g., sherry from the Andalusia
crops such as wheat, barley and vegetables district of southern Spain, port wine from
are raised for domestic consumption, while the Doura basin of western Portugal,
others like citrus fruits, olives, and grapes marsala from the Isle of Sicily, anti from the
are mainly for export. The Mediterranean Chianti Hills of Tuscany, asti from the
lands are also known as ‘orchard lands of Piedmont district of northern Italy. In
the world’.The land use in these areas is France, where wine-making is a national
dependent on such factors GUIDANCE
as the total IAS
industry though much of the country does
annual amount of rainfall, length MOREofTHAN A CO ACHhave
not ING..... a Mediterranean climate, the
summer drought, availability of melting specialisation is even more distinct. The
snow, local soil conditions, and price great variation in relief, climate, soil and
fluctuations in local and world market. methods of preparation has produced many
(iii) The four main aspects of Mediterranean famous wines. The sparkling Champagne
agriculture are: (a) orchard farming, (b) comes from the Paris basin; Burgundy from
viticulture, (c) cereal and vegetable the limestone scarplands of the Cote d’Or;
cultivation, and (d) limited animal Claret, Brandy (Cognac), Barsac and
husbandry. Bordeaux from different parts of western
France, especially the basin of Aquitaine.
(a) Orchard farming: It represents a highly
Wines are also produced in the
specialised commercial agriculture here.
Mediterranean lands of Australia, South
The world supply of citrus fruits, olives and
Africa and South America, though these are
figs comes almost exclusively from
not as famous.
Mediterranean lands. Fruit culture has long
been a traditional Mediterranean (c) Cereal and vegetable cultivation: In acreage,
occupation because of the very special cereal crops are the most important in
climatic features in Mediterranean areas. Mediterranean agriculture. Wheat,
Citrus fruits (oranges, lemons, grapefruits), especially hard winter wheat, is the
olives and figs, which have long, wide- principal food grain, and barley is grown in
spreading roots, scant foliage and fruits with the poorer areas. In most Mediterranean
thick skins are best adapted to the countries cereals often occupy about half
Mediterranean type of climate where the total cultivated acreage and provide
annual precipi-tation can be as low as 380— enough grain for home consumption. The

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warm and sunny Mediterranean climate they can be fed on skim milk and other
also allows a wide range of other food crops leftovers from the farm.
and green vegetables to be harvested. Location
Beans, lentils, onions, tomatoes, carrots,
• The two most extensive regions of mixed
sugar beet and all the leafy vegetables of
farming are in Eurasia and the United States
the warm temperate latitudes are grown.
(Figure 4.6). This activity takes up more land
The seeds are sown in autumn when the
than any other type of bioculture in Europe
showers come and cultivation continues
and is prevalent eastward in an ever
into the following year, maintaining a
narrowing belt that stretches from the
constant supply to the urban markets.
Atlantic to the Pacific, with only one
(d) Limited animal husbandry: Mediterranean interruption in Eastern Siberia. This belt is
agriculture is also charac-terised by limited the thickest between Ukraine and central
animal husbandry, which survives on Finland.
grasslands available here. In areas like
• In United States mixed farming is the second
Lombardy plain, Ebro basin, San Joaquin
most extensive type of agriculture, and
valley of California, dairy farming is
covers a large part of eastern half of the
important. In mountain areas the practice
country. It extends through Ohio, Indiana,
of ‘transhumance’, moving the cattle up to
Illinois, Iowa and Nebraska on the north, and
mountain pastures in the summer and
Virginia, Tennessee, Georgia, Oklahoma
returning them to the valleys in winter, is
and much of Texas on the south. A small area
very common.
in Pacific North-West also has mixed
farming.
(4) Mixed Farming • Other regions of mixed farming are: Mexico,
• In mixed farming, a farmer combines the South America and Southern Africa.
cultivation of crops and the domesti-cation Characteristics
of animals and gets income from both.
(i) The mixed farming is done for
Mixed farming can, therefore, serve as a
GUIDANCE
transition between the animal-raising (a) IAS
sustenance of animals,
economics and the crop-raising ones. MOThis (b)
RE THAN A COACHfor own consumption, and
ING.....
type of mixed farming provides greater (c) for commercial sale.
security than the growing of a single crop as
in the extensive prairie wheat farms may (ii) In mixed farming about 90 per cent land is
suffer from market fluctuations and crop devoted to agriculture.
failures. Mixed farms are moderate in size (iii) In mixed farming crop rotation is followed
and usually grow arable crops such as in order to maintain soil fertility.
wheat, barley, oats or rye. Many practise (iv) The sequence of cultivation in mixed
crop rotation, growing root crops, like farming is cereal and vegetable production
turnips or potatoes, and legumes, like peas, for own consumption, followed by hay,
beans or clover, as an alter-native to cereals alfalfa, clover, etc., for livestock
in some years. This maintains the fertility consumption, and finally, some amount of
of the soil. Many mixed farms also grow cereal production, wheat, maize, etc., for
some industrial crops such as sugar beet, commercial sale.
hops, tobacco or flax. In addition to the
(v) This farming is more mechanised. The use
arable crops a herd of cattle or sheep is
of heavy machines like tractors, harrowers,
usually kept. These may be fed on the
thrashers, etc., is very common.
stubble of cereal crops, helping, with their
dung, to enrich the soil or may be fed on (vi) There is a large-scale use of both organic
fodder crops such as roots or legumes grown and inorganic fertilisers.
in the crop rotation system. Some part of (vii) The degree of commercialism varies
the farm may be kept for beef or milk and considerably. In west-central Europe, the
sheep for meat. Pigs are also often kept, northern United States, and Argentina,
especially where dairying is practised as mixed farming is highly commer-cialised,

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while in other areas the commercialisation mid-latitudes are very large, ranging from
is limited. 240 to 16,000 hectares. Though average size
of the farm in the USA is about 400 hectares.
In these areas land is cheap that makes it
(5) Commercial Grain Farming
possible for a farmer to own very large
• Commercial grain farming is an extensive holdings.
and mechanised form of agriculture. This is
(iii) Highly mechanised: The commercial grain
a development in the continental lands of
farming is highly mechanised. Cultivation
the mid-latitudes, which were once roamed
from ploughing to harvesting is often
by nomadic herdsmen. The continental
entirely mechanised. The use of tractors,
position, well away from maritime
ploughs, drills and combine harvests which
influence, and the low precipitation
reap, thresh, winnow and sack the grain all
(between 305 and 660 mm/12 and 26 inches)
in one operation is common.
make crop cultivation a calculated risk. It
was the invention of farm machinery which • Low yield per acre but high yield per man: In
enabled farmers to cultivate grain on a large this farming wheat grown gives
scale, and there is a marked specialisation comparatively low yields. The average yield
in wheat monoculture in many areas. is seldom more than 1,700 kg per hectare,
Communication with the outside world is whereas under intensive cultivation the
mainly by railways and the bulk of the grain yield is more in many countries. But
harvest is exported. because of mechanisation, less labour force
is required, therefore, yield per man is
Location
high.Other features of the commercial grain
• The major world regions of commercial farming are:
grain farming are shown in Figure 4.7. The
(a) Lack of irrigation
largest one, in Eurasia, stretches from Kiew
in southern Russia to Onsk in western (b) Farm ownership
Siberia in a width of about 1,000 km from (c) Prone to climatic hazards
Caucasus to Saratov on the Volga river.
•
GUIDANCE
In north America, there are several areas of
IAS
(d) Dependance on market fluctuations, etc.
MORE THAN A COACHING.....
commercial grain farming. The largest area
(6) Irrigation Farming
runs from Alberta, through Saskatchewan
and Manitoba to Dakotas. Another centre is • Irrigation farming is prevalent in areas
in Kansas and spills over into neighbouring where rainfall is seasonal and confined to a
states. Smaller regions appear in eastern particular season. In all parts of the world
Washington and Oregon, eastern Illinois and there is a long dry season, when irrigation
northern Iowa. is practised.
• In south America, Argentina has a large • It is, however, the most important in
region of commercial grain farming. monsoon and the sub-tropical regions. Here
Australia has two areas, one in the south- rainfall is precarious, or is confined to one
west and another in the south-east. In fact, season only, and the tempera-tures are
commercial grain farming is a mid-latitude suitable for crop cultivation throughout the
activity and mostly done in between 30° to year. Also large populations exist here
55° N and S latitudes. whose mainstay is mostly agriculture, which
may produce nothing in drought years.
Characteristics
• One of the main advantages of farming
(i) Specialisation in single crop: Commercial
under irrigation is that the water supply
grain farming is highly specialised and
needed for the growth of crops, which is so
generally one single crop is grown. In most
uncertain in humid farming, is very largely
commercial grain regions that crop is wheat.
under the control of the farmer. Growing a
Both winter wheat and spring wheat is
crop under irrigation requires more labour
grown in these areas.
and cost than under humid farming. The
(ii) Farms are very large: The wheat farms in higher yield of the crops, however, repays

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this extra labour and cost. In the United succeeding rain will soak in. The ploughed
States the value of crops on irrigated land is land also checks the drifting of snow that
25 to 65 per cent greater per acre than in the may fall in winter. The conservation of
country as a whole. moisture is attained by the maintenance of
• The sources of irrigation water are: (i) from a layer of dust or dust-mulch over the
the rivers which may be snow-fed and yield surface of the field. This ‘mulch’ prevents
a continuous supply as in India, (ii) tanks or water from getting evaporated. Leaving the
reservoirs which may be filled during rain, land fallow in occasional years and not
(iii) the underground supply tapped allowing any weeds to grow is also
through the artesian wells in especially sometimes necessary. While the land is
suited regions as in Australia or South Africa, lying fallow, it is carefully and repeatedly
or through the ordinary dug out wells as in tilled to prevent the growth of weeds which
India, and (iv) canal irrigation now has would use up soil moisture. The ratio of
become very popular. This requires fallow years to crop years varies with the
construction of dams on rivers. In many amount and distribution of rainfall.
countries of the world, dams have been Sometimes a crop may be grown only once
constructed to provide irrigation. Large in three years.
dams have been built across the mighty • Wheat is perhaps the widest and most
rivers like Ganga, Indus, Irrawaddy, Menam, generally grown dry farming crop. It is fairly
Mekolong, Nile, San-Joaquin, etc., which drought-resistant and economic in its use
provide ample water in drier parts of the of water; and its early maturity enables it to
year for irrigation. make the best use of water stored in the
• In fact, irrigation farming is not a special soil, before it is seeded. As wheat has both
farming but it is simply a farming through winter and spring varieties, it is well-
irrigation facilities. Although, construction adapted to a wide range of climatic
of dams and canals is a costly affair but the conditions that may occur in the dry farming
same has been compensated by high lands. The wheat grown under dry farming
production of cereals and other cash crops. is of the highest baking quality.
This has been done in IndiaGUIDANCE
and China. • IAS
Oats, barley, rye, sorghum and beans are
MORE THAN A COACHING.....
Irrigation enables cultivation throughout the other important crops grown chiefly as
year and the farming system is practised fodder crops.
intensively. • The most important dry farming area of the
world is in the United States, where the
(7) Dry Farming largest area is located in the Great basin,
Columbia river basin and the Snake river
• The term ‘dry farming’ was first used in
basin. Other regions where dry farming is
America to designate farming without
practised to some extent or the other are in
irrigation in a section where irrigation was
Australia, Canada, Western Asia and South
generally practised. The use of the term has
Africa.
been extended and it has come to mean
specifically the production of crops without • Agriculture is the most fundamental from
irrigation in regions of deficient rainfall. The of human activity. An area or region with
factor that distinguishes dry farming from similar functional attributes is termed as
humid farming is the limited water supply. agricultural system as a widen term which
Water being the vital thing for agriculture, emphasize on the functional attributes. An
its conservation and economic utilisation agricultural system may be single farm or
becomes of primary importance in dry group of interrelated farms having
farming agricultural practice. similarities of agricultural attributes.
• The essential part of dry farming is deep
ploughing (20 to 30 cm), to enable greater
and deeper sinking of water. This is done
immediately after the harvest, so that any

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B. Agricultural Regionalisation (vol.26: 199-240) Whittlesey in his

Definition of Agricultural Region: monumental paper delineated the
agricultural system of the earth on the
“Agricultural Region is an uninterrupted
following five characteristics of
area having some kind of homogeneity
agriculture—
with specifically defined outer limit.”
(1) The crop livestock association
—Whittlesey (1936)
(2) The methods used to grow the crops
produce the stock
Whittlesey World Agricultural Systems/Region:
(3) The intensity of application to the land of
• An area with similar functional attributes labor capital organization the out turn of
is as an agricultural region. The product which results
demarcation of agricultural region is also
(4) The disposal of the products for
seriously constrained by the none
consumption
availability of reliable data on the various
aspects of agricultural patterns. The first (5) The ensemble of structures used to house
scientific attempt for the Whittlesey in his facilitate the faring operations
proper. Major agricultural regions of the On the basis of above indicators Whittlesey
Earth published in 1936 in the annals of has identified the following types of
Association of American geographers agricultural system regions—

GUIDANCE IAS
MORE THAN A COACHING.....

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GUIDANCE IAS
MORE THAN A COACHING.....

A brief account of these agricultural regions It is carried mainly to produce food for the
is given below under separate heads. family to fulfill the needs of clothing shelter
(1) Nomadic Herding: recreation.
This is an extensive farm of animal grazing (b) It is a declining type of agriculture continues
on natural pasturage involving constant on to become less important.
seasonal migration of the nomads their (c) The main characteristics of nomadic herding
flocks nomadic handing is confined to rather is the continued movement
sparsely populated parts of the world where of people with their livestock in search of
the natural. vegetation is mainly grass. forage for the animals.
Location: (d) The Bedouin of Saudi Arabia the taurag of
Nomadic handing at present is mainly the Sahara also practice nomadic herding in
concentrated in Saharan Africa (Mauritania, the desert semi desert areas of North Africa
Mali, Niger, Chad, Sudan, Libya, Algeria ). south west Asia.
The south western central parts of Asia the (e) The chief characteristics of nomadic herding
not pails of Scandinavian countries are described below—
(Norway, Sweden , Finland ) northern
Canada.  Seasonal pattern of movement.
Characteristics:  Many kinds of animals grazed.
(a) Nomadic herding ism ecological or rear  Transhumance.
ecological systems of agriculture

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(2) Livestock Ranching: Characteristics:

• In the extensive temperate grasslands once (a) Shifting cultivation is called by different
named by nomadic herdsmen or by hunters name in different parts of the world. It is
arc found permanent ranoles where large generally known as a slash burn and bush
numbers of cattle sheep goats horses are fallow agriculture. it, is variously termed as
kept. ladang in Indonesia, Milpa in central
Location: America, Mohole in the Congo central
Africa.
• Livestock ranching at present is manly
located in the Americans, Australia, the (b) The farmer grow food only for his family in
Republic of South Africa, Brazil Argentina, this agriculture systems. Some small surplus
Peru, New Zealand the nearest equivalent if any are exchanged on bartered (exchange
to nomadic herding is ranching. of commodity for commodity) or sold for
crash in the neigh boning markets.
Characteristics:
(c) Shifting cultivation has been described as
(a) The livestock ranchers specialize in animal
an economy of which the main chana
husbanding to the exclusion of crop raising
etenistues arc rotation of fields rather than
even through both live in arid on semi-arid
rotation of crops.
region.
(d) In the hill tracts of north-Cast India Thinning
(b) Tim livestock ranchers have fixed place of
is the dominant economic activity. Our 86
residence and operate as individuals rather
percent of the people living on hill arc
than with in a tribal organization.
dependent on shifting cultivation.
(c) Livestock ranching differs farm nomadic
(e) The shifting cultivations grow food grains-
herding in time important aspects.
rice maize-millet- jobs-beans- vegetables-
 The vegetation cover is continuous. soybean.
 There is little or no migration.
 Ranches one scientifically managed. (4) Rudimentary Tillage:
GUIDANCE
 The animal’s arc rose for sale. Location:IAS
 Commercial grazing supportsMOthe RE THAN A COACHING.....
• Mostly confined to the tropical lands of
development of town’s communications. Central & South America, Africa, South-East
Asia.
(3) Shifting Cultivation: Characteristics:
• Shifting cultivation essentially this is a land (a) Crop rotation occurs most rather than field
rotation system. Farmers using machetes or rotation.
other bladed instruments chop away the (b) Potatoes, Sweet potatoes, Maize, Sorghum,
undergrowth from small pat etches of land. Banana etc are grown.
Then they kill the trees by cutting of a strip
of bank completely around the truck. Afton
the dead clean it farm the land. These (5) Intensive Subsistence Tillage (with paddy
cleaning techniques have gluten shifting dominance):
cultivation the name or slash and burn • This from of agriculture is best developed
agriculture. in partially confined to the monsoon lands
Location: of Asia.
• Shifting cultivations the primitive form of Location:
soil utilization usually a tropical rainforests • Intensive subsistence tillage dominated by
also tropical lowlands hills in the center paddy is practiced mostly in the tropical
America, Africa, and Southeast Asia, Asia. It is carried on mainly in China. Japan,
Indonesia. India, Bangladesh, Myanmar, Thailand,
Srilanka, Malaysia, Philippines etc.

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Characteristics: development establishment of plantation

(a) Farming is also intensive that double or stct. Accessibility connectivity availability of
treble cropping is practiced. That labor difficulties of clearing vegetation
prevalence of discover sin sect pest , weeds,
is several crops are grown on the same land
rapid deterioration of the tropical soil , soil
during the course of a year.
erosion are some of the main problem of
(b) Where only one crop of’ paddy can be plantation agriculture.
raised. The fields one normally used in the
(iii) The plantation forms arc generally large and
dry season to raise other food or cash crop
arc found mainly in the thinly populated
such as sugar tobacco on oil seeds on the
areas. The size of farm varies from 40
fiber crop jute.
hectares in Malaya India, too 60000 hectares
(c) Asian farmer one now producing even in Liberia. In these estates on large
greater yields per acre because of the recent disciplined but unskilled labor force is
introduction to improved varieties of hybrid necessary.
rice.
(iv) Some of the main plantation crops are
rubber, oil palm, cotton, copra, beverages
(6) Intensive Subsistence Tillage (without like coffee, tea, coco, fruits like pineapples,
paddy dominance): bananas, as well as sugar-cane jute.
Location: (v) The continent wise analysis reveals that
• It includes interior India and North-East Asia is the leading producer of Jute (96%),
China. rubber (90%) tea (87%) coconut (37%)
tobacco (46%) of the total world production
Characteristics: Asia share in the production of sugarcane is
(a) Land is intensively used & worked primarily 39% that of banana , oil palm is 25% each
by human power. (Hussain 1996).
(b) Farming in these regions suffers from (vi) The characteristics features of commercial
frequent crop failures & famines. plantation may be summarized as follows—
GUIDANCE
(c) Wheat, Soya bean, Barley, Kaoliang crops are IASfarming.
(a) Estate
grown. MORE THAN A COACHING.....
(b) Foreign ownership local labor.
(c) Fanning in estates is scientifically
(7) Commercial Plantation: managed.
• The specialized commercial cultivation of
cosh or estates or plantation is a very (8) Mediterranean Agriculture:
distinctive type of tropical agriculture is
found many parts of world. • Within the Mediterranean climatic region
where there is winter rain summer drought
Location: a distinctive type of agriculture has evolved.
• The term plantation agriculture was Location:
originally applied specifically to the British
settlements in America then to any Inga • Agricultural typology is confined to the
estate in north America , west India, south- coastal areas the Mediterranean sea in
east Asia which was cultivated mainly by Europe, Asia, Minor, North African coastal
Negro or other colored labor. strip. Outside the Mediterranean cost this
system is found in California (USA). Central
Characteristics: Chile the south-cast of cape province (South
(i) A plantation is a land holding devolved to Africa) South-West of Western Australia.
the specialized production of one tropical Characteristics:
or subtropical crop raised for market.
(a) This type of farming is also found in irrigated
(ii) Climatic hazards’ strong winds, topography, semi-descent descent areas in similar
drainage soil vegetation condition often latitudes.
handicap or many even prevent the
(b) The agricultural landscape of

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Mediterranean region has been largely (a) Winter wheat belt.

affected by long day summers occurrence (b) Spring wheat belt.
of rains during the winter season devices
for artificial irrigation during drought
periods of summers. (10) Commercial Livestock & Crop Farming:
(c) Traditional Mediterranean agricultural is Location:
bored on what barely cultivation in the rainy • It is found throughout Europe from h eland
wastes season raising drought resistant vine in the West through central Europe to Russia.
tree crops like the grape olive, fig, small It is also found in north America cast at 98’o
livestock herding particularly of sheep goats meridian in the pampas or Argentina,
pigs. Southeast Australia, Australia, South Africa,
(d) In recent times farmer have begun using New Zealand.
irrigation ill 1 major way which has led to Characteristics:
the expansion of crops such as the citrus (a) The main characterized of the mixed
fruits. farming arc that farms produce both crops
(e) The Mediterranean land in fact the Orchard livestock the tow enterprises interwove a
lands of the world the hart of the worlds integrated.
wine industry. (b) Mixed farms one characterized by high
expenditure on machinery farm building
(9) Commercial Grain Farming: extensive use of machinery arm buildings
fertilizers also by the skill experts of
• Commercial grain farming is another market
farmers who need to know about all aspects
oriented type of agriculture in which
of farming to grow market their range of
farmers specialize in growing wheat on less
product successfully.
frequently rice or corn.
(c) Mixed farming is essentially associated wilt
Location:
the density populated. Urbanized
• Great wheat belts stretch through Australia industrialized societies dependent. A upon
GUIDANCE
the plains of interior North America, the highIAS
incomes for the sale or its products
steppes of Russia, the pampas of Argentina,
MORE THAN A COACHING.....
upon manufacturers industry for the
together the United states, Canada farmer, provision of its inputs.
Soviet union.
(d) In mixed farming a number of crops one
Characteristics: grown. Crenels dominate the cropland use
(i) The commercial vain fanning is basically the leading grain varying with climate soil.
extensive. The main characteristics of these A large portion of cereals is fed to animals
systems are— on the farms on sold to Maim factures of
(a) Big farm size feeding stuff. Livestock feed on crop grown
on the farm graze the post wire.
(b) Comprehensive use of heavy machines
(c) Low use of irrigation fertilizer
(11) Subsistence Crop & Livestock Farming:
(d) Low production rate
Location:
(e) Long distance of farm from market.
• Northern Europe, Middle East, Mountain
(ii) Widespread use of machinery enables
region of Mexico.
commercial grain farmer to operate on this
large scale indeed plan ting harvesting grain Characteristics:
is more completely mechanized than any (a) Produced crops & raised livestock mainly
other form of agriculture. used for own subsistence.
(iii) Wheat is the main crop; Mize, Barleys, oat (b) Traditional way of farming.
ore another important crops. The wheat (c) Seeds are poor quality & animals are poorly
production regions are divided into two husbanded.
belts.
(d) Capital input is normally unknown.

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(e) Wheat, Maize, Rye, Barley etc are the main (i) In horticultural the farms arc small such
crops. farms arc located where communication
(f) Sheep and Goats are the most important links the consumption centers arc
animal. appreciably good. The land fruits’ vegetable
gardening is very intensively cultivated. Soil
(12) Commercial Dairy Farming:
fertilizers Mimi oldie work is done by hand
Location: labor.
• The rearing of the cattle for milk, milk (ii) The market gardens are scientifically
products (butter, cheep, condensed, dried managed to achieve optimum yields hand
milk etc) is known on daily farming. It is some returns.
mainly practiced in Europe, Northern USA,
(iii) The important vegetation region are
Canada, Australia, New Zealand, Denmark,
California Rio Ground boring of Texas Florida
Netherlands, Belgium, Finland, France, and
Netherlands, Rhone valley etc. fruits regions
Switzerland. It contributes 40% of
are west of Paris , Rhine valley lake region
agricultural income.
of Switzerland, Mendoza, Sanjuam of
Characteristics: Argentina etc. (grapes production ) south
(i) Dairying is capital intensive farming. A western Germany (apple).
modern dairy farm needs long here’s from (iv) Besides south Arab, Iraq for date. India,
the farming huge amounts for the South-East Asia for spices, pineapple,
development of infrastructural facilities mango etc.
capital is required for the punch ore of
Merits of Whittlesey’s classification of
mechanical equipments like milking
agricultural regions
machines milk freezers, feeding towers,
born silos for the storage of fodder for 1. It provides a classification and description
winters. of major agricultural regions of the world
used in atlases etc.
(ii) The size of cattle in dairies varies from
country to country from farm to farm 2. The five basic functioning forms are
GUIDANCE
depending on the size of holding. In the IAS
subjected to statistical determination.
United Kingdom for example the ratio MOREofTHAN
3.A COAACH
comparative
ING..... study of the agricultural
cattle pasture is one cow after one acre. The regions is possible by plotting the system
average size of dairy cattle in north-west of the first degree of magnitude on a single
Europe is only five cows per farm. map.
(iii) Nearly 80% of the total milk production of 4. The study focuses on the observable items
the world is produced in Europe, Russia, in the agricultural landscape. .
Anglo America, Australia, New Zealand 5. The classification serves as a framework in
(Hussain 1996). which further refinements can be
(iv) Modern method of daily farming cattle suggested.
breeding herd management allow high Limitations to the classification :
yields of dairy products. A cow in temperate
1. The various bases of classification, viz., the
latitudes under normal healthy conditions
institutional, cultural and political factors
yield or much as 3000kg of milk pen year.
are not static but are continually changing
(13) Specialized Horticulture: because of changes in the local, national and
• Specialized cultivation of vegetables, fruits, global situations. So, Whittlesey’s scheme
flowers is called horticulture. has recently been modified by Thoman
Location: Fryer.
• Horticulture is well developed in the 2. Whittlesey has not taken into consideration
densely populated industrial districts of some relevant indicators like land tenancy,
north-west Europe, Britain, Denmark, land ownership, size of holdings,
Germany, Netherlands, France, Italy. fragmentation of holdings, government
policies, etc.
Characteristics:

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6. Agricultural Inputs and production, viz., land, labour and capital.

Saxon (1965) consider productivity as a
Productivity physical relationship between output and
input, which gives rise to that output.
A. CONCEPT OF AGRICULTURAL PRODUCTIVITY • There are many different concepts of
• Term productivity has been used with productivity, and still diverse ways for
different meanings and has aroused many computing it many different concepts of
conflicting interpretations. Sometimes it is productivity, and still diverse ways for
considered as the overall efficiency with computing it. The chairman of the
which a production system works, while International Commission on Agricultural
others it is defined as a ratio of output to Typology, Prof. Kostrowicki, while
resource expanded separately or evaluating different views pointed out, that
collectively. This term has also incorrectly a special study for testing various methods
and interchangeably been used with and techniques to be used in studies of
production. In reality, production refers to various scales were needed.’ Land, labour
the volume of output, while productivity and capital are the partial measures to
signifies the output in relation to resources examine agricultural productivity.
expanded. The quantum of production can • ‘Land’ is viewed as area with different
be increased by employing more resources natural attributes. It realizes different rents
without increasing productivity and and its cost varies in accordance with the
productivity per unit terms can be increased need and location.
without increasing production by • ‘Labour’ represents all the human rendered
employing less inputs for the same services, other than decision making, and
production level. It is commonly agreed that ‘capital’ the non-labour resources
productivity is the ability of a production employed in cultivation by the farmers.
system to produce more economically and
• Land productivity is obviously of primary
efficiently. Therefore, agricultural
importance in countries where there is a
productivity can be defined as a measure of
efficiency in an agriculturalGUIDANCE
highIAS
density of population. Where land
production
resources
MORE THAN A CO ACHIN G..... are scarce, the principal means
system which employs land, labour, capital
of raising production to keep pace with the
and other related resources.
growth of population is by raising yield per
• In recent years many attempts have been hectare. However, raising the productivity
made to define the connotation of of land does not mean only raising the yield
agricultural productivity. Dewett (1966) of individual crops. It encompasses the
explains it as, “productivity expresses the whole output of a farm or country in relation
varying relationship between agricultural to the total area of farm land, and which
output and one of the major inputs, like, may also be raised by changing the pattern
land or labour or capital, other of crop production and toward more
complementary factors remaining the same intensive system of cultivation or toward
....”. It may be borne in mind, that higher value crops.
productivity is physical rather than a value
• A distinction must be made between the
concept.
measurements of agricultural output in
• Pandit (1965) has expressed the connotation terms of calories (or some other
of productivity in these words, “productivity measurement of food values), and in terms
is defined in economics as the output per of money values. For example, if in
unit of input.... the art of securing an temperate countries the cultivation on land
increase in output from the same input or is shifted from cereals to potatoes, the
of getting the same output from a smaller output per hectare in terms of calories of
inputs”.” He further suggests, that increases human food is likely to be increased, but its
in productivity, whether in industry or productivity in terms of money value may
agriculture, is generally the result of a more be changed upward or downward in
efficient use of some or all the factors of accordance with the relative prices of

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cereals and potatoes. Again, shifting the solves part of the problem but not all of it
land for cultivation of main crop potatoes because of the widespread use of livestock,
to early season potatoes or to luxury particularly in the developing regions, for
vegetables may well increase its draft power. A complete accounting of the
productivity in money terms, but will almost output would, therefore, also require the
certainly reduce its output in terms of inclusion of the draft power produced by
calories. livestock.
• Labour productivity means the income of
the population engaged in agriculture, and THE MEASUREMENT OF AGRICULTURAL
can be measured in terms of output per PRODUCTIVITY
worker. It takes into account all the labour
• The measurement of agricultural
which contributes to agriculture production,
productivity is not a simple task as it deals
the labour that is used directly on the farm
with to establish a relationship between
as well as that used indirectly off the farming
output and input in agricultural production.
producing the materials and services used
Inputs committed to agriculture have a
on agricultural production.”
complex phenomenon which governs
• Labour productivity is in fact the most farming efficiency.
common form of income measurements,
• Stamp (1960), while attempting to measure
and is usually implied in economic
crop productivity per unit area emphasized
discussions. For ascertaining the output per
that the areal differences in crop
man it is one of the major determinants of
productivity are the result partly of the
the general level of economic welfare,
natural advantages of soil and climate and
labour productivity is a significant. yardstick
partly of the farming efficiency.” Farming
of economic progress.
efficiency refers to the properties and
• Capital productivity of agriculture is qualities of various inputs, the manner in
particularly complicated to compute and which they are combined and utilized for
difficult to interpret This is largely because production and effective market demand for
of diversity of capital being GUIDANCE
utilized in cropIAS
output. The assessment of agricultural
agriculture production: for land purchase productivity
MORE THAN A COACHING..... has engaged the attention of
and for improvements, land reclamation, scholars working in different disciplines
drainage, irrigation, farm building, like, geography, economies, agricultural
mechanical power, machinery and economics and agricultural sciences, for a
implements, livestock, feeds, seeds, long time. Many attempts have been made
fertilizers, crop protection chemicals etc. to measure and quantify agricultural
The presence or absence of amount, quality productivity in India as well as other
and price of each factor of production varies countries of the world.
spatially, affecting the relationship between
• Thompson (1926) while measuring the
them and their deployment on individual
relative productivity of Birtish and Danish
farms.
farming emphasized and expressed it in
• The productivity of livestock is again more terms of gross output of crops and livestock.
difficult to measure than the productivity He considered the following seven
of land. The difficulty arises both in the parameters:
measurement of the input and output.
(i) The yield per acre of crops, (ii) the livestock
Much of the livestock production results in
per 100 acres (iii)the gross production or
more than one end product: Cattle may
output per 100 acres, (iv) the proportion of
produce milk, beef and hides, sheep may
arable land, (v) the number of persons
produce wool and meat etc. A comparison
employed, (vi) the cost of production
to say, the milk output of specialized dairy
expressed in terms of wages and labour
cows with that of dual purpose animals kept
costs, rent or interest, and (vii) prices
for both milk and beef may be misleading.
relative profitability and general economic
To aggregate the output of all livestock
conditions.
products, with suitable price weights,

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• Ganguli (1938) presented a theoretical adequate. While determining the money

discussion for computing productivity in value coefficient, another difficulty arises
agriculture. Firstly, he took into account the with regard to the price for example, the
area under any crop ‘A’ in a particular unit prices prevailing in the area should be
which belongs to a certain region. This area adopted, or those prevailing in the region
is expressed as a proportion of the total or in the country as a whole, in addition to
cropped area under all the selected crops. the local variations in prices which depend
Secondly, Ganguli, tried to obtain the index on circumstances like, the proximity to the
numbers of yield. This is found by dividing market or the relative nutritive character of
the yield per hectare for the entire region the product. Significant differences in price,
as the standard. This yield may be expressed and then add the results for the selected
as a percentage, the percentage may be number of crops together. The total is
regarded as the index number of yield. divided by the total acreage in the unit area
Thirdly, the proportion of the area under ‘A’ under the total selected crops. The result
and the corresponding index number of gives for each unit area a figure of money
yield were multiplied. There are two value per acre/hectare under the crops
advantages which are apparent by using this considered. So far as the energy coefficient
method, i.e., (a) the relative importance of is concerned, an index based on nutritional
the crop ‘A’ in that unit of study is assessed factor ignores local variations because of the
(as indicated by the proportion of the absence of data. Kendall, therefore,
cropped area which is under ‘A’ and (b) the suggested starch equivalent as the most
yield of the crop ‘A’ in comparison to the suitable unit. While calculating a coefficient
regional standard. The product thus based on starch equivalent it should be
obtained indicates actually an index of the decided:
contribution of the crop’A’ to the (a) whether a gross or net digestible energy
productivity of the unit considered. figure is to be taken,
• Kendall (1939) treated it as a mathematical (b) whether any allowance is to be made for
problem and initiated a system of four byproducts, such as - wheat and barley
GUIDANCE
coefficients : (a) productivity coefficient, (b) IAS
straws or the green stalks of maize, jowar,
ranking coefficient, (c) money value MORE THAN A COACHING.....
and bajra, and
coefficient, and (d) starch equivalent or
(c) whether any account should be taken of the
energy coefficiency. Kendall pointed out,
fact that the energy in certain foods has first
that the productivity coefficient and the
to be fed to livestock and then wheat and
ranking coefficient are concerned only with
milk is used for human consumption. The
the yield per acre, but are not in any way
basic question that arises in this technique
weighted according to the volume of
is whether the gross starch equivalent of
production, He, therefore, evolved a
the various crops should be considered or
measure of crop productivity by using index
the net equivalent. Net energy refers to the
number technique. In this technique the
amount of energy for work and body
yield of different crops are expressed in
building, whereas a gross figure includes the
terms of some common units of
energy employed in the digestive process
measurement. Kendall pointed out, that
of the consuming animal and similar non-
there are two common units which can be
realisable forms..
taken into consideration : first money value
‘as expressed in price’ and second energy
‘as expressed in starch equivalent’. In case Some sources to enhance the agricultural
of money value index, there is one major productivity are:
difficulty, that price data for certain crops • Mechanization
are not available, for example, there are
many vegetables and bears which are grown • High yield varieties, which were the basis
mostly for the consumption on the farms of the Green revolution
and their price data are not maintained in • Fertilizers: Primary plant nutrients:
contrast to cereal crops whose data are nitrogen, phosphorus and potassium and

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secondary nutrients such as sulfur, zinc, alleviate poverty in poor and developing
copper, manganese, calcium, magnesium countries, where agriculture often employs
and molybdenum on deficient soil the greatest portion of the population. As
• Education in management and farms become more productive, the wages
entrepreneurial techniques to decrease earned by those who work in agriculture
fixed and variable costs and optimise increase. At the same time, food prices
manpower decrease and food supplies become more
stable. Labourers therefore have more
• Liming of acid soils to raise pH and to
money to spend on food as well as other
provide calcium and magnesium
products. This also leads to agricultural
• Irrigation growth. People see that there is a greater
• Herbicides opportunity to earn their living by farming
• Genetic engineering and are attracted to agriculture either as
owners of farms themselves or as
• Pesticides labourers.
• Increased plant density • However, it is not only the people
• Animal feed made more digestible by employed in agriculture who benefit from
processing increases in agricultural productivity. Those
• Keeping animals indoors in cold weather employed in other sectors also enjoy lower
food prices and a more stable food supply.
Their wages may also increase.
Importance of agricultural productivity
• Agricultural productivity is becoming
• The productivity of a region’s farms is increasingly important as the world
important for many reasons. Aside from population continues to grow. India, one of
providing more food, increasing the the world’s most populous countries, has
productivity of farms affects the region’s taken steps in the past decades to increase
prospects for growth and competitiveness its land productivity. Forty years ago, North
on the agricultural market, income
distribution and savings, GUIDANCE IAS
India produced only wheat, but with the
and labour advent of the earlier maturing high-yielding
migration. MORE THAN A COACHING.....
wheats and rices, the wheat could be
• An increase in a region’s agricultural harvested in time to plant rice. This wheat/
productivity implies a rice combination is now widely used
more efficientdistribution of scarce throughout the Punjab, Haryana, and parts
resources. As farmers adopt new techniques of Uttar Pradesh. The wheat yield of three
and differences, the more productive tons and rice yield of two tons combine for
farmers benefit from an increase in their five tons of grain per hectare, helping to
welfare while farmers who are not feed India’s 1.1 billion people.
productive enough will exit the market to
seek success elsewhere.
B. AGRICUTURE INPUT
• As a region’s farms become more
productive, its comparative advantage in The most essential inputs required for
agricultural products increases, which agriculture:-
means that it can produce these products at 1. Seed 2. Fertilizer 3. Farm Power 4.
a lower opportunity cost than can other Implements Machinery 5. Irrigation.
regions. Therefore, the region becomes
more competitive on the world market,
Seed:
which means that it can attract
more consumers since they are able to buy • Seed is technically defined as ripened ovule
more of the products offered for the same containing embryo. Another definition says
amount of money. that the seed is a living embryo which is vital
and basic input for attaining sustained
• Increases in agricultural productivity lead
growth in agricultural production in
also to agricultural growth and can help to

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different agro-climatic conditions. The requirements of the crop and therefore has
embryo in the seed remains almost to be made up through the application of
suspended for sometimes and then revives fertilizers.
to new development. • The crops and their varieties vary in the
• Seed is the symbol of beginning in scientific nutrient requirement and to reap the
agriculture, seed is the basic input and the benefits of the full potential a balanced
most important catalyst for other inputs to application of plant nutrient is a must. The
be cost effective. For ensuring sustainability three major elements are nitrogen,
the seed supports high productivity, phosphorus, and potash known as NPK.
enhancing profitability, creating bio- There is a certain proportion in which these
diversity at a reasonable level and gives elements are required by the plants.
environmental protection. Thus the seed • The fertilizers currently used are urea,
plays a vital and remarkable role in di-ammonium-phosphate, mutate of
agriculture. potash, ammonium sulphate, sodium
• The globalization of market and the recent nitrate etc. These fertilizers have different
meet of the General Agreement on Tariff composition in terms of the three
and Trade will call for competitiveness and elements. As per recommendation of
efficiency in the seed sector and its utility scientists a calculation is made depending
in terms of productivity, risk coverage, on the source of OM and fertilizer and it is
nutritional qualities and adaptability. calculated as to how much quantity of these
Fertilizer: OM and fertilizer be mixed for the basal or
later applications.
• In the traditional agriculture nutrient supply
to plants was from the organic sources • Since these fertilizers become an essential
except a few fertilizers like sodium nitrate, part of the modern farming these should
(NaNO3, or ammonium sulphate (NH4SO4) be available to the farmers in each season
was used which were used by progressive in the quantity required at the reasonable
fanners otherwise farm yard manure, cost and at the time needed.
compost and oilcakes like GUIDANCE
neem were • The IAS
ideal utilization of fertilizer could only
applied to soil. MORE THAN A COACHING.....
be possible when proper marketing of this
• These organic manures supplied a smaller important input is undertaken. It is,
percentage of major nutrients to plant as therefore, important to predict the demand
well as micro-nutrients but there were for fertilizers with reasonable accuracy at
other ancillary advantages : these organic the national and regional levels.
manures improved the soil fertility in an • The idea of demand is sound, but it is useful
indirect manner by improving the physical tool only when the systematic distribution
and biological properties of soil like the is well organised. The whole exercise will
water holding capacity of soil increased in be less useful if farms are not supplied with
direct proportion of the supply of OM the type of fertilizer they want, at the time
(organic matter), by the improvement in soil they need them, in quantities they require,
colour the heat absorbing capacity and at the reasonable price.
increased, the OM made the soil more pours
• Neglect of these aspects of distribution
by improving the soil structure resulting in
could lead to the serious imbalance of the
proper aeration. In addition the population
demand and supply at the farm level. The
of beneficial microorganism increased
performance of the system of distribution
which readily released the nutrient for the
is thus an extremely important
plant intake.
consideration in estimating demand for
• With the development of scientific fertilizers. It is regretful that it is a neglected
agriculture and introduction of modern area.
technology the importance of chemical
Farm Power:
fertilizer increased. Mere application of
organic matter does not fulfill the nutrient • The world is entering in the twenty-first

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century so that every sector of the economy processed products of agricultural origin.
should prepare itself to face the challenges Therefore, it is necessary to adjudge the
of the coming century. There will be need effective power position by the turn of the
to produce more than what is being century.
produced and there would be greater
demand for food, fiber and other
Agro-Industries in Supply and Service:
commodities.
• The land area is limited and moreover from
• In the modernization of agriculture the role
of agro-industries have to play a
the already scarce cultivated or cultivable
tremendous role.
area the land shall be coming under the
agricultural uses like housing, • The agro-industries supply inputs to
entertainment etc. With the technological agriculture to sustain modern techniques in
development more power will be needed agricultural production like fertilizers, plant
to fulfill the growing demand. protection chemicals, now a trend is
• Farm power and productivity are co-related towards the indigenous products like neem
because to produce more per unit land the products and bio-parasites and also the
use of machinery and equipment are processing of the agricultural produce, like
inevitable. oil extraction, hulling, preparation of fruit
products into processed goods like jelly,
jams, pickles etc.
The main sources of power in agriculture are:
1. Bullocks, Irrigation:
2. He-buffaloes (Specially in Tarai area),
• Irrigation is the artificial application of water
3. Camel (in desert area), to crops. In the rainy season if the spread of
4. Horses (in European countries), rainfall is evenly distributed and rains in the
5. Machines (used universally). right intensity the crops are raised as
rainfed crops, if the rainfall is erratic and
GUIDANCE IAS then supplemental irrigation is
insufficient
Pumps for Irrigation: needed.
MORE THAN A COACHING.....In the Rabi season, during the

• There is more reliance on electrical power period of receding monsoon irrigation is

for irrigation purposes. Tube well and needed which depends on the nature of the
pumping sets are run with electricity. crop and its requirement.
Besides, irrigation the use of electric power • During this period the crop production is
are made for stationary works such as chaff highly successful if assured irrigation is in
cutting, threshing, winnowing. existence. Therefore, irrigation is as much
• Plant protection equipment are operated a basic infrastructure in the development
with petroleum or diesel power. Now efforts as roads, market facilities, credit
electronic sprayer and dusters are used but agencies and other rural structures are.
not common for it has tremendous • In itself, it cannot do much by way of
efficiency in operation as well as duty. development but combined with other
• Electric power and tractor power are used factors it creates a potentially favourable
for harvesting and threshing. Combine is situation for agricultural development.
used for harvesting and threshing When irrigation permits double or multiple
simultaneously but the disadvantage is that cropping its potential to promote changes
bhusa gets lost in the field itself. As the is particularly great.
years roll on there will be larger use of the • Introduction of irrigation appreciates land
power in agricultural operation. value, it helps in adoption of innovations
• With the increase in scope for export of like double or multiple cropping but for this
agricultural commodities the power would purpose other infrastructures need to exist.
become a must specially for the supply of

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7. Food and Nutrition Problems preschool children in low-income countries

are also most vulnerable to VAD. Africa has
the highest prevalence of clinical VAD,
Relationship between Food, hunger and while the highest number of clinically
nutrition affected are in South-East Asia. In children,
• This seems an obvious concept — if one VAD is the primary cause of preventable
doesn’t eat enough food to fill their current severe visual impairment and blindness.
physiological needs, they feel hunger. The WHO estimates that between 250 000
Hunger can be temporary, such as not having and 500 000 VAD children become blind
enough to eat for a meal or a day, or can be every year, and approximately half of them
enduring when the person does not get die within a year. Vitamin A deficiency also
enough to eat to maintain his or her reduces resistances to infections so that the
physical needs over many days, weeks, risk of severe illness and death from
months or years. When a person has hunger common childhood infections, particularly
for a sustained period of time, he or she can diarrhoeal diseases and measles.
develop malnutrition, either mild or severe, 4. Iron deficiency and anaemia Iron deficiency
depending on one’s body needs and food is the world’s most widespread nutritional
intake. disorder, affecting both developing and
Various Nutrition Related Problems developed countries. In developing
countries the risk of anaemia is increased
1. Protein-energy malnutrition The WHO
because iron deficiency is so often
estimates that currently 150 million children
accompanied by other micronutrient
under 5 years of age (26.7% of the world’s
deficiencies, parasitic infections and
children in this age group) are malnourished
chronic infections such as HIV. In the poorest
when measured in terms of weight for age,
populations the usual diet lacks variety and
and 182 million are stunted. This global
is based on cereals that are low in iron and
burden of malnutrition is rooted in poverty,
contain high levels of iron absorption-
underdevelopment, and inequality. But in
inhibiting substances. The WHO estimates
some areas rapid population GUIDANCE
thatIAS
growth is an
nearly 2000 million people worldwide,
important contributing factor. In AfricaMORE THAN A CO
orACHING.....
approximately one-third of the world’s
natural disasters, wars, population
population are anaemic, and iron deficiency
displacement and civil disturbances have
may affect more than twice as many. Iron
also contributed to the continuous increase
deficiency and anaemia (IDA) affects all age
in the prevalence of malnutrition. However,
groups, and their impact presents a major
geographically it is Asia (especially South
hurdle to national development.
Asia) that is home to more than two thirds
of the world’s malnourished children 5. Overweight and obesity At the other end
compared with the 25.6% in Africa and 2.3% of the malnutrition scale, obesity threatens
in Latin America. to become the leading cause of chronic
disease in the world. Paradoxically
2. Iodine deficiency disorders Iodine
coexisting with undernutrition, evidence
deficiency disorders affect more than 740
suggests that overweight and obesity have
million people, 13% of the world’s
reached epidemic proportions globally.
population, while 30% of the remainder are
That is, both developed and developing
at risk. These disorders constitute the single
countries are seriously affected.
greatest cause of preventable brain damage
Furthermore, because the problem is
in the fetus and infant, and of retarded
increasing rapidly in children as well as
psychomotor development in young
adults, the true health consequences may
children. Preschool children and pregnant
become fully realized only later. In 1995
women in lowincome countries are at
there were an estimated 200 million obese
greatest risk, posing serious public health
adults worldwide, and 18 million children
problems in 130 developing countries.
under 5 years of age were classified as
3. Vitamin A deficiency Pregnant women and overweight. In 2000 the number of obese

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adults was over 300 million. In many • Under-nutrition is not as visible as severe
developed countries more than 50% of the malnutrition, hence receiving less media
population is overweight. attention than famines or outright
6. Cardiovascular disease Although many CVD starvation; nevertheless, it is a much larger
can be treated or prevented, WHO and chronic problem. Severe malnutrition,
estimates that 17 million people die of CVD particularly in young children and infants,
each year, with one heart attack every 4 s can lead to death.
and one stroke every 5 s in 2001.41 In the Extent of the Problem
last decade or so there has been a • According to the United Nations report on
proliferation of low-fat, fat-reduced and fat- world food security and nutrition, with
free food products available to help climate change and increasing conflict,
consumers eat a more healthy diet and global hunger has increased since 2016,
reduce their risk of chronic conditions such affecting 815 million people [FAO]
as CVD. Following these, some of the most .However, there is an indication of overall
exciting developments in functional food progress, as this number is down from an
science, based on a growing body of estimated 900 million undernourished
evidence, are those foods that have the people in 2000 (FAO, 2017).
potential to influence risk factors for CVD
• For two decades, leading up to the
millennium, global demand for food
Consequences of malnutrition increased steadily, along with growth in the
• Malnutrition involves a deficient, excess or world’s population, record harvests,
imbalanced intake of nutrients for proper improvements in incomes, and the
tissue and organ function, and it diversification of diets. As a result, food
encompasses both over-nutrition and prices continued to decline through 2000.
under-nutrition But beginning in 2004, prices for most grains
began to rise. Although there was an
• Over-nutrition, a condition of excess
increase in production, the increase in
nutrient and energy intake over time, may
GUIDANCE
be regarded as a form of malnutrition when IAS
demand was greater.
it leads to morbid obesity. • A COFood
MORE THAN ACHINstocks
G..... became depleted. And then,
in 2005, food production was dramatically
• Under-nutrition is caused by inadequate affected by extreme weather incidents in
food supply or inability to use the nutrients major food-producing countries. By 2006,
in food, possibly resulting in micronutrient world cereal production had fallen by 2.1
deficiencies, stunting (low height for age), percent. In 2007, rapid increases in oil prices
wasting (low weight for height), or increased fertilizer and other food
underweight (low weight for age). production costs.
• The term ‘Chronic malnutrition’ refers to • As international food prices reached
lower intake of nutrients than the body unprecedented levels, countries sought
needs over a long period of time .This type ways to insulate themselves from potential
of under-nutrition can cause young children food shortages and price shocks. Several
to be: food-exporting countries imposed export
 stunted in height, underweight, restrictions. Certain key importers began
 delayed in developmental capacities purchasing grains at any price to maintain
such as brain function, and domestic supplies.
 more prone to disease. • Under-nutrition can begin in the womb and
propagate across generations when a
Additionally, under-nutrition can cause:
mother who does not meet nutritional
 swollen and bleeding gums, intake requirements during pregnancy
 dizziness and fatigue, and gives birth to an already stunted . Under-
 decaying teeth, among other symptoms nutrition within the first 1,000 days of a
child’s life, also known as the window of

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opportunity, can lead to irreversible stunted • Chronically malnourished children are more
growth and has been associated with likely to become short adults that birth
impaired cognitive ability and reduced smaller infants who have lower educational
performance in school and later in life at achievement and economic status in
work. Studies have found that children who adulthood. This cycle carries on from mother
are born stunted or become stunted very to child when chronic under-nutrition
early in life have greater potential for continues generation to generation.
severe stunting and its long-term Stunting and its effects typically become
consequences into adulthood permanent because reversal usually means
changing the basic and underlying causes
of malnutrition.

GUIDANCE IAS
Measuring global progress in hunger reduction
Who is most at risk for under-nutrition? MORE THAN A COACHING.....
The most vulnerable are: against targets
• children under five and pregnant and The year 2015 marked the end of the
lactating women, monitoring period for the two
internationally agreed targets for hunger
• poor people, reduction:
• people who live in developing countries, • The first was the World Food
and Summit (WFS) goal. At the WFS, held in
• people who are displaced or who live in Rome in 1996, representatives of 182
conflict zones governments pledged ”... to eradicate
The World Health Organization (WHO) hunger in all countries, with an immediate
estimates that 98 million children under five view to reducing the number of
years of age are underweight, or about one undernourished people to half their present
in every six children. The prevalence of level no later than 2015".
undernourished people is the highest in • The second was the formulation of the First
Africa, but the absolute number of Millennium Development Goal (MDG 1),
undernourished children is highest in Asia. which includes among its targets “cutting by
Prevalence is the proportion of a population half the proportion of people who suffer
affected by a disease or showing a certain from hunger by 2015”.
characteristic (expressed as a percentage), The Millennium Development Goals and food
and absolute number is simply the count of In 2000, world leaders gathered at the UN
people in the population with a disease or to shape a broad vision to fight poverty,
showing a certain characteristic.

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which was translated into eight Millennium • Zero stunted children under the age of two
Development Goals (MDGs) and remained, • 100% access to adequate food all year round
until 2015, the overarching
• All food systems are sustainable
development framework for the world. At
the end of the MDG period in 2015, there • 100% increase in smallholder productivity
was a final assessment of progress made and income
during the MDG period. • Zero loss or waste of food
The global mobilization behind the Food and the SDGs
Millennium Development Goals has Food is also at the core of the Sustainable
produced the most successful anti-poverty Development Goals (SDGs), the UN’s
movement in history. The MDG target of development agenda for the 21st century.
reducing by half the proportion of people The second of the UN’s 17 SDGs is to “End
living in extreme poverty was achieved in hunger, achieve food security and improved
2010, well ahead of the 2015 deadline. nutrition and promote sustainable
• The proportion of undernourished people agriculture”. Achieving this goal by the
in the developing regions has fallen by target date of 2030 will require a profound
almost half. change of the global food and agriculture
• One in in seven children worldwide are system. Some of the components of this
underweight, down from one in four in 1990. goal are:
As can be seen from the above results of • Ending hunger, and ensuring access by all
the MDGs, there was much progress in people to safe, nutritious food;
relation to food and hunger between 2000 • Ending all forms of malnutrition;
and 2015. However, a lot more work needs • Doubling the agricultural productivity and
to be done. That work will now be the focus incomes of small-scale food producers;
of the Sustainable Development Goals.
• Ensuring sustainable food production
Zero Hunger challenge systems;
GUIDANCE
The United Nations Secretary-General •
launched the Zero Hunger Challenge in 2012
IASinvestment in agriculture;
Increasing
MORE THAN A COACHING..... and preventing trade restrictions
during the Rio+20 World Conference on • Correcting
Sustainable Development. The Zero Hunger and distortions in world agricultural
Challenge was launched to inspire a global markets;
movement towards a world free from • Adopting measures to ensure the proper
hunger within a generation. It calls for: functioning of food commodity markets.

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8. Food security Food security as multi-dimensional

phenomenon
• National and international political action
• Food security, as defined by the United
seems to require the identification of
Nations’ Committee on World Food
simple deficits that can be the basis for
Security, means that all people, at all times,
setting of targets, thus necessitating the
have physical, social, and economic access
adoption of single, simplistic indicators for
to sufficient, safe, and nutritious food that
policy analysis. Something like the “State
meets their food preferences and dietary
of global food insecurity” analysis has to be
needs for an active and healthy life.
undertaken. Since food insecurity is about
• Food security as a concept originated only risks and uncertainty, the formal analysis
in the mid-1970s, in the discussions of should include both chronic sub-nutrition
international food problems at a time of and transitory, acute insecurity that reflects
global food crisis. The initial focus of economic and food system volatility.
attention was primarily on food supply
• Such formal exploration is usefully
problems - of assuring the availability and
complemented by multi-criteria analysis
to some degree the price stability of basic
(MCA) of food security. This should lead to
foodstuffs at the international and national
qualitative, if not quantitative,
level. That supply-side, international and
comparisons. Where the focus of
institutional set of concerns reflected the
investigation is on sub-nutrition, then the
changing organization of the global food
linkages between sub-nutrition and
economy that had precipitated the crisis. A
inadequate food intake need to be carefully
process of international negotiation
explored. Some elements that need to be
followed, leading to the World Food
considered are:
Conference of 1974, and a new set of
institutional arrangements covering  sources of dietary energy supply - taking
information, resources for promoting food account, for example, of different foods,
security and forums for dialogue on policy trends in the acquisition of food from
issues. GUIDANCE IAS to marketing;
subsistence
MORE THAN A COACHING.....
• The issues of famine, hunger and food crisis  climatic variability as a source of volatility
were also being extensively examined, and short-term nutritional stress;
following the events of the mid 1970s. The
outcome was a redefinition of food security,  health status, especially changes in the
which recognized that the behavior of incidence of communicable diseases, most
potentially vulnerable and affected people obviously HIV/AIDS;
was a critical aspect.  spatial distribution within countries of
• Finally, perhaps crucially important, factor poverty and forms of food insecurity,
in modifying views of food security was the drawing on evidence from vulnerability
evidence that the technical successes of the assessment and mapping
Green Revolution did not automatically and
rapidly lead to dramatic reductions in
poverty and levels of malnutrition. These
problems were recognized as the result of
lack of effective demand.

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GUIDANCE IAS
MORE THAN A COACHING.....

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Challenges to food security 4.

More foodless days:- In Nigeria, 27% of
families experience foodless days. In India,
1.
GUIDANCE
Rising population:- There will be 219,000
people at the dinner table tonight who it is IAS
24%; in Peru, 14%.
MORE THAN A COACHING.....
were not there last night, many of them with The world is in transition from an era
empty plates. dominated by surpluses to one defined by
2. Rising incomes, changing diets:- Today, with scarcity.
incomes rising fast in emerging economies, 5. Increasing soil erosion:- Nearly a third of the
there are at least 3 billion people moving world’s cropland is losing topsoil faster than
up the food chain toward Westernized new soil is forming. This reduces the land’s
diets. They consume more grain-intensive inherent fertility. Future food production is
livestock and poultry products. also threatened by soil erosion.
As incomes go up, people tend to eat more Now, nearly a third of the world’s cropland
meat. China’s meat consumption per is now losing topsoil faster than new soil is
person is still only half that of the United forming..
States. That leaves a huge potential for 6. Climate change:- The generation of farmers
future demand growth. now on the land is the first to face manmade
3. Falling water tables:- In India some 190 climate change.
million people are being fed with grain Agriculture as it exists today developed over
produced by overpumping groundwater. 11,000 years of rather remarkable climate
Aquifer depletion now threatens harvests stability. It has evolved to maximize
in the big three grain producers — China, production within that climate system. Now,
India and the United States—that together suddenly, the climate is changing. With each
produce half of the world’s grain. passing year, the agricultural system is more
and more out of sync with the climate
system.

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7. Melting water reserves:- At no time since percent and still produce the same yields.
agriculture began has the world faced such Further efficiency could be gained through
a predictably massive threat to food adjustments in the timing, placement and
production as that posed by the melting type of fertilizer.
mountain glaciers of Asia. 3. Raise low water productivity
Mountain glaciers are melting in the Andes, Water is a major issue. Improving irrigation
the Rocky Mountains, the Alps and systems and planting crops that use less
elsewhere. But nowhere does melting water would be an effective way to tackle
threaten world food security more than this. For example, rice and sugar cane are
in the glaciers of the Himalayas and on the among the crops that need the most water.
Tibetan Plateau that feed the major rivers One way to encourage change would be to
of India and China. provide economic incentives, but that can
Ice melt helps sustain these rivers during change based on regional differences and
the dry season. In the Indus, Ganges, Yellow cultural tastes.
and Yangtze river basins, where irrigated 4. Target food for direct consumption
agriculture depends heavily on rivers, the
A lot of caloric efficiency is lost when crops
loss of glacial-fed, dry-season flow will
are converted for animal feed and other
shrink harvests and could create potentially
non-food uses. If these crops were used
unmanageable food shortages.
directly to feed people they could provide
8. Flattening yields:- After several decades of enough calories for 4 billion people.
raising grain yields, farmers in the more
5. Reduce food waste
agriculturally advanced countries have
recently hit a glass ceiling. That production Globally, 30-50 percent of food production
ceiling is imposed by the limits of goes to waste because of inefficient
photosynthesis itself. preparation or inadequate storage facilities.
The United States is one of the biggest
In China, rice yields are now just 4% below
culprits for this and needs an agricultural
Japan’s. Unless China can raise its yields
GUIDANCE
above those in Japan, which seems unlikely, IAS
land base that is 7 to 8 times larger than a
land base in India to compensate for this
it, too, is facing a plateauing of rice yields.
MORE THAN A COACHING.....
waste. Reducing food waste in the United
Yields of wheat, the world’s other food States, India and China could feed 413
staple, are also plateauing in the more million people per year.
agriculturally advanced countries. For
example, France, Germany and the United
K ingdom — Europe’s leading wheat Famine: causes, effects and remedies
producers — had been raising wheat yields • The literal meaning of famine is “extreme
for several decades. Roughly a decade ago, inadequacy and the scarcity of food.” Famine
all three hit plateaus. is the phenomenon which occurs in a vast
terrestrial area due to various
environmental and biological reasons. Some
Food Security Strategies
of the prime reasons are population
1. Close the yield gap imbalance, scarcity of water or lack of
Closing the gap between what is being rainfall, population imbalance, crop failure,
produced and what could be produced government policies.
would both reduce the need to clear land • This phenomenon is usually accompanied
for agriculture and feed 850 million people. or followed by regional malnutrition,
The next points address how this gap can starvation, epidemic, and increased
be diminished. mortality.
2. Use fertilizer more efficiently • Every inhabited continent in the world has
It is estimated that the use of fertilizers with experienced a period of famine throughout
nitrogen and phosphorus on wheat, rice and history. In the 19th and 20th century, it was
maize crops could be reduced by 13-29 generally Southeast and South Asia, as well

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9. World industries: locational industry.

patterns and problems • The jute mills in West Bengal, sugar mills in
Uttar Pradesh, cotton textile mills in
Maharashtra and Gujarat are concentrated
Factors Influencing the Location of Industries close to the sources of raw materials for this
• Many important geographical factors very reason. Industries like iron and steel,
involved in the location of individual which use very large quantities of coal and
industries are of relative significance, e.g., iron ore, losing lot of weight in the process
availability of raw materials, power of manufacture, are generally located near
resources, water, labor, markets and the the sources of coal and iron ore.
transport facilities. But besides such purely • Some of the industries, like watch and
geographical factors influencing industrial electronics industries use very wide range
location, there are factors of historical, of light raw materials and the attractive
human, political and economic nature influence of each separate material
which are now tending to surpass the force diminishes. The result is that such industries
of geographical advantages. Consequently, are often located with no reference to raw
the factors influencing the location of materials and are sometimes referred to as
industry can be divided into two broad ‘footloose industries’ because a wide range
categories i.e. of locations is possible within an area of
I. Geographical factors, and sufficient population density.
II. Non-geographical factors. 2. Power:
I. Geographical Factors: • Regular supply of power is a pre-requisite
for the localisation of industries. Coal,
Following are the important geographical
mineral oil and hydro-electricity are the
factors influencing the location of
three important conventional sources of
industries.
power. Most of the industries tend to
1. Raw Materials: concentrate at the source of power.
• GUIDANCE
The significance of raw materials in • The IAS
iron and steel industry which mainly
manufacturing industry is so fundamentalMORE THAN A COACHING.....
depends on large quantities of coking coal
that it needs no emphasising. Indeed, the as source of power are frequently tied to
location of industrial enterprises is coal fields. Others like the electro-
sometimes determined simply by location metallurgical and electro-chemical
of the raw materials. Modem industry is so industries, which are great users of cheap
complex that a wide range of raw materials hydro-electric power, are generally found
is necessary for its growth. in the areas of hydro-power production, for
• Further we should bear in mind that finished instance, aluminium industry.
product of one industry may well be the raw • As petroleum can be easily piped and
material of another. For example, pig iron, electricity can be transmitted over long
produced by smelting industry, serves as the distances by wires, it is possible to disperse
raw material for steel making industry. the industry over a larger area. Industries
Industries which use heavy and bulky raw moved to southern states only when hydro-
materials in their primary stage in large power could be developed in these coal-
quantities are usually located near the deficient areas.
supply of the raw materials.
• Thus, more than all other factors affecting
• It is true in the case of raw materials which the location of large and heavy industries,
lose weight in the process of manufacture quite often they are established at a point
or which cannot bear high transport cost or which has the best economic advantage in
cannot be transported over long distances obtaining power and raw materials.
because of their perishable nature. This has
• Tata Iron and Steel Plant at Jamshedpur, the
been recognised since 1909 when Alfred
new aluminium producing units at Korba
Weber published his theory of location of
(Chhattisgarh) and Renukoot (Uttar

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Pradesh), the copper smelting plant at • It is becoming more and more true that
Khetri (Rajasthan) and the fertilizer factory industries are seeking locations as near as
at Nangal (Punjab) are near the sources of possible to their markets; it has been
power and raw material deposits, although remarked that market attractions are now
other factors have also played their role. so great that a market location is being
3. Labour: increasingly regarded as the normal one,
and that a location elsewhere needs very
• No one can deny that the prior existence of
strong justification.
a labour force is attractive to industry unless
there are strong reasons to the contrary. • Ready market is most essential for
Labour supply is important in two respects perishable and heavy commodities.
(a) workers in large numbers are often Sometimes, there is a considerable material
required; (b) people with skill or technical increase in weight, bulk or fragility during
expertise are needed. Estall and Buchanan the process of manufacture and in such
showed in 1961 that labour costs can vary cases industry tends to be market oriented.
between 62 per cent in clothing and related 6. Water:
industries to 29 per cent in the chemical • Water is another important require-ment
industry; in the fabricated metal products for industries. Many industries are
industries they work out at 43 per cent. established near rivers, canals and lakes,
• In our country, modem industry still requires because of this reason. Iron and steel
a large number of workers in spite of industry, textile industries and chemical
increasing mechanisation. There is no industries require large quantities of water,
problem in securing unskilled labour by for their proper functioning.
locating such industries in large urban • Significance of water in industry is evident
centres. Although, the location of any from Table 27.3. Also it requires 36,400 litres
industrial unit is determined after a careful of water to produce one kwh of thermal
balancing of all relevant factors, yet the electricity. Further, it is worth noting that
light consumer goods and agro-based water used in industries gets polluted and
industries generally require aGUIDANCE
plentiful of IAS not available for any other
is therefore
labour supply. purpose.
MORE THAN A COACHING.....
4. Transport: Requirement of Water in Industry:
• Transport by land or water is necessary for Name of Amount of water
the assembly of raw materials and for the
the industry required in litres/tonne
marketing of the finished products. The
development of railways in India, Steel 300,000
connecting the port towns with hinterland Oil refining 25,600
determined the location of many industries Rayon 1,000,000
around Kolkata, Mumbai and Chennai. As
industrial development also furthers the Paper from wood 173,000
improvement of transport facilities, it is
difficult to estimate how much a particular 7. Site:
industry owes to original transport facilities
• Site requirements for industrial
available in a particular area.
development are of considerable
5. Market: significance. Sites, generally, should be flat
• The entire process of manufacturing is and well served by adequate transport
useless until the finished goods reach the facilities. Large areas are required to build
market. Nearness to market is essential for factories. Now, there is a tendency to set
quick disposal of manufactured goods. It up industries in rural areas because the cost
helps in reducing the transport cost and of land has shot up in urban centres.
enables the consumer to get things at 8. Climate:
cheaper rates.
• Climate plays an important role in the

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establishment of industries at a place. Harsh pollution of air and water and for avoiding
climate is not much suitable for the their heavy clustering in big cities, has
establishment of industries. There can be become no less an important locational
no industrial development in extremely factor.
hot, humid, dry or cold climate. • There is an increasing trend to set up all
• The extreme type of climate of north-west types of industries in an area, where they
India hinders the development of derive common advantage of water and
industries. In contrast to this, the moderate power and supply to each other the
climate of west coastal area is quite products they turn out. The latest example
congenial to the development of in our country is the establishment of a large
industries. Because of this reason, about 24 number of industrial estates all over India
per cent of India’s modem industries and 30 even in the small-scale industrial sector.
per cent of India’s industrial labour is • It is of relevance to examine the influence
concentrated in Maharashtra-Gujarat region of India’s Five Year plans on industrial
alone. location in the country. The emergence of
• Cotton textile industry requires humid suitable industries in south India around
climate because thread breaks in dry new nuclei of public sector plants and their
climate. Consequently, majority of cotton dispersal to backward potential areas has
textile mills are concentrated in taken place due to Government policies.
Maharashtra and Gujarat. Artificial • The state policy of industrial location has a
humidifiers are used in dry areas these days, greater hand in the establishment of a
but it increases the cost of production. number of fertiliser factories, iron and steel
plants, engineering works and machine tool
II. Non-Geographical Factors: factories including railway, shipping, aircraft
and defence installations and oil refineries
• Now-a-days alternative raw materials are
in various parts in the new planning era in
also being used because of modern
free India.
scientific and technological developments.
Availability of electric power GUIDANCE
supply over • We IASmay conclude by noting that the
wider areas and the increasing mobility of traditional
MORE THAN A COACH ING..... explanation of a location of

labour have reduced the influence of industry at a geographically favourable

geographical factors on the location of point is no longer true. Location of oil
industries. refinery at Mathura, coach factory at
Kapurthala and fertiliser plant at Jagdishpur
• The non-geographical factors are those
are some of the results of government
including economic, political, historical and
policies.
social factors. These factors influence our
modern industries to a great extent. 3. Industrial Inertia:
Following are some of the important non- • Industries tend to develop at the place of
geographical factors influencing the their original establishment, though the
location of industries. original cause may have disappeared. This
1. Capital: phenomenon is referred to as inertia,
sometimes as geographical inertia and
• Modem industries are capital-intensive and
sometimes industrial inertia. The lock
require huge investments. Capitalists are
industry at Aligarh is such an example.
available in urban centres. Big cities like
Mumbai, Kolkata, Delhi, and Chennai are 4. Efficient Organisation:
big industrial centres, because the big • Efficient and enterprising organisation and
capitalists live in these cities. management is essential for running
2. Government Policies: modem industry successfully. Bad
management sometimes squanders away
• Government activity in planning the future
the capital and puts the industry in financial
distribution of industries, for reducing
trouble leading to industrial ruin.
regional disparities, elimination of

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• Bad management does not handle the nickel it has increased toughness and
labour force efficiently and tactfully, ductility, and becomes highly resistant to
resulting in labour unrest. It is detrimental corrosion, so it is used for armour planting.
to the interest of the industry. Strikes and The addition of 12 per cent manganese to
lock-outs lead to the closure of industries. steel imparts great toughness and
Hence, there is an imperative need of resistance to abrasion. Similarly addition of
effective management and organisation to cobalt, molybdenum, tungsten, vanadium,
run the industries. etc., produce special type of steel useful for
5. Banking Facilities: various purposes.
• Establishment of industries involves daily Localisation of Iron and Steel Industry
exchange of crores of rupees which is • The establishment, development and
possible through banking facilities only. So concentration of iron and steel industry
the areas with better banking facilities are requires many things. It must collect raw
better suited to the establishment of material and power resources to produce
industries. things. It requires finances, machinery and
6. Insurance: labour to keep it running. It requires a
market to sell its produce and above all it
• There is a constant fear of damage to
requires transport facilities. At the early
machine and man in industries for which
period of growth, location of iron and steel
insurance facilities are badly needed.
industry was entirely governed by the ratio
of raw material assembling cost and
Key Global Industries at glance: distribution cost of finished product to the
1. IRON AND STEEL INDUSTRY consumer. While considering localisation of
iron and steel industry, two sets of factors
• The iron and steel industry is the are important. The primary factor is, of
fundamental or basic manufacturing course, avail-ability of raw material, market,
industry. The sturdy structure of modern energy supply and labour. While second
industrial world is made of steel. Most of category of factors are the factors of
the subsidiary industries, GUIDANCE
such as IAS
survival, such as (i) establishment costs like
automobiles, locomotive, ship-building, MORE THAN A COACHING.....
taxes, duties, rent, etc., and (ii) production
machine-tools, engineering, etc., are cost, e.g., labour, wage, transport charges,
directly linked with iron and steel industry. sales tax, income tax, etc.
The quality and quantity of the iron and
steel industry of a country, greatly • Basically, iron and steel industry is a
influ-ences the nature and type of the resource-based industry; therefore, its
industrial development. location is determined by raw materials as
well as by availability of power resources.
• Iron and steel industry truly forms the basis The capital, market and transport are the
not only of the industrial structure but of other factors influencing the localisation of
the very way of life in the modern world. iron and steel industry.
The economic growth of both developed
and developing country is largely • Raw material and power resources are key
dependent on its steel-making capacity. components of the establishment,
The usefulness of iron and steel as a metal development and concentration of iron and
is because of it’s certain qualities such as: steel industry. Many of the world’s famous
(i) great strength and toughness, (ii) great steel centres of today have had their
elasticity, (iii) relatively high ductility, (iv) inception during the 19th and early 20th
low cost and ease of production, (v) centuries at the places where iron ore and/
alloyability, etc. Iron can be alloyed with or coal was available. Although, technology
many other metals to produce special steels of production of steel now has changed but
for diverse and specific needs. Small the factor of raw material still plays a vital
amounts of chromium in steel improves role.
hardening qualities. When alloyed with • Both coal and iron ore are localised raw

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materials. In earlier days, roughly two tons produced are free from blow holes. It
of coal was necessary for smelting one ton combines with sulphur and thereby
of iron ore yielding, say 50 per cent metal. prevents formation of iron sulphide. Iron
Thus, two tons of coal and one ton of iron sulphide’s presence in steel causes
ore produced half a ton of finished steel. weakness and brittleness of the metal in
• As suggested by ‘least-cost location’ school the hot stage and this is popularly known as
headed by Weber, all the raw materials and “reds hotness”. The manganese
energy resources used to manufacture iron requirement for steel making is about 20
and steel are localised and impure or per cent. This, even if it is not available
weight-losing material. So, the Weberian locally, the same can be obtained from other
concept reveals that coal area is the most areas. The limestone and dolomite are used
suitable location, as far as transport costs for purification purposes. In most of the iron
are concerned. Initially, iron and steel plants and steel-producing centres, there is no
had a clear tendency towards coal areas. dearth of supply of limestone and
But, with the passage of time, new dolomite.
technologies were introduced which were, • Capital and market are also important
on the one hand, fuel saving, and on the factors in localisation of industries,
other hand, the requirement of iron ore including iron and steel industry. In
volume also came down. The LD converters establishment of iron and steel industry
and Oxygen processes need very little fuel. huge capital is required. The requirement
In fact, the continuous casting and of capital is fulfilled either by big corporates
introduction of electric furnaces do not or by government and other financial
require coal as fuel, rather it uses electric agencies. Similarly, the manufacturer must
energy, may be hydel or nuclear. The have access to markets. This market may be
continuous casting method is the direct of regional, national or international level.
conversion of steel from iron ore. It reduces Market based location is generally found in
fuel cost drastically. In this way coal area the countries where coal and iron ore
has lost much of its pre-eminence in the deposits are rare. As Japan is deficient in
local-isation of iron and steel GUIDANCE
industry. bothIAS
iron ore and coal and almost all raw
MORE THAN A COACHING.....are to be imported from overseas
materials
• Both iron ore-based and coal-based sites are
common for iron and steel industry. Iron ore countries, Japanese steel plants are mostly
based location is not a very rare market based.
phenomenon. They occur in Lorraine in • Transportation is another controlling factor
France, Duluth in USA, Bhadravati, of the location of iron and steel industry.
Vishakhapatnam in India, Corby in UK. The intermediate location, in some cases,
• Coal-based plant, in fact, at one time was gets distinct advantages in terms of the
the most sought after locations. Due to high accessibility with raw materials, market and
amount of weight loss during processing, transportation. The raw material based
early steel plants were mostly coal-based. industries are now facing disadvantages
The classical examples of coal-based because of depleting reserves of raw
locations are: Ruhr valley in Germany, New material. So, considering long-term survival
Castle in UK , Pittsburgh region in USA, of the industry, it is desirable for the
Bokaro, Durgapur and Jamshedpur in India. industries to select a location which can
provide sustained growth to the industry.
• The other raw materials required for iron
Apart from this, the drastic reduction of coal
and steel industry are manganese,
use and development of fuel economy also
limestone and dolomite, etc. Metallurgical
attracted industries to the areas where
manganese in the form of alloys with iron
transport is cheaper; for example, cheap
and silicon is used in the manufacture of
water route or break of bulk location, where
steel. It has a twin action: it acts as a
due to loading and unloading facilities, raw
deoxidiser and also as desulphuriser. In the
materials are available at a much cheaper
presence of oxygen it produces steel almost
rate.
free from iron oxides and the ingots thus

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• Apart from these locations, another type of Production and Distribution

lucrative location may occur, where more • The growth and development of iron and
than one factor is present, i.e., the steel industry is a reflection of global
combination of the three, iron ore, coal and economy. The iron and steel industry
market or the presence of any two among depicts a changing nature in its growth and
them. The most lucrative location evolves production pattern. In the mid-1970s, the
where coal, iron ore and market is present. relatively developed countries of North
This region offers maximum advantage from America, Western Europe and Japan
locational point of view. The iron-steel accounted for nearly two-third of the
industries of Alabama have all the world’s steel production. But gradually the
advantages. spatial pattern has changed and attention
• In some cases, after the development of has now shifted to the developing regions.
steel industries in coal mine regions, market • Towards the end of the last century, the
also developed. The Ruhr valley in Germany growth of steel production in countries like
and Donetz basin in Russia received this China, South Korea, Brazil and India has
type of locational advantages. changed the entire pattern of steel
• Some steel centres have also developed production in the world. Now main
near the ore-producing centres or at producers of iron and steel in the world are
intermediate centres between coal and iron China, Japan, USA, Russia, Germany, South
ore. This is because the railway or boats Korea, Brazil, Ukraine, India, France, Italy
carrying iron ore to the coal areas have to and Great Britain. The other steel-producing
return empty. To avoid this loss the carriers countries are South Africa, Australia,
charge lower freight rates for their return Austria, Netherlands, Czech Republic,
journey with coal. The ore-carrying railway Romania, Spain, Belgium, Sweden, etc.
or boats therefore, on their return journey • China is the leading producer of iron and
carry coal to the ore centres. Iron and steel steel in the world, which accounts for about
centres at Metz, Nancy, Longway in Lorraine 23.9 per cent production of pig iron and 17
(France) ore field where trains carrying iron
GUIDANCE
ore to the Ruhr basin steel towns (Germany)
perIAS
cent of crude steel of the world’s
production.
MORE THAN A COACHING..... Japan is the second largest
come back filled-up with coal. producer with 14.7 per cent pig iron and 13.9
• Nowadays, localisation of steel plants, each per cent crude steel production of the
of the three factors, i.e., coal, iron ore and world. USA once the highest producer now
the market, has equal importance. The ranks third in the world followed by Russia.
geographic coincidence of any two factors, India’s position is 9th in the iron and steel
however, determines the steel plant site. production and its production of pig iron and
The availability of power has also attracted crude steel accounts for 3.9 and 3.6 per cent
the establishment of steel plants. Several respectively.
steel plants now have developed near • The spatial distribution pattern of iron and
hydro-electric station. In fact, localisation steel industry in major countries of the
of iron and steel industry is a result of world is as follows (Figure 10.1).
combination of above mentioned factors
along with the theory of ‘minimum
transportation cost’.

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China steel production. In this region Taiyuan

• Until the adoption of her five-year plan in has been developed as a major steel
1953, China had only insignificant iron and centre.
steel manufacturing of modern type. (iii) The Lower Yangtze Valley: In this region
Gradually, China has developed the iron and Hankow, Shanghai, Hanyang and
steel industry and now it is the highest Chungking are the main centres of iron
producer of iron and steel in the world. and steel industry.
GUIDANCE
Since 1973, growth of steel production in IAScentres are located at Paotow,
(iv)Other
China was spectacular and within a spanMOREofTHAN A COACH ING.....
Chinling Chen, Canton, Singtao and
15 years China was able to increase its Huangsih.
production of crude steel to 217 per cent. In
that period consumption increased 300 per
cent. This growth rate clearly reveals the Japan
rapid pace of industrialisation, that is now • In spite of the shortage of raw material (iron
going on in China. and coal), Japan has become one of the
• The iron and steel industry is concentrated leading steel producers of the world. After
in Anshan, Wuhan and Paotow triangle. The China, Japan is the second largest producer
biggest iron and steel factory was of pig iron and crude steel in the world.
established in the Chinese mainland at • Over half of the Japan’s steel capacity is
Anshan in Manchuria by Japanese, but was concentrated near the major port cities of
greatly expanded by the Chinese with Himeji, Kobe-Osaka and Tokyo-Yokohama
Russian help. Other iron and steel areas of South Central Honshu. Almost all
production centres in Manchuria are the iron and steel plants of Japan are
Fushun, Penki, Shenyang, Harphin and Kirin. situated near tidewater. These steel plants,
• At present, China is having following at or near tidewater, are thus able to draw
important areas of iron-steel industry: raw materials from many parts of the world
and similarly to ship finished products.
(i) Southern Manchuria is the largest steel
plant of China at Anshan and another • In Japan, large-scale concentration of iron
plants at Pensihu and Mukden. and steel industry has occurred in the
following regions:
(ii) Shansi is also an old region of iron and

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1. The Tokyo-Yokohama Region: It is having all undergone through several changes. This
facilities required for the growth of iron- change has not only occurred in growth and
steel industry. The reclamation of Tokyo Bay production pattern but also in localisation
provided large, extensive plane land for pattern. The major iron and steel regions in
steel manufacturing units. The Tokyo-China the USA are as follows:
region is the main area in which steel (i) Appalachian or Pittsburgh Region: The most
industrial units have been developed at important of all the and contains about 42.5
Hitachi and North Tokyo. per cent of the blast furnace capacity of the
2. Nagoya Region: It contributes about 20 per country and its centre, Pittsburgh, is the
cent of the Japanese steel production. This second greatest centre of steel industry in
region had witnessed a massive growth of the world. The mills in this region are
industries within the period 1950-60. located almost exclusively in the narrow
3. Osaka-Kobe Region: At the head of the valleys of the headwater streams of the Ohio
Osaka Bay, a highly industrialised area know river, including the upper reaches of the
as the Kinki has developed. The port of Ohio itself.
Osaka is the main centre. Other centres of • The region, often known as the Pittsburg-
this region are Amagaski, Kobe, Hemegi, Youngstown region, includes several
Sakai and Wakayama. districts. The Pittsburgh district consists of
4. Fukuoka-Yamaguchi Region: It is located in industries located in the valleys of the Ohio,
the extreme south of Japan within Kyushu Monongahela, and Allegheny, within 60 km
and westernmost end of Honshu. The first of Pitts-burgh. The chief disadvantage of the
government steel plant was established at region is its remoteness from the sources
Yawata in 1901. Kita-Kyushu is another of iron ore supplies, which come from the
notable iron and steel centre of this region. Lake Superior region partly by rail and partly
by water.
5. Oka-Yamaha Region: It is a new industrial
region situated in between Osaka-Kobe and (ii) Lake Region: The lake region falls into:
Hiroshima. (a) the Lake Erie ports; Detroit, Cleveland and
6. GUIDANCE
Hokkaido Region: The main centre of this IAS
Buffalo, etc.;the centres near the head of
MOiron
region is Murroran. A fairly big sized Lake
RE THAN A COACHINMichigan,
G..... Chicago-Gary or Calument
and steel industry has developed here district; and
depending upon local coal and iron ore. (b) the Lake Superior region, Duluth. These
• The most striking feature in the locational districts represent a somewhat different
pattern of Japan’s steel plants is that they adjustment to the three factors in the
are situated either on the Bay-Coast or on localisation of the industry, coal, iron and
some canal or river. This is because of the market. The Lake Erie ports are nearer to
fact that most of the Japanese steel plants the Appalachian coal, but farther from the
depend upon outside raw material. Another iron ore than the Duluth region. The
feature is that they are located in the heart Michigan region is midway between the
of great industrial districts which provide two. One important advantage that all these
ready market for finished steel. In fact, districts enjoy over the Pittsburg region is
localisation of iron and steel industry in that, owing to their location on the lake
Japan is market-oriented. shores, one extra handling of iron ore is
eliminated. On the other hand, these
centres are located a little away from the
United States of America market. Duluth, for example, has in its
• Once USA was the highest producer of iron immediate hinterland the forest, farm, and
and steel but now its rank is third in the the ranching country, with little demand for
world, next to China and Japan. In the US iron and steel goods.
first iron and steel plant was estab-lished • Detroit is the largest steel consuming centre
in 1629 at Massachusetts. During last 380 in the U SA particularly because of its
years or so the US steel industry has automobile industry.

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(iii) Atlantic Seaboard Region: On the Atlantic world. Russia ranks 4th in the production of
Seaboard, it is only the Middle Atlantic pig iron and crude steel, while Ukraine
region (New York, Philadelphia and stands 8th in world ranking.
Baltimore, etc.) that is important. The chief • In the post-revolution period, the Soviet
advantage that this region enjoys is in steel industry had achieved a remarkable
respect of its location, both in relation to expansion. During the Second Word War,
the tidewater, and the proximity to the large however, the Soviet iron and steel industry
industrial centres of the East. Its location was affected badly. Most of the large
near the centre of the great manufacturing production centres were either destroyed
region of the Atlantic Seaboard, the region or damaged. However, soon the country
of the densest population, and of the most recovered and by 1975 became the largest
intense industrial development in North producer of iron and steel in the world. The
America, is the most remarkable. four important iron- and steel-producing
• The Middle Atlantic region is the only major regions are:
region in which the production of pig iron (i) Ural Region: It lies on both sides of the Urals.
and steel is notably greater, in proportion, The major steel centres of this region are -
than the iron ore consumed, because of the Magnitogorsk, Chelyabink, Nizhnitagil,
relatively larger amounts of scrap available Sverdlovsk, Serov, Perm, Orsk, etc.
in this highly industrialised region. There Magnitogorsk is the largest steel-producing
are many steel mills in this region which centre of Russia.
operate without blast furnaces, depending
(ii) Kuznetsk or Kuzbas Region: It is located in
both on scrap and pig iron imported from
the north of the Alai mountains and south
other areas, particularly the Northern
of Tomsk. This steel region is coal-based.
Appalachian region.
The supply of iron ore is from the Ural region.
(iv) South Appalachian: In the Southern Novokuznetsk is the leading steel centre of
Appalachians, in Alabama, however, large this region.
deposits of these raw materials are found
(iii) Moscow Region: Important centres of iron
in closer proximity than anywhere else in
North America if not the world. GUIDANCE
While the
and IAS
steel in this region are Tula, Lipetsk,
MORE THAN A COCherepovetsk
ACH ING..... and Gorky.
ore is of low grade and requires shaft
mining, much of the rock is lime and the ore (iv) Others: Other regions are isolated and
is, therefore, self-fluxing. The region lacks, developed in various parts. These are Baikal,
however, large industrial centres in the St. Petersburg, Lower Amer valley and
neighbourhood and has, therefore, a Pacific coastal region.
considerable amount of surplus pig iron
which goes to the North. Ukraine
(v) Western Region: This region extends from • Now, Ukraine is an independent country and
Colorado in the interior to the California on has 8th position in world’s production of
the west. Among the steel region in the iron and steel. In this region all the raw
USA, this is a new region. The first steel mill, materials, i.e., iron ore, coal, limestone,
although had been setup in 1882 at Pueblo. manganese are available for steel
Later on steel industries were developed production. A dense network of railways
at Fontana in California and Provo at Utah. and cheap water transport facilitate the
For these plants, iron ore is obtained from growth and development of iron and steel
Wyoming and coal from Colorado. industry. The main centres of iron and steel
plants are Krivoirog, Kerch, Zhdanow,
Russia-Ukraine (erstwhile USSR) Tagarerog, Zaporozhye, Pittsburgh,
Dniepropetrovsk, etc.
• Prior to disintegration in 1991, USSR was the
leading steel-producing country of the
world. Now also Russia and Ukraine are Germany
important iron and steel producers of the • Before World War I, Germany was the

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second largest iron and steel producer in plant - the Tata Iron and Steel Company Ltd.
the world. It was the largest exporter of (TISCO) was set up in Jamshedpur in Bihar
steel goods in the world. German iron and in private collaboration with a US firm.
steel industry was handicapped since after • At the commencement of Five-Year Plans
the war of 1914 by the loss of ore, coal and (1951) there were three steel plants located
productive capacity. Germany, however, at Jamshedpur, Asansol and Bhadravati. Not
made a remarkable recovery within a few only capacity of these plants was increased
years, and in spite of her depleted resources but six integrated plants in public sector
she produced in 1939 more than the 1913 have been established at Durgapur,
production of steel. In 1937 she had Rourkela, Bhilai, Bokaro, Vishakhapatnam
established the great Hermann Goering and Salem. Apart from these more than 140
Steel Works at Salzgitter to utilise the grade mini steel plants have also been set up to
ores in its Harz Mts. meet the growing internal demand. India is
• The division of Germany was the main having the largest iron ore deposits in the
cause of lower status in terms of iron and world and also having coal, therefore,
steel production. But after re-unification of having very good prospects of the further
East and West Germany in 1990, the country growth of iron and steel industry.
is now one of the leading steel-producing
countries in the world and ranks 5th in the
France
world with an annual production of 27.3
crore tons of pig iron and 41.7 crore tons of • Till 1973, France was the 6th largest producer
crude steel. of steel in the world but now its position is
10th. France is the biggest iron ore-
• The most important centre of iron and steel
producing country of West Europe but there
industry in Germany is the Rhenish-
is scarcity of coal. In France, two regions are
Westphalia, contributing more than 80 per
notable for iron and steel production. These
cent of the steel produced in Germany, and
are: (i) Lorraine, and (ii) Sambre-Meuse
85 per cent of pig iron. The greatest centre
is Essen in the Ruhr valley where the world
GUIDANCE
famous works of Krupp are situated. IAS
Great Britain (UK)
MORE THAN A COACHING.....
• Great Britain was not only the pioneer but a
Brazil leading steel-producing country in the
world for a long time. But its decline started
• Brazil is the 7th ranking country in iron and
in the first quarter of the 20th century. Now
steel production in the world. Its annual
once again Great Britain has been able to
production is 27.7 crore tons of pig iron and
establish itself as one of the important iron-
27.8 crore tons of steel.
and steel-producing countries and ranks
• The development of the production of steel 12th in the world. The main advantage of
in Brazil has been spectacular. Since 1973, UK’s iron and steel industry is that most of
production of steel has witnessed more the centres are well-situated in relation to
than 300 per cent increase. The consumption their coal and ore supplies and also have
of steel within the country is very low. good facilities of importing raw material and
Therefore, Brazil is able to export bulk of exporting finished goods.
her steel production. Most of the steel
The most important steel-producing centres of
industries are located around Sao-Paulo and
UK are as follows:
Curumba. Brazil possesses vast amount of
iron ore. The largest of these deposit is 1. North East Coast (Middlesborough, near
located near Minas-Gerraes. Another large New Castle, is the largest producing centre,
steel plant is located at Santa Catarina. Most and has the most modern equipment in
of the mills obtain energy from hydel- Britain’s industry).
power plants. 2. Derby, Leicester, etc.
India 3. South Wales (Cardiff).
• It was in 1911 that India’s first iron and steel 4. Lincolnshire.

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5. West Coast. related with the growth of civilisation.

6. Scotland (Glasgow). Earlier, hand spinning and handlooms were
the practices for making the cotton textile.
7. Sheffield and Birmingham (the oldest, but
But the real devel-opment of cotton textile
not the most outstanding).
started in the 18th century after a series of
8. Staffordshire. British inventions in the field of ginning,
spinning and subsequent inventions of
Australia steam engine and cotton gin. All these
inventions led to a rapid growth of cotton
• Australia is very rich in coal deposits. Most textile industry in Great Britain followed by
of the steel plants are new in Australia. So, USA and Japan in the 19th century. The
the productivity is very high. The important industry has also developed in former USSR,
steel plants are New Castle and Port China, Egypt, Mexico, India, Brazil, Turkey,
Keembla. etc. The cotton textile industry is a
combination of ginning, carding, spinning,
Canada weaving and dyeing-bleaching activities.
Nowadays cotton accounts for about 50 per
• The Canadian steel industry is not very old.
cent of world’s industrial fiber consumption.
Most of the iron and steel centres were
developed around Lake Ontario, Sydney, Factors of Localisation
Nova Scotia. Canada is self-sufficient in the • The localisation of cotton textile industry
production of iron ore and coal. Most of the depends upon many geo-economic factors.
coal reserves are located within Nova Scotia The important factors are: (i) climate, (ii)
and iron ores are located around Sydney. source of power, (iii) raw material, (iv)
Apart from that, steady supply of iron ore labour, (v) transportation facilities, and (vi)
and coal from adjacent USA has enabled market.
Canada to develop a large steel industry. Climate
Some of the major steel plants are Hamilton,
Sault Ste, Ontario, Sydney, etc. • Climate exercises the most powerful
GUIDANCE IASon cotton industry. Cotton yarn
influence
cannot
MORE THAN A CO ACH be spun successfully under dry
ING.....
Africa conditions. The humidity of the atmosphere
• The largest steel producer of Africa is the must be considerable, otherwise the yarn
South Africa. In South Africa steel plants are breaks constantly during the process of
located at Transvaal and New Castle. In other spinning. The localisation of the cotton
African countries, iron and steel industry spinning industry in UK has clearly been
has not yet been developed properly. determined by climatic factors.
• It must be noted that so far as this climatic
factor (humid atmosphere) is concerned, it
Asia
has been overcome by the installation of
• In Asia, apart from China, Japan, South Korea ‘humidifiers’ in the cotton mills in dry areas.
and India, steel industry has also been Thus, places far in the interior with dry
developed to a limited extent in Turkey, climate, like Kanpur in India, in the summer
North Korea, Iran, Taiwan, Malaysia and months are able to carry on spinning
Vietnam. independent of climate. Only the process
of humidification raises slightly the cost of
2. COTTON TEXTILE INDUSTRY production.
• Cotton textile industry is the oldest among • Another climatic factor in the localisation
all manufacturing activities. The sign of of cotton industry is an abundant supply of
existence of cotton textile industry was water. Water is needed in so many
well-established in all early civilisations operations connected with the industry.
like Indus valley, Egyptian, Vedic, Roman, Water is necessary for use in the condensers
etc. In fact, the history of textile industry is of the steam engines, and in the numerous

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washing operations of the industry. The For example, New England textile centres
influence of this factor can be seen in the in USA shifted towards Piedmont because
location of cotton mills in Lancashire along of the prevailing wage rate.
streams or canals. Transport
Power • Easy means of transportation are needed
• Like any other industry cotton textile for all industries, and particularly for cotton,
industry also requires constant and cheap the product of which is cheap and for which
sources of power. Most of the industries are the market is sometimes situated
located near sources of power. Earlier cotton thousands of miles away. It is an interesting
textile industry was based on power fact that all the leading cotton mill centres -
obtained from coal, this can be seen in UK unlike iron and steel industry - cater to
where all the cotton textile industry were distant markets. Lancashire manufactures
established near coal mines. But afterwards primarily for India; and the East Japan
hydropower has also been used and now manufactures for India, China and other
all sources of power are being utilised in Asiatic markets; and the United States
this industry. manufactures mainly for the West Indies
Raw Material and the South American markets. Even in
India, the mills of Mumbai and Ahmedabad
• A historical analysis of the locational pattern
produce primarily for inland markets. The
reveals that, at its earlier period of growth,
effect of cheap transport can be easily seen
textile mills were developed near raw
in the opening of the Manchester Ship Canal.
material sources, because at that time
Easy means of communication, in importing
transportation system was ill developed.
machinery and coal by sea, getting raw
Away from the cotton-growing region,
cotton by rail, and disposing of the finished
availability of raw cotton was also very low.
product to inland and foreign markets, have
Naturally, due to higher demand, price of
also been the dominating factors in
raw cotton was high at the distant places.
localising the cotton industry in Maharashtra
But in its second phase of development,
and Gujarat.
rapid progress of transportation GUIDANCE
system IAS
facilitated easy accessi-bility within Markets
theTHAN
MORE A COACHING.....
region. At that time, price of raw cotton • Markets are a very potent factor in the
became same, both near the raw material location of the cotton industry. It has been
source and ths market. Naturally, market one of the important factors in the growth
became the favourite site for plant location. of the British cotton industry. Britain’s
The importance of raw material gradually political influence over its colonies,
lost its previous importance. particularly India, and the economic
Labour influence through investments, obtained
for its large markets, the increasing demand
• Basically, cotton textile industry was a
from which naturally gave the British cotton
labour-intensive industry. The early history
industry an impetus which was denied to
of localisation in any country shows that
others. The weakening of this influence in
development of cotton textile industry was
later years has been the cause of the
a pre-requisite. The need of clothing and
declining position of the British cotton
requirement of low level of technology
industry. The cotton textile industry that
enabled the entrepreneurs to set up the
developed in Japan and China as well as in
industry. Minimum level of training was
other countries have both inland and world-
enough for the labourers to be acquainted
wide markets.
with the production system. At that time,
wage rate of the labours was also very low. • The general trend of the location of textile
The wage rate of the labour was an industry reveals that three types of
important consideration for the location. A locations are preferred. These are:
slight hike of the wage rate made a lot of (i) the textile industry is located within the
difference between one place and another. market;

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(ii) the industry is located within raw material omnipresent market of cotton textile
sources; and industries throughout the world is, perhaps,
(iii) the textile centres have been developed responsible for the dispersed or diffused
between the above mentioned two regions. nature of cotton textile industry.
• The recent trends in the localisation indicate Production and World Distribution
that in some cases, speciali-sation in a • Cotton textile industry is quite widespread
particular product and the general quality in the world and as many as 90 countries are
of the product helped a lot to sustain producing cotton yarn and/or cloth in
development. In these cases textile varying quantity. But the main concentration
industry thrives for export market. The of textile industry is limited to few
development of Lancashire region in countries. There are two types of production
England and Tokyo-Yokohama in Japan related with cotton textile, one is the
depended heavily on foreign markets. production of cotton yarn and another is the
Similarly, most of the textile-producing production of cotton cloth. Although many
countries, are now concentrating on the countries produce both the items. The
production of quality goods rather than following table indicates the important
coarse fiber production. The import of producers of cotton yarn and their
primary products from producing countries production:
for the production of quality goods now has • Apart from the above countries Germany,
become a common feature. The automation Portugal, Greece, Uzbekistan, Syria, France,
and high wage rate of the labour forced the Bangladesh, Turkmenistan and Iran are also
countries to adopt a capital-intensive notable producers of cotton yarn.
manufacturing activity, rather than the
• The leading producers of cotton cloth in the
former labour-intensive activity. In brief,
world are China, India, Russia, USA, Japan,
the locational factors of cotton textile
Italy, Germany, Hong Kong, Egypt, France
industry are so complex that it is very
and Romania.
difficult to ascertain the reasons liable for
concentration of industries in a particular Important producers of cotton cloth in the world
region. The original factors areGUIDANCE
no more • IAS
The cotton textile industry is fairly
MORE THAN A COACHING.....
existing but the new factors are also ever widespread in the world, however, there
changing. The factors responsible for are areas of concentration. A brief
location of cotton textile industry in USA description of the important areas of cotton
may not be applicable to India. The textile industry is given here to explain the
general pattern of distribution.

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China cotton products. The Canton textile units

• Cotton textile is one of the oldest types of were set up very recently. As the plants are
industry in China. Several characteristics of modern, output of textile goods per worker
this industry help to explain this locational is very high in this region.
diversity and concentration. India
• In the first place, there is a ready market for • India is the second largest cotton textile
its product. With its vast population, China producer in the world.
has a vast domestic market for cheap cotton • The early concentration of the cotton textile
goods, and its low labour costs, based on its industry in Mumbai was governed not so
large labour supplies, enable to sell textile much by natural and permanent factors as
abroad. The first modern factory was a by other advantages, such as abundance of
textile mill in Shanghai built in 1888. Soon capital and credit facilities, the presence of
Shanghai had become a major textile centre cheap and speedy means of transport and
along with South Manchuria. Besides the the temporary growth of the demand for
advantages of local supplies of raw yarn from China, which Mumbai was in an
materials, cheap labour, and regional exceptionally favourable situation to meet.
consumer markets the cotton-growing The year 1877 marks the turning point in the
tracts of Manchuria had an additional development of the industry from the point
advantage of having the remarkable coal of view of its distribution. It saw the
mines within the state. The first mainland beginning of a rapid construction of mills in
cotton mill was located outside the coastal upcountry centres like Nagpur, Ahmedabad,
China - on the cotton-growing region of Sholapur, Kolhapur, etc., situated right in
Manchuria at Tsing Kiang. Owing to its the heart of the cotton-producing tracts.
favourable geographical situation large This later distribution was influenced to a
quantities of cotton are grown in Liao river very much larger extent by natural factors,
valley. such as the vicinity of sources of raw
• The textile industry had previ-ously been material, plentiful labour and large
concentrated in Shanghai and GUIDANCE
Tientsin. IAScentres, and was made possible
marketing
Production has improved, and new centres by
MORE THAN A CO the
ACHIN G..... development of a railway
have been opened up in the cotton-growing communication.
belt in Honan, Hopei, Shansi and Shensi, as • The cotton industry received a considerable
well as single factories serving local needs stimulus from the conditions created by war.
at Lan Chow, Urumchi, Kashgar, Chengtu, The large patronage extended to the mill
Taiyuan, Chengchow, Hongchow, Nanking, by the Government in respect of their
Kaiteng, Tientsin, etc. Cloth is now made at military requirements in cotton goods in the
Taiyuan and looms are being constructed at Eastern theatres of the war, together with
Chengchow. the shrinkage in the Lancashire imports into
• Now, China has emerged as the largest India due to the preoccupation of the
cotton textile-producing country in the Lancashire mills with war work and the sharp
world. The Beijing-Hanoi industrial rise in the prices of imported cloth due to
conurbation including centres like Paoting, shortage of shipping, led to a considerable
Shanghai, Chengchow has emerged as a increase in home consumption, though the
leading textile centre. At one stage, this difficulty of importing machinery prevented
region produced more than 70 per cent of speedy development which would
the Chinese textile production. The otherwise have taken place.
emergence of different textile centres • Recently, there has been a tendency on the
lowered the relative impor-tance of part of the Indian mills to increase the
Shanghai, but it still maintains dominating manufacture of finer goods, and a certain
role in textile industry. The adjacent Hanoi amount of long-staple cotton is imported
region now produces huge amount of textile from the USA and elsewhere for this
products. The Wushan integrated textile purpose.
plants contribute significant amount of

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• An improvement in the quality of the home- mills are scattered, though a large number
grown cotton will help the situation. It is of spindles are concentrated within thirty
significant to note that even within these miles of Providence in southern New
particular areas or regions, the industry is England. This region has developed earlier
predominantly localised within a few because of availability of hydro-power and
important industrial centres like Mumbai, suitable climate. In this region temperature
Ahmedabad, Sholapur, Vadodara, Pune, is less variable and atmosphere more
Kanpur, Delhi, Indore, Gwalior, Coimbatore, humid than in the neighbouring regions.
Kalol, Bhagalpur, Warangaf Calcutta, • The manufactures are characterised by fine
Howrah, Serampur, Konnagar, Sodepur, goods, and finishing is a feature of the New
Panihati, etc. England industry. A large quantity of cloth
Russia comes for finishing, dyeing, printing, etc.,
• Russia ranks third in cotton cloth production from the South and other cotton-
in the world and it produces about ten per manufacturing regions of the USA.
cent of the total cotton cloth of the world. (ii) Mid-Atlantic: The Middle Atlantic States
Before Revolution (1917) the cotton textile cotton factories are located in Pennsylvania,
industry was localised in Moscow and New York and Maryland. But Philadelphia is
Ivanovo region but now it has developed in the only point at which there is
other regions also. The important regions concentration. The existence of these mills
are: in Philadelphia, and the character of their
(i) Moscow-Ivanovo Region is the oldest and output is chiefly due to labour supply,
the most important textile region. Ivanovo supple-mented by machine shops and
is having a large number of cotton spinning market facilities. The Mid-Atlantic States are
and weaving centres, also known as pre-eminent in the production of knitted
‘Manchester of Russia’. goods. In both, New York and Pennsylvania,
there is localisation of the knitting industry,
(ii) Leningrad or St. Petersburg Region is also
around Cohoes in the Mohawk valley and at
known for cotton textile industry. St.
Philadelphia. Philadelphia has been the
GUIDANCE
Petersburg, Narva and Tallin are important IAS
principal seat of the hosiery industry in the
centres of this region. MORE THAN A COACHING.....
United States ever since the Germans
(iii) Kalinin Region extends west of Moscow. settled in German Town.
Kalinin, Vishniye, Volochak are important
(iii) Southern States: The growth of cotton
textile centres.
industry in the southern states has increased
(iv) Siberia Region has been developed on within recent years. The most extensive
availability of cheap hydro-electricity, construction of mills in the South has been
transport facility and labour. in three states - North Carolina, South
(v) Volga basin and Ural region also have cotton Carolina, and Georgia.
textile units. The development of textile • The Southern States have advantages such
industry in Russia is due to huge domestic as proximity of raw cotton, water-power
market, hydro-electricity, developed and cheap labour. The other advantage of
transport system and skilled labour. the South in comparison with the New
USA England states is its lower operating cost.
• USA is the leading cotton textile producer Japan
in the world. It ranks third in cotton yarn • After China and India, Japan is the third
production and fourth in cotton cloth leading Asian country in cotton textile
production in the world. The two factors production. The first cotton mill in Japan
responsible for its growth and development was established in 1862 at Kagoshima, but
are: (a) capital, and (b) the local market. In it was about 15 years later that cotton mills
USA cotton textile industry is localised in began to be started in quick succession,
the following regions: especially in and around the city of Osaka.
(i) New England: Within New England, the • The main geographical factors helping in the

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establishment of a successful cotton But Ruhr industrial region soon became a

industry in Japan are: (i) a suitable climate, leading textile centre.
(ii) cheap water-power, (iii) transport • The north-western region had the
facilities, (iv) supply of cheap and skilled advantage of local market in the industrial
labour, and (v) the proximity to the large populations which also provided it with
markets of China and India. cheap labour. The other centres had the
• The Japanese industry is said to enjoy the advantage of water power, pure water and
following advantages over her competitors: the cheap labour of the mountain
(i) Cheaper and efficient labour populations.
(ii) Greater proximity to the large consuming Hong Kong
markets • Hong Kong ranks 7th in production of cotton
(iii) Better organisation cloth in the world. The industry in Hong
Kong was set up by the refugees from
(iv) Better service from plant
communist China in 1949. Hong Kong is a
• Japan has to import almost all of the raw free trade area and one of the principal
materials needed for textile industry. The entrepot ports of the world. Manufactured
pioneer attempts to set up industries were goods, particularly textile provide three-
made around cotton-growing tracts of Nobi fourths of total export earnings. Three
and Kanto regions. Now the major textile major parts of Hong Kong’s giant textile
centres are located at Chukyo, Hanshin, industry - the spinning, weaving and
Toyama, Kyushu and Keihin and also at finishing business are in a decline from
Osaka and Nagoya. which they may never fully recover.
• Spatially, majority of the cotton mills are Employment in the industry has plummeted
located within the northern half of Japan. in the past years. Mills are shutting down or
The bulk of the textile goods are produced leaving machines idle. Local garment
in following regions: (i) the Kwanto Plain, makers are importing more and more yarn
(ii) Nagowa, (iii) the Kinki Plain, and (iv) and fabrics for their needs. The textile
along the Northern Coast. GUIDANCE IAS
industry together with the garment-making
• As the industry became more and Mmore industry
ORE THAN A COACHING.....still is the largest manufacturing
export-oriented, textile estab-lishment industry in terms of sales and employment.
gradually shifted towards coasts. At the The industry’s problem is basically one of
beginning of the decade of 1990s, old costs. Higher labour, land and energy costs
obsolete mills closed down their have made Hong Kong yarns and fabrics
productions. The new mills with updated more expensive than those from Taiwan,
machineries came into existence. Most of South Korea and China.
the Japanese textile mills are now using the The United Kingdom
latest technologies. The priority was given • The Industrial Revolution in the 18th century
to reduce the cost of production. Soon, gave the impetus to the development of
Japan became the exporter of not only cotton textile industry in Great Britain. The
textile products but also the textile subsequent invention of spinning machines
machines. At present, a healthy encouraged the growth. The humid climate
competition is discernible between small- and local skilled labour helped a lot during
scale sectors and the big industrial estates the initial period of development. The
of textile industry. cotton textile industry in the United
Germany Kingdom attained such a high fame that at
• Germany is one of the leading producers of end of 19th century the country became the
cotton textile. The history of cotton textile undis-puted leader of the cotton textile
industry in Germany is quite old. Initially, industry. The early centres were developed
the industry was set up depending upon around Scottish lowlands, Nottingham,
imported cotton and most of the industries Ireland and Lancashire. Gradually,
were developed along Rhine river valley. Lancashire became the most developed
textile centre in the world.

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• The factors that helped in early 3. CHEMICAL INDUSTRY

development of textile industry in UK, • The chemical industries are considered
especially in Lancashire region were - basic for health, industrial and agricultural
suitable humid climate, skilled local development as well as for defence.
labours, abundant water resources,
• The chemical industries are not only
availability of local coal, cheap price of land
concerned with the manufacture of pure
and cotton import facility, etc. Apart from
chemicals, but also with many kinds of
Lancashire, Manchester has also emerged
industrial raw materials that are mixtures
as a leading textile centre. The relative
of substances. The raw materials of chemical
position of UK in textile industry has been
industries are derived from various sources
decreased considerably due to overall
such as mines, forests, sea, air, land, oil, gas
decrease of consumption of cotton goods,
and brine wells. The chemicals produced
loss of overseas market and emergence of
serve as essential raw materials for making
new textile-producing countries like China,
thousands of articles - medicines,
India, Japan, etc.
fertilisers, synthetic rubber and fiber,
Other Countries plastics, explosives, etc. Chemicals are also
• In Africa, Egypt and South Africa are the used in many industries to improve or
main cotton textile producers, although preserve the quality of non-durable and
Nigeria, Ethiopia and Tanzania also produce durable goods.
some quantity of cotton fabric. • The chemical industry is comparatively a
• Egypt is famous for its good quality of cotton new addition to the manufacturing world.
and has also developed textile industry at The prosperity of chemical industry in the
Iskandaria, Tanta and Dumyat. Egypt ranks national economy is the true reflection of
10th in cotton yarn production and 8th in the simultaneous development of the
cotton cloth production in the world. industries like engineering, metallurgy and
• South Africa also has developed cotton several other manufacturing activities. The
textile industry at Johannesburg, industry produces large amount of
Bloemfontein, Durban, East GUIDANCE
London and IASproducts. The importance of
consumer
Worcester. chemical
MORE THAN A COACHING.....industry in the day-to-day life of
human beings cannot be ignored. The
• In Asia, apart from China, India and Japan,
chemical industry is one of the most
Pakistan, South Korea, Indonesia and
dynamic, as the processes are ever
Turkey are the leading producers of cotton
changing. The industry is also growing very
textile.
fast.
• Pakistan is a major cotton-producing
Chemical Products
country in Asia and has also developed
cotton textile industry. Cotton mills in • There is a large variety of chemical products
Pakistan are located at Lahore, Lyallpur, and their number is still increasing with the
Multan, Karachi, Sahadra, Montgomery and new research in this field. According to the
Peshawar. standard classification of the US Bureau of
the Budget, following chemical products
• South Korea has made good progress in
have been identified:
cotton textile industry in recent years. The
major cotton textile centres are Inchou, 1. Industrial inorganic and organic chemicals:
Taegu, Masan, Pusan, Kwangju and Seol. Alkalis and chlorine, industrial gases, coal
for crudes, dyes, dye intermediates, organic
• Indonesia is also a textile exporting country
pigments, inorganic pigments, other
of Asia. Similar is the case with the
industrial organic chemicals like acetic,
Philippines.
formic, synthetic perfume, flavouring
• Turkey is another Asian country having materials and the like. Also, chemicals such
cotton textile industry in promi-nence. as inorganic salts of sodium, potassium,
Turkey is a producer of good quality of aluminium, calcium, magnesium, etc., are
cotton. included in this category.Plastic materials

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and synthetic resins, synthetic rubber, Scientific and Technological Know-how

synthetic and other man-made fibres, • The entire chemical industry is based on
except glass. scientific and technological knowledge. The
2. Drugs: Biological products, medicinal technological advancement and attainment
chemicals and botanical products, of know-how is a prime requisite for
pharmaceutical preparations. chemical industry. Chemical industry also
3. Soap, detergents and cleaning requires updated knowledge, therefore,
preparations, perfumes, cosmetics and R&D facilities are necessary.
other toilet preparations: Soap and other Capital
detergents, except cleaners. Specially • The chemical industry is one of the most
cleaning, polishing and sanitation capital intensive of all industries and the
preparations, except soap and detergents. introduction of new products and processes
Perfumes, cosmetics and other toilet arising from advances in chemical science
preparations. has accordingly entailed high rates of
4. Paints, varnishes, lacquers, enamels and investment.
allied products. Raw Material
5. Gum and wood chemicals. • Raw materials used for the manufacture of
6. Agricultural chemicals: Fertilisers, chemicals are bulky and weight-losing. So,
agricultural pesticides; other agricultural some of the plants develop raw material
chemicals, such as soil conditioners and source in their own premises. Ex- paper and
trace elements. pulp industry.
7. Miscellaneous chemical products: Glue and • However as these products are expensive,
gelatin, explosives, printing ink, fatty acids market plays the decisive role in the
and carbon black. localisation of the plant. Several raw
• Because of diversified product structures materials are generally used in this
industries related with chemicals have also industry. They are all obtained from
been divided as: GUIDANCE IAS
different sources. It is most unlikely that all
the raw materials will be available at a single
(i) Heavy chemicals: Such as sulphuricMacid, ORE THAN A COACHING.....
place. The market or port locations are
soda ash, caustic soda, chlorine, nitric acid,
preferable, because of the availability of all
etc.
the raw materials at these places.
(ii) Petro-chemicals: Plastics, synthetic fibers,
Power Supply
fertilisers, synthetic rubber, explosive, etc.
• Abundant power supply is necessary for the
(iii) Electro-chemicals: Fertilisers, nitrate,
manufacture of chemical products.
ammonia, carbides, etc.
Formerly, coal, petroleum or hydel-power
(iv) Pharmaceuticals: Medicines and drugs. sources influenced the location but now
(v) Light chemicals: Insecticides, colours, tars, due to the adoptation of energy efficient
carbolic acid, synthetic fibers, synthetic technique, the influence of power sources
rubber, etc. have greatly been reduced.
(vi) Derived chemicals: Paints, soap, glass, paper, Availability of Land
etc. • Market and raw material sources exert pull
Factors of Localisation on the location of chemical industry.
• Although factors of localisation of chemical Availability of land is also a significant factor
industry are similar to that of other which sometimes influences the location.
industries, e.g., raw material, market, Only for the availability of extensive lands,
transport, power, water supply, capital, etc., chemical industry generally develops not in
still there are certain specific factors that the urban centres but in the suburbs.
also determine the site and location of Transportation Facilities
these industries. These are as follows: • Most of the raw materials used in chemical

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plants are bulky and weight losing. It is Germany

desirable to have a good transportation • Germany is also a leading country in
network. Waterside location is a favoured chemical industry. In Germany, the chemical
location. industry began as early as in 1886 with the
Distribution of Chemical Industry organisation and early growth of the
• Since chemical industry is based on science dyestuffs and potash industry. In Germany,
and technology, its development is more chemical industry has been developed
important in developed countries. But now, because of the certain favourable factors,
so many developing countries are also such as:
important producers of several chemicals. (i) economic stability and research facilities,
The global chemical industry is mostly (ii) availability of raw materials like salt,
controlled by few multinational companies potash, limestone, dolamite, sulphur, etc.
as they have the patent right of the
(iii) development of thermal power, and
products. The major chemical-producing
countries are USA, Germany, China, Russia, (iv) extensive market facilities.
Japan, France, India, Brazil, Italy, Poland, • The areas of chemical industry in Germany
Belgium, UK etc. are concentrated in Rhine valley and Upper
USA Saxony. The four main areas are the Ruhr
region, Frankfurt region, Northern Rhine
• The United States of America is the world’s
region and Upper Saxony region.
leading country in the production of
chemical products. It produces nearly 30 to Russia
35 per cent nitric acid, soda ash and caustic •
Chemical industry is one of the most
soda of the world and also ranks second in important industry in Russia. The early
the production of sulphuric acid. The factors
chemical-producing centres were largely
responsible for the development of concentrated around Moscow — Tula and
chemical industry m USA are: St. Petersburg. The present chemical
(i) The development of science and industry has been developed in the
technology. GUIDANCE IASregions:
following
MORE THAN A COACHING.....
(ii) High degree of industrial development. (i) Moscow region, having centres at Moscow,
Novomoskorsk, Voskresensk, Kazan, Gorky,
(iii) Availability of raw material.
Dzherzinsk and Yaroslav.
(iv) Large and expanding market.
(ii) St. Petersburg region.
(v) Capital through multinational companies.
(iii) Ural region.
• The centres of chemical industry in USA are
(iv) Siberia and Far-East region.
widely distributed. The largest
concentration of chemical industry is in the China
northern states of Pennsylvania, Ohio, • China has now emerged as a leading
Kentucky, Indiana, Tennessee, Alabama, producer of chemicals, not only in Asia but
Virginia, etc. Some industries often require also in the world. The development of
products of other chemical industries. This chemical industry in China started in the plan
interdependence or symbiotic relationship period after 1950, when concerted efforts
between the chemical plants forced most were made to develop Chinese chemical
of the industrial establishments to settle industry, specially heavy chemical industry.
within the same region. The other reasons Special care was taken to increase the
responsible for this higher concentration in production of caustic soda, soda ash,
those states are the presence of nearby sulphuric acid, hydrochloric acid and nitric
market, excellent transport facilities and acid. The effort made was so sincere that in
availability of all kinds of raw materials the last three decades production increased
within their periphery. threefold.

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Japan India
• The origin of chemical industry in Japan • India is now an important manufacturer of
began only after the First World War. But the chemical products. India produces 6 per
since then, rapid growth of this industry has cent sulphuric acid, 6.2 per cent soda ash
placed it in a high position. Although, during and 4 per cent caustic soda of the world
the Second World War, Japanese industries along with a large variety of other chemical
including the chemical industry were products. The major centres of chemical
completely devastated. But, with herculean industry in India are Mumbai, Kolkata,
efforts, Japan was able to rebuild its Sindri, Jamshedpur, Chennai, Bangalore,
chemical industry within a short period and Trombay, Vadodara, Ahmedabad, Kanpur,
surpassed its pre-war production level. Amritsar, Delhi, etc.
• Most of the Japanese chemical plants are Brazil
either newly constructed or completely • Brazil is a significant producer of chemical
rebuilt, so output and productivity is very products not only in South America but also
high. All the plants are new, modernised in the world. It produces 5 per cent sulphuric
and automated. acid, 3 per cent nitric acid and 4 per cent
• Japan is deficient in raw materials. More caustic soda to the world’s output. The main
than 80 per cent of its factories are entirely centres of chemical industry are Rio de
dependent on imported raw materials. The Janeiro, Sao Paulo, Minasgeras, Santos, etc.
only raw material abundant in Japan is • Apart from the above, Spain, Belgium,
sulphur, deposited extensively by volcanic Poland, Australia, Bulgaria, Turkey, Ukraine,
eruptions. Most of the chemical plants in Greece, Croatia, etc., are the other
Japan are located within the industrial important countries, producing chemical
agglomerations of Osaka-Kobe, Tokyo- products in the world.
Yokohoma, Nagoya, Hemagi and Kyushu.
United Kingdom
4. CHEMICAL FERTILISER INDUSTRY
• In UK chemical industry has been developed
in the following areas: GUIDANCE • TheIASgrowth, development and productivity
of agriculture
MORE THAN A COACHING..... depends upon soil fertility
(i) The Tees valley, and the fertility of soil depends upon
(ii) The Mursey valley and southern Lancashire, several factors, especially on its mineral
(iii) Tyne valley and Avon valley, components such as phosphorus,
potassium, nitrogen, calcium, magnesium,
(iv) Scotland, and
sulphur, etc. The critical problem of modern
(v) London region. agriculture is the maintenance of soil
• The leading chemical-producing centres are fertility. Each crop removes something from
Lancashire, Glasgow, Manchester, the soil. Our ancestors coped with this
Birmingham, Yorkshire, Leeds, Norwich, problem by following a ‘gap season’ with
Middlewich, etc. no crop on the land, so that it could recover
France naturally something of what it had lost. But
now under the pressure of population, land
• In France, chemical industry has developed hardly gets this rest, therefore, loss of soil
in four areas, i.e., north-eastern region, fertility and lower productivity has now
Lorraine region, Leyons-Marseilles region become a common problem.
and Bordeaux-Garonne region. The strong
industrial infrastructure, abundant coal • The production of chemical fertilisers,
reserve, developed petroleum refinery although a part of chemical industry, but
industry and presence of several raw because of their volume of production and
materials like salt, dolomite, limestone and nature, the chemical fertiliser industry now
potash facilitated the growth of chemical has become an independent and important
industry in France. industry.

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The common chemical fertilisers are: Nauru island in the Pacific Ocean.
(i) Nitrogenous fertilisers in the form of • USA, China, India, Russia, Belgium, Brazil,
ammonium sulphate, urea, nitro-limestone Tunisia, Poland, South Africa, Morocco, etc.,
and ammonium nitrate. are the major producers of phosphate
(ii) Phosphatic fertilisers in the form of super- fertilisers in the world.
phosphate like nitro-phosphate and Potash Fertilisers
ammonium phosphate, and • A large quantity of potassium is derived
(iii) Potassium fertilisers in the form of from deposits of potash salts. The largest
potassium. deposits of potash are found in Germany,
Nitrogen Fertilisers Belarus, Russia, France, Spain, USA and
Israel-Trans Jordan. Playa deposits in desert
• The primary deficiency of nitrogen in all
areas and the brines of some salt lakes are
temperate and tropical countries demands
also rich in potassium. Acid areas usually
top priority for the manufacture of nitrogen
need potassium fertilisers more than
fertilisers. Following are the important
neutral and alkaline soils because acid soils
nitrogen fertilisers in common use in various
have developed in areas of high rainfall that
countries of the world:
leaches fertilisers out of available
(i) Ammonium sulphate: 20.6 per cent N potassium. Japan uses potassium fertilisers
(ii) Ammonium sulphate nitrate: 26 per cent N on a large scale for rice production.
(iii) Calcium ammonium nitrate: 20.5 per cent N • Major producers of potash ferti-lisers are
(iv) Urea: 45 per cent N Belarus, Canada, Russia, China and Germany.
Apart from the countries mentioned in the
(v) Ammonium chloride: 25 per cent N table, Brazil, Poland, Republic of Korea also
• Nitrogen fertilisers are the most widely produce potash fertilisers.
produced and most commonly used. Chemical Fertiliser Industry in India
• China is the largest producer of nitrogen • One of the important factors in the success
fertiliser and contributes 24 per cent of the
world’s production. India is GUIDANCE IAS
of ‘Green Revolution’ in India is the use of
the second chemical fertilisers. The crop yield per
largest producer with 11 per cent of MOthe
RE THAN A COACHING.....
hectare in India was too low previ-ously. But
world’s production followed by USA (8.4%), with the increasing demand and food deficit,
Ukraine (6.4%) and Russia (5.8%). Apart from the country has given special attention to
the countries mentioned in Table 11.5, the production of chemical fertilisers.
Netherlands, UK, Germany, France, Spain,
Turkey, Iran, Brazil, South Africa and • As a result, there has been a rapid growth
Uzbekistan are the other producers of of chemical fertiliser industry in India during
nitrogen fertilisers. last five decades and now India is the third
largest producer of nitrogenous fertilisers
Phosphate Fertilisers in the world. India’s average annual
• Phosphate fertilisers, generally known as production of nitrog-enous fertiliser is 12
phosphorus have often been called the million tons and phosphatic fertiliser is 4.5
master key to agriculture, as low crop million tons.
production more often is due to a lack of • The Government of India has established a
phosphorus. Phosphorus fertilisers are number of industries of national
classified into three types, e.g., water- importance. The fertiliser industry is one of
soluble phosphorous, citrate-soluble them. The Fertiliser Corporation of India is
phosphorus, and insoluble phosphorus. a public sector company, which is the most
• The fossil remains of animal life in the form important fertiliser producer company of
of phosphate rock are the largest source of India. In India, about 60 factories are
phosphorus today. Most of the rock actually producing chemical fertilisers in
phosphate reserves of the world are different parts of the country along with
concentrated in North Africa, USA and about 70 medium and small-scale units.
Russia, as well as in Peru, Egypt, Spain and

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• As a part of agricultural development the species of spruce, fir, and pine for
programme, a large-scale factory of ‘mechanical’ pulps; and aspen, polar and
Fertiliser Corporation of India, has been other deciduous trees for ‘chemical’ pulp.
started at Sindri (Bihar). The factory • Mechanical pulps are made by grinding the
produces mostly ammonium sulphate and wood and are used for inferior kinds of
to a lesser extent urea and ammonium paper. Chemical pulps are made by
nitrate. It has a daily capacity of 1000 tons. dissolving wood into pulp through chemical
Other important factories of the solutions. These are generally used for
Corporation are located at Nangal (Punjab), better quality paper. At present, wood pulp
Gorakhpur (Uttar Pradesh), Trombay is largely used in the production of
(Maharashtra) and Namrup (Assam). In 1966, newsprint only, in the manufacture of which
the Gujarat State Fertilizers & Chemicals Ltd. two kinds of pulps are mixed together in
had set up its factory with seven giant plants proportion of 70 mechanical and 30
near Baroda. Indian Farmers Fertilizer chemical. The use of wood pulp for paper
Cooperative Limited (IFFCO) has set up a big of other kinds also is, however, growing fast,
factory at Kandla port. The other major owing to the improvements being made in
centres of chemical fertiliser industry in pulp making.
India are Neyveli (Ennore), Alwaye,
Factors of Localisation
Mangalore, Coimbatore, Paradeep, Korba,
Kampti, Guna, Kota, Bhatinda, Barauni, • The location of pulp and paper industry is
Durgapur, etc. A large number of modern of immense importance because of some
fertiliser plants have been set up using specific requirements for this industry.
diverse feedstocks and technology to Production of paper, nowadays is done
manufacture a wide range of fertilisers like through several integrated processes,
superphosphate, urea, ammonia sulphate, where modern technologies are involved.
and various grades of complex fertilisers. Generally, two types of paper and pulp mills
are seen in the world, i.e.,
(i) raw material-based, and (ii) market-based.
5. PULP AND PAPER INDUSTRY
GUIDANCE • IAS
In some countries, mills produce only paper
• All types of writing work is done on M paper,
ORE THAN A COACH ING.....
while in other countries they produce wood
thus, paper is considered as a base of
pulp as well as paper. The pulp is mostly used
modern civilisation. There are evidences
by paper industries. Therefore, for obvious
that paper was first made in China in 105 AD
reasons, pulp and paper industries are
. The use of wood pulp with rags for making
always concentrated near raw material
paper began in Germany in 1840 and in USA
source. The mills engaged in the production
in 1880. Thereafter, throughout the 20th
of only paper generally show affinity
century, most of the world’s paper has been
towards the market. The composite mills
made from wood pulp and this process is
which cover all the manufacturing processes
still going on. In fact, paper is a forest-based
are generally located near the raw material
industry. Both pulp and paper industry are
source. The general tendency of the
complementary to each other. Paper is
present-day paper mills is to be near the
usually manufactured from wood fibres. The
market. The transhipment cost of paper is
rounded wood and processed wood is
not very high. Therefore, to be acquainted
converted into wood pulp, which is
with the changing mood of customers, paper
considered as a principal raw material of
industries locate within the periphery of
paper industry.
consumer centres. In the case of the paper
• The importance of wood pulp is fast manufacturing units, using waste paper and
growing. The main uses to which wood pulp cardboards, are located near the market,
is at present put to are the manufacture of because market is the major supplier of the
paper and cellulose which is then used for raw materials.
the manufacture of artificial silk. The chief
• The locational factors of the pulp and paper
woods used for the manufacture of pulp are
industry may be summarised as follows:

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Raw Material floated reach the sea, and where paper or

• Wood is the primary raw material for this pulp can be loaded on ships for export. Most
industry. Pulp mills must be located near of the mills in Sweden are positioned in this
the forests because this minimises the way. In Britain, most of the paper industry
difficulty of transporting the bulk logs as is largely dependent on imported pulp,
well as cost also. A river-side site is ideal therefore, paper mills are having a coastal
because logs can be floated directly to the position.
mill. The forest in the area must be Capital
extensive and capable of supplying large • Paper industry is a capital-intensive
quantities of suitable timber. In paper industry, therefore, large capital is required
industry soft woods like Spruce, Cedar, for sophisticated machinery and other
Hemlock, Deodar, Eucalyptus, etc., are used. works. The larger the mill the greater are
Several pulp manufacturing units are the initial costs. The large paper mills are
located near the forest to get abundant also associated with the printing and
supply of wood. publishing business and often own their
Water own forests.
• Paper industry requires a large quantity of Labour
water. To make 1 ton of newsprint, about • Nowadays paper mills are highly
100 tons of water is needed, and since, it is mechanised, thus, require lesser
essential to maintain a copious production, manpower. They can be located in remote
vast quantities of clear chemical free, fresh regions having labour shortage.
water must be available. These conditions
Production and Distribution
are usually available in thinly populated,
forested areas rather than in major • The production of wood pulp is an important
industrial complexes. industry in many countries of the world.
Power • Canada is the highest wood pulp producer
in the world and produces 32.2 per cent of
• A ton of newsprint may require about 2,000
GUIDANCE
kilowatt hours of electricity and thus, vast
the IAS
world production. USA is the second
largest
MORE THAN A CO producer followed by Finland and
ACHING.....
power sources are essential. Paper plants
Sweden. The other major producers of
show an affinity towards cheap hydel-power
wood pulp in the world are Japan, Norway,
sources. Canadian rivers have been tapped
Germany, Russia, France and New Zealand.
to provide power to the pulp mills. Similarly,
the use of power supplied from rivers in • Paper is produced in many countries of the
southern USA, has led to the establishment world but its major producers are Canada,
of some of the largest pulp mills in the world USA, Russia, Germany, Norway, Sweden, UK,
in the southern states. In the absence of Japan, China, India, etc. There are several
hydel-power, these mills grow near power varieties of paper produced in the world,
plants. among them newsprint paper is very
important because of its large quantity of
Transport
consumption throughout the world.
• Transport is one of the most important
Canada
determinants of paper plant location. The
transport cost of newsprint and paper is • Canada is the largest producer of wood pulp,
slightly higher than the transport cost of its newsprint paper and other types of paper
raw material. But, on the other hand, raw in the world. This has been possible due to
material reduces its weight consid-erably its vast resources of coniferous forest,
during the processing. Whatever may be the which provide raw material for paper
cause, for steady supply of raw material, a industry. In recent years, apart from
good network of transport and newsprint, Canada also expanded
communication is a prime requisite. production of paper and paper board. In the
last 15 years, production of paper in Canada
• Paper mills are usually situated near the
has had about 24 per cent of increase, which
coast, where the rivers on which the log are

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is a spectacular achievement. The Great Lakes Region

• In Canada, major paper mills are located in • This is also a main region of paper industry.
three regions, i.e., Quebec, Ontario and The advantage of inland water
British Columbia. The favourable factors trans-portation facility is an additional
responsible for the growth of paper industry advantage of this region.
are: availability of raw material from The Western Region
coniferous forest, cheap and available
• The north-western states like Washington,
hydel-power, transportation facilities
Oregon, Idaho, Montana and North Dakota
specially water transport through rivers and
contain a large number of mills. The greater
lakes and extensive market. In newsprint
concentration of paper and pulp mills occur
production, Canada is supreme and most of
in the states situated along the Pacific Coast.
the newsprint production is exported to
The narrow coastal belt running through
other countries like USA, UK, Germany,
Washington, Oregon and Northern
India, etc.
California now contributes substantial
USA amount of paper.
• The United States of America is a leading The Southern Districts
country in paper industry. There are several
• Of late, southern paper mills contribute
geo-economic factors that favoured the
larger share in the production of paper in
growth and development of the paper
United States. This region has developed
industry in this country. These factors are:
rapidly, because of imported soft wood
(i) Soft wood forest resources are available as from Canada and modern productive paper
raw material; manufacturing process. The states engaged
(ii) Availability of hydel-power resources; in paper production in this region are North
(iii) Good transportation facilities, especially and South Carolina, Georgia, Florida,
inland waterways of great l a k e s , Alabama, Mississippi, Arkansas and Texas.
which facilitates easy transportation of logs Sweden
and import of special soft wood
Canada;
GUIDANCEfrom •
IAS
Sweden is the major paper and wood pulp-
producing country in the world. In the last
MORE THAN A COACHING.....
(iv) Abundant water resources; two decades, Sweden’s paper industry has
(v) Industrial and economic development of developed more than 35 per cent. Sweden
high level enabled her to build up necessary is having a forest cover of more than 28
infrastructure for the industry; million hectares which is the biggest source
of raw material. The cheap availability of
(vi) Domestic demand and worldwide market;
hydroelectricity and large European
and
markets are the other causes of its
(vii) Capital availability, etc. development. Sweden is also an important
• The four important regions of paper exporter of paper, not only to Europe but to
industry in the US are as under: other parts of the world.
Finland
The North-Eastern Forest Region • Finland is also one of the largest paper-
• This was the first centre in United States producing countries of the world. The major
where paper and pulp industry developed. reason behind the phenomenal growth of
At its early period of growth, the region Finland’s paper industry is the vast amount
supplied substantial amount of paper to the of forest resource within the country. Forest
country. The major paper and pulp constitutes about 76.26 per cent of the total
manufacturing units were located around area. Most of the tree species are of
New England states. Several factors were valuable, soft conifers. Apart from raw
favourable at that time for abundant growth materials, Hydel-power is also available at
of paper industry in that region. a much cheaper rate. Due to low
consumption of paper in the home market,

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Finland exports bulk of her paper products. handmade paper in the world. The modern
Japan paper industry was started only after the
coming of communist regime, but soon
• Japan is third in paper production and fourth
China became a leading producer of paper
in wood pulp production in the world. The
in Asia and also ranks 10th in production of
major factors favourable for the rapid
newsprint in the world. The main centres
growth of Japanese paper industry are:
of paper industry in China are located at
(i) Vast forest resources of the country, fapan Canton, Tientsin, Jidong, Hankow, Tianjin,
is having 25 million hectares of forest area. Ningguo and Kyamuje.
(ii) The cheap hydel-power harnessed from India
short turbulent mountain rivers.
• In India, paper industry is developing at a
(iii) Entrepreneurship ability of the fast rate. From a production of about 1 lakh
industrialists and patriotic zeal of the ton in 1950, now its production is more than
average Japanese worker. 40 lakh tons. In the earlier stage, paper
(iv) Vast market at home and abroad. industry was predominantly localised in the
(v) Low production cost, due to the adoptation Hooghly basin of West Bengal. In the later
of sophisticated technology and low wage stage there has been growth of paper mills
rate of the workers. in many other pa:rts of the country, but West
Bengal still leads. Other states having paper
• The leading centres of paper production are mills are Bihar, Odisha, Maharashtra,
Kwanto plain which includes Tokyo, Gujarat, Madhya Pradesh, Uttar Pradesh,
Kawasaki and Yokohama, Ise Bay including Andhra Pradesh, Karnataka, Kerala,
Nagowa and Kitakyushu region. Himachal Pradesh and Assam. The
Russia Hindustan Paper Corporation Ltd. is a public
• Russia produces about 12 lakh metric tons sector undertaking and has three mills, one
of paper annually and is also important in located in Nagaland and two in Assam.
wood pulp production. Most of the paper National Newsprint and Paper Mills was
established in 1965 at Nepanagar (NEPA Ltd.)
GUIDANCE
industry of Russia is concentrated at
Leningrad, Ivanovo, Oblast, UralMOand
IASPradesh. Recent trend in Indian
of Madhya
RE THAN A COACHING.....
Moscow. Several factors helped in the paper industry is the production of Indian
growth of paper industry. The most board. Now India is producing several types
important one is the largest forest cover of paper and also imports paper for specific
spread over in central and eastern part of purposes to fulfil the growing demand.
the country. The cheap supply of electricity • In addition to the above, the other paper-
and widespread market are the other producing countries in the world are
causes. Norway, France, Italy, Brazil, Republic of
China Korea, Argentina, Netherlands, Indonesia,
Thailand, Poland, Spain, Mexico, Australia,
• China is considered to be the pioneer of
etc.

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10. Patterns of world trade goods up the west coast of Arabia, linking
India with Egypt, Phoenicia and
Mesopotamia.
PATTERN OF WORLD TRADE A trade route from China: 2nd century
• Trade is the exchange of goods and services BC(Development of Silk Route)
between countries. • A tentative trade route is becoming
• Goods bought into a country are called established along a string of oases north of
imports, and those sold to another country the Himalayas. They are very exposed to
are called exports. the broad expanse of steppes - from which
• Trade pattern reveals degree, direction and marauding bands of nomadic tribemen are
basket of of goods and services among trade liable to descend at any moment - but
partners. protection by the Han Dynasty in China is
now making it reasonably safe for
merchants to send caravans into this region.
History of Trade The goods are usually unloaded in each
• Trade has been the part of human oasis and traded or bartered before
civilisation ever since the beginning of continuing the journey westwards - where
primitive economy. As the people rich customers around the Mediterranean
interacted, newer means of transport and are eager for the luxury products of the east.
new routes were discovered and • In the 1st century BC the Romans gain control
colonialism grew trade expanded. For of Syria and Palestine - the natural terminus
categorical purposes it can be divided into of the Silk Road, for goods can move west
three periods- a) Pre-Industrialisation , b) more easily from here by sea. Soon a special
Industrialisation period & c) Post- silk market is established in Rome.
Industrialisation period.
World trade: from the 1st century AD
Pre-Industrialisation Period
• The Silk Road links east Asia and western
Waterborne traffic: 3000-1000 BC Europe at a time when each has, in its own
• By far the easiest method ofGUIDANCE
transporting IAS
region, a more sophisticated commercial
MORE
goods is by water, particularly in an era whenTHAN A COACH ING.....
network than ever before.
towns and villages are linked by footpaths • The caravan routes of the Middle East and
rather than roads. The first extensive trade the shipping lanes of the Mediterranean
routes are up and down the great rivers have provided the world’s oldest trading
which become the backbones of early system, ferrying goods to and fro between
civilizations - the Nile, the Tigris and civilizations from India to Phoenicia. Now
Euphrates, the Indus and the Yellow River. the Roman dominance of the entire
Ivory,linen, gold, timber and glass products Mediterranean, and of Europe as far north
were the main goods that were traded. as Britain, gives the merchants vast new
The caravan: from 1000 BC scope to the west. At the same time a
• In the parched regions of north Africa and maritime link, of enormous commercial
Asia two different species of camel become potential, opens up between India and
the most important beasts of burden - the China.
single-humped Arabian camel (in north • The map of the world offers no route so
Africa, the Middle East, India) and the promising to a merchant vessel as the
double-humped Bactrian camel (central coastal journey from India to China. Down
Asia, Mongolia). Both are well adapted to through the Straits of Malacca and then up
desert conditions. They can derive water, through the South China Sea, there are at
when none is available elsewhere, from the all times inhabited coasts not far off to
fat stored in their humps. either side. It is no accident that Calcutta is
• It is probable that they are first now at one end of the journey, Hong Kong
domesticated in Arabia. By about 1000 BC at the other, and Singapore in the middle.
caravans of camels are bringing precious

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• Indian merchants are trading along this of a number of agreements embodying the
route by the 1st century AD, bringing with new liberal ideas about trade, among them
them the two religions, Hinduism and the Anglo-French Treaty of 1786, which
Buddhism, which profoundly influence this ended what had been an economic war
entire region. between the two countries.
Rise of Mercantilism • After Adam Smith, the basic tenets of
• Mercantilist analysis, which reached the mercantilism were no longer considered
peak of its influence upon European thought defensible. This did not, however, mean
in the 16th and 17th centuries, focused that nations abandoned all mercantilist
directly upon the welfare of the nation. It policies. Restrictive economic policies were
insisted that the acquisition of wealth, now justified by the claim that, up to a
particularly wealth in the form of gold, was certain point, the government should keep
of paramount importance for national foreign merchandise off the domestic
policy. market in order to shelter national
production from outside competition. To
• The trade policy dictated by mercantilist
this end, customs levies were introduced
philosophy was accordingly simple:
in increasing number, replacing outright
encourage exports, discourage imports, and
bans on imports, which became less and
take the proceeds of the resulting export
less frequent.
surplus in gold. Mercantilists’ ideas often
were intellectually shallow, and indeed • In the middle of the 19th century, a
their trade policy may have been little more protective customs policy effectively
than a rationalization of the interests of a sheltered many national economies from
rising merchant class that wanted wider outside competition. The French tariff of
markets—hence the emphasis on 1860, for example, charged extremely high
expanding exports—coupled with rates on British products: 60 percent on pig
protection against competition in the form iron; 40 to 50 percent on machinery; and 600
of imported goods. to 800 percent on woolen blankets.
Transport costs between the two countries
• A typical illustration of the GUIDANCE
mercantilist IASfurther protection.
provided
spirit is the English Navigation Act ofM1651
ORE THAN A COACHING.....
(see Navigation Acts), which reserved for the • A triumph for liberal ideas was the Anglo-
home country the right to trade with its French trade agreement of 1860, which
colonies and prohibited the import of goods provided that French protective duties were
of non-European origin unless transported to be reduced to a maximum of 25 percent
in ships flying the English flag. This law within five years, with free entry of all
lingered until 1849. A similar policy was French products except wines into Britain.
followed in France. This agreement was followed by other
European trade pacts.
Industrialisation period
Post-Industrialisation period
• A strong reaction against mercantilist
attitudes began to take shape toward the • The late twentieth century marked a
middle of the 18th century. In France, the watershed in the world economy. First,
economists known as Physiocrats industrialized countries experienced a
demanded liberty of production and trade. slowdown in their economic growth rates,
In England, economist Adam Smith in part due to the petroshocks of the 1970s
demonstrated in his book The Wealth of and the ensuing deindustrialization.
Nations (1776) the advantages of removing Increases in oil prices reduced real income
trade restrictions. Economists and in the advanced countries and dealt a
businessmen voiced their opposition to particularly harsh blow to the oil-importing
excessively high and often prohibitive Third World countries. These oil shocks left
customs duties and urged the negotiation a permanent imprint on the structure of
of trade agreements with foreign powers. global finance,trade, and investment.
This change in attitudes led to the signing

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• Second, competitive rivalry among participate in international trade. The

industrialized countries increased theory of comparative advantage, an
significantly as they developed their extension of Adam Smith absolute
productive capacities in different sectors advantage theory states that in a two good
and sought foreign revenues via exports. world; a country should specialize in
• Third, global financial markets underwent producing and exporting goods in which it
a profound series of alterations. In 1973, the is relatively more efficient and import goods
old Bretton-Woods monetary arrangement, in which it is less efficient in producing .
which involved fixed monetary exchange However, this theory does not give any
rates and the convertibility of the U.S. dollar explanations to what causes the relative
into gold, collapsed and was replaced by a advantage differences.
system of fluctuating exchange rates, in • The Heckscher-Ohlin theory (H-O) takes
which supply and demand dictated relative Ricardo theory one step further by analysing
values of currencies.This change had serious the effects of factors of production or factor
effects on the relative prices of imports and endowments and is able to provide an
exports worldwide. A global electronic explanation for the differences in
network allowed vast sums of money to be advantages for trading countries . The H-O
traded internationally, creating an almost theorem states that a country should
seamless financial market around the produce and exports goods that require
planet. The World Trade Organization factors that are relatively abundant and
became a permanent body for the import goods in which the factors of
regulation of barriers to trade. production are relatively scarce. H-O theory
• The fourth structural change was massive focuses on the endowment and cost of
geopolitical realignments. Japan and other factors of production good whereby Ricardo
East Asian newly industrialized countries is based on efficiency.
(NICs) enjoyed rapid industrial growth. • Both of the above theories have been
China grew rapidly to become the world’s shown to be deficient in explaining more
second-largest economy. The Soviet bloc recent patterns of international trade. For
collapsed, sending waves GUIDANCEof turmoil IASthe 1960s witnessed significant
example,
MORE THAN A COACHING.....
throughout central Asia and Eastern Europe. technological progress and the rise of the
And Europe pursued a relentless strategy multinational enterprise, which resulted in
of economic unity through the European a call for new theories of international trade
Union, a path followed to some extent in to reflect changing commercial realities .
North America under the North American Leontief tested the validity of the H-O
Free Trade Agreement. theory as he found that the US was more
capital in abundance but yet its exports of
capital intensive goods were less than the
Trade Theories
imports however his paradox vanished as it
• International trade theory can be was unable to empirically verify this
categorised into two perspectives; statement.
traditional i.e. theory belonging to the neo-
• At that time, the product life cycle theory
classical world based on homogeneous
of international trade was found to be a
goods and perfectly competitive markets,
useful framework for explaining and
and New Trade Theory based on the
predicting international trade patterns as
assumptions of differentiated goods and
well as multinational enterprise expansion.
monopolistically competitive markets
This theory suggested that a trade cycle
(Brulhart & Trionfetti).
emerges where a product is produced by a
• Traditional trade theory concentrated mainly parent firm, then by its foreign subsidiaries
on the structural differences between and finally anywhere in the world where
countries. It has been dominated by Ricardo costs are at their lowest possible .
theory of comparative advantage which Furthermore, it explains how a product may
claims that countries are better off if they emerge as a country export and work

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through the life cycle to ultimately become consumption needs.

an import. The essence of the international 4) Global Geopolitics: Globalisation, Vision of
product life cycle is that technological multipolar world after cold war era, rise of
innovation and market expansion are critical India and China in Rim land, Trade Bloc
issues in explaining patterns of politics, Migration crisis giving rise to trade
international trade. That is, technology is a protectionism etc.
key factor in creating and developing new
5) Environmental factors: Raising
products, while market size and structure
environmental concerns leading to carbon
are influential in determining the extent
tax, offset clause etc. are shifting industries
and type of international trade.
from developed nations to less developed
• While these theories are insightful a number parts of the world. Growing impetus on
of modern international trade theories have renewable energy affecting oil trade.
emerged recently which take account of
6) Stage of Development: Many theories
other important considerations such as
suggest that production and consumption
government involvement and regulation.
pattern changes as the country progresses.
However, it remains that these theories
For ex- In Rostov model transition from
make several assumptions which detract
primitive economy to Society of mass
from their potential significance and
consumption changing technologies, and
contribution to international business. For
demand pattern for consumption and
instance, they assume that: factors of
building infrastructure.
production are immobile between
countries; perfect information for According to stages of development
international trade opportunities exists; planning is done and programmes are
and, traditional importing and exporting are prioritized by the government.
the only mechanisms for transferring goods Ex- Initiatives like Make In India, Skill India
and services across national boundaries . have direct influence over India’s trade
pattern.

GUIDANCE
Geographical factors determining trade pattern IAS
• Geography remains vital in determining MOthe Pattern
RE THAN A COACH ofINWorld
G..... Trade
trade pattern because it commands a great • The past three turbulent decades witnessed
influence over demand and supply major changes in the volume and
dynamics in an economy. composition of international trade. World
1) Location/Accessibility: Development of trade in goods and services jumped from $2
transport and communication networks, trillion in 1980 to over $6.7 trillion in 2007,
new means of transport, opening up of new or more than 36% of gross world product, a
trade routes transcending the geographical clear sign of the increasing integration of
barriers like mountains, oceans and the national economies (Figure 1), although this
inertia of distance. number declined slightly in the face of the
global economic crisis of 2008. Of these
2) Availability of resources: exploration of
exports, agricultural goods comprised 7.6%
new resources, localised presence such as
by value; mining ores, fuels and minerals
oil in the middle- east, decides the direction
another 10.8%; all manufactured goods
of trade, loss of initial advantage leading to
61.3%; and all services 20.2%. Because a
Industrial Inertia.
small group of economically developed
countries produce the bulk of the world’s
3) Demographic factors:(a) Supply of labour- tradable goods, and have the disposable
establishment of new industries in incomes to afford imports, global trade is
developing nations such as India, largely confined to a “triad” consisting of
Bangladesh etc. (b) Market creating demand Europe, North America, and East Asia .
for the product-Asia,Africa, Latin America
etc due to huge population base and raising

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Analysis of global trade indicates towards following pattern-

1) Developed countries have a greater share of global trade than developing countries.

GUIDANCE IAS
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2) Developing nations export valuable between the developed, rich countries,

manufactured goods, while developing especially between industrial leaders such
countries export cheaper raw materials. as Germany, Japan, the United Kingdom and
3) The greatest volume of trade occurs the United States.

GUIDANCE IAS
MORE THAN A COACHING.....

4) Shifting patterns of trade developing countries increased their share.

• Share of developing nations are steadily • Over this 15-year period, China’s share alone
increasing. increased from 2.6 per cent to about 10 per
• Developed countries no longer have as cent.
large a share of international trade as they • Over the same period, the market share of
once did. Latin America and the Caribbean increased
• Between 1995 and 2010 their share in world from 4.5 per cent to 5.9 per cent.
merchandise trade dropped while • The value of Africa’s merchandise exports

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rose from $100 billion in 1995 to $560 billion Stated (CIS), and the Caribbean, their main
in 2010. Its share in world trade improved exports destinations were Europe, Asia and
modestly from 2.0 per cent to 3.2 per cent. North America. (WTO 2010).
• East and South Asia include three of the • The emergence of regional trading blocs,
most dynamic emerging economies: China, where members freely trade with each
India and the Republic of Korea. other, but erect barriers to trade with non-
• They accounted for around one third of members, has had a significant impact on
world exports and two thirds of developing the pattern of global trade. While the
country exports in 2010, as can be seen in formation of blocs, such as the European
the graph below. Union and NAFTA, has led to trade
creation between members, countries
• Experts believe that rapid growth markets
outside the bloc have suffered from trade
in developing world will become an even
diversion.
more dominant force in global trade over
the coming decade, with the Asia-Pacific • Intra developing country trade or South-
region set to experience the fastest growth South (SS) trade has been growing in the
in global trade to 2020. past decade. SS exports between 1995 and
2005 increased by 197% compared to exports
• Trade will also be increasingly focused
to the rest of the world which only increased
around Asia, the Middle East and Africa,
by 143%. In Asia, 51% of its exports to the
suggesting that the key geographical
world went to the South and for Africa and
location for companies will change.
the Americas; exports to the South were
• Europe’s exports to Africa and the Middle 30% and 27% of their total exports.
East by 2020 are forecast to be almost twice
• Inter-regional trade is also growing with the
as large as Europe’s exports to the US.
emergence of global hubs, centred on
• China’s dominance in low cost South Africa, Brazil and China. These hubs
manufactured goods will come under have allowed an expansion in African
pressure from countries such as exports, where most of their exports have
GUIDANCE
Bangladesh, Vietnam and parts of Africa.
IAS
shown maximum growth in Asia. The reason
• The fastest-growing trade route will MOREbeTHAN A COfor
ACHthis is most likely that Africa is fuelling
ING.....
between India and China. manufacturing sectors in Asia. A regional
• Newly industrialised countries like India and pattern emerged where manufacturing is
China have dramatically increased their concentrated in Asia, agriculture in the
share of world trade and their share of Americas (Caribbean, Central America,
manufacturing exports. China, in particular, South America) and resource based
has emerged as an economic super-power. production (mainly fuel) in Africa.
China’s share of world trade has increased
in all areas, and not just in clothing and low- 6) Share of Agriculture,Manufacturing and
tech goods. For example, in 1995, the US had services in Global Trade
captured nearly 25% of global trade in hi-
• Export of merchandise trade is mainly in
tech goods, while China had only 3%. By
manufactured goods which contracted by
2005, the US share had fallen to 15%, while
15.5% in volume terms with a total share of
China’s share had risen to 15%.
68.9%, with chemicals (11.9%) and office
and telecom equipment (10.9%) being the
5) Dominance of Intra-regional trade main exports.
• Intra-regional trade currently dominates • Agricultural products have a 9.6% share in
world trade. Europe accounted for 72% of total merchandise exports and fuels and
all European trade, 52% of Asians exports mining products an 18.6% share. (WTO 2010)
remained within Asia and 48% of North • In terms of commercial services trade, it
American exports remained in North now accounts for more than 20% of total
America. However for the Middle East, trade.. The services sector was hardest hit
Africa, the Commonwealth of Independent

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due to the economic situation with income countries, i.e., two-way trade in
transport and financial services sectors similar products between similar countries,
feeling the brunt of the impact. e.g. the French export cars and import
Trade among North and South division: German cars 3
• In geo-economics lexicon, Trade between • Changed in past decade where growth in
US, Canada, Western Europe and Japan countries such as China and India suggest
usually referred to as North-North trade. differences in technology/resources are
strong motivations for trade 3 Hanson (2012)
• South-South commerce (trade between
suggests there has been return to notion of
developing countries), and North-South
comparative advantage North–South Trade.
commerce (trade between developed and
developing countries) are the common S-S
and N-S trade blocks. Regional Analysis of Trade Pattern
South–South Trade • Despite the common trade pattern,the
 *Key explanation put forward for growth in volume, growth, and composition of trade
South-South trade is - vary widely among the world’s major trading
countries and regions in a significant way.
• expansion of multistage global production
networks . The United States

• Offshoring of production allows firms to • The United States is by far the world’s largest
fragment manufacturing across borders by trading nation, accounting for more than $4
locating specific production stages in trillion worth of combined exports and
countries with lowest cost . imports in 2008. During the 1950s, it
accounted for 25% of total world trade but
• Increased specialization by emerging now accounts for only 19%, a reflection of
economies for global markets. the growing competitiveness of other
 *Growing South-South trade along lines of countries, particularly in Europe and East
comparative advantage, i.e., resource-poor Asia. From 1960 to 1970, the United States
emerging economies importing GUIDANCE
from IAS
enjoyed a net trade surplus as a result of its
strength
resource-rich emerging economies . MORE THAN A CO in manufacturing, low oil prices,
ACHING.....
and the weak value of the dollar. However,
 *For low-income countries 70% of
following the petroshocks of the 1970s and
agricultural export growth and 73% of raw
deindustrialization, this surplus turned into
materials growth due to shipments to low-
growing trade deficits. In 2008,trade deficit
/middle-income countries.
was about $780 billion, compared with $75
 * Low-income countries send most of their billion in 1993. When trade in services and
output of clothing and shoes to high-income returns to capital investments are included
countries . (i.e., in the current account), the enormous
 *Middle-income countries export diverse size of the U.S. deficit puts it in a unique
set of goods: agriculture (Argentina and position internationally . The major U.S.
Brazil); metals (Russia, Korea, South Africa, trading partners include Canada, China,
and Chile); electronics (Korea, Malaysia, Mexico, and Japan.
Thailand, and Philippines); transportation • The destination of U.S. exports has
equipment (Korea, Mexico, Poland, and gradually undergone an important shift—
Turkey). away from the traditional European markets
North–South Trade and toward East Asia, Mexico, and Canada.
The reasons behind this change include the
• In 1980s and 1990s, due to dominance of rapidly growing economies of Asia, so that
high-income countries in global trade, trans-Pacific trade now exceeds that across
orthodox models of trade (Ricardian/ the Atlantic. Another reason is the progress
Heckscher-Ohlin) went out of made under the World Trade Organization
fashion.Specifically could not explain in liberalizing tariffs in many countries.
observed intra-industry trade among high-

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The European Union mainly food, minerals, and fuels, went to

• Europe’s trade, as a proportion of total world the United States.
trade, is disproportionately large compared • Latin America’s new hope to achieve wealth
with its population of one-half billion and a prominent place in the world
people (Table 4). The European Union (EU) economy is centered on export-led
is the largest trading block in the world, with industrialization, led by Mexico, Brazil, and
exports and imports each totaling about $1.9 Chile.
trillion in 2008. MEXICO
• Although it possesses only one-fifteenth of • The chief trading partner of most Latin
the world’s population, it accounts for 50% American states is the United States.
of world trade because of (1) the strength Mexico’s balance of merchandise trade is
of the EU, (2) short distances and well- mainly in labor-intensive manufactured
developed transport systems among products (52%), many of which flow back to
member countries, and (3) complementary the United States from along the border.
trade flows among its smaller states. Petroleum and its by-products, as well as
• 75% of all exports from European nations agricultural products, account for 45% of
go to other European nations. Italy, France, Mexico’s exports.Sixty percent of Mexican
and the United Kingdom have populations imports are semifinished industrial input
of 60 million each, while Germany has materials for final production; another 23%
roughly 80 million. Other countries are much is manufacturing and plant equipment.
smaller. Some have food resources, such as These types of imports are necessary for
Denmark and France; some have energy Mexico to maintain its status as a newly
resources, such as Norway, the Netherlands, industrializing nation.
and the United Kingdom; some produce SOUTH AMERICA
iron, steel, and heavy equipment, such as
• Represents a large and diverse picture of
Italy, Germany, France, and Spain; and
economic growth, change, and stagnation.
others produce high value consumer goods.
The southern countries of Argentina,
Latin America GUIDANCE IASChile, and Bolivia have had strong
Uruguay,
• Latin America comprises a group of M ORE THAN A COACH ING.....
ties to Western Europe. Each country is more
countries with different levels of tied economically to Europe, the United
population, income, and economic States, and East Asia than to one another.
development. Latin America has some of However, trade among many South
the poorest countries in the world (e.g., American countries is facilitated by the
Bolivia and Paraguay in South America, Haiti Mercosur Trade Agreement, which
in the Caribbean, and Nicaragua and eliminated tariffs on most goods traded
Guatemala in Central America). For among the five member states (Argentina,
centuries, under Spanish colonialism, their Brazil, Paraguay, Uruguay, Venezuela).
traditional role in the world economy was Brazil
to provide primary materials, namely
• Largely exports primary-sector products,
agricultural exports and mineral resources,
such as soybeans, iron ore, and coffee, but
to Europe and North America. This pattern
also exports transportation equipment and
has been typical of less developed nations.
metallurgical products. The largest single-
Latin American countries today are diverse
country market for Brazilian exports is the
not only with regard to population and size
United States, accounting for 20% of its total
but also with respect to development and
exports.
natural resources. Some, such as Argentina,
have grain surpluses; others, such as East Asia
Venezuela and Mexico, are rich in iron ore • The fastest-growing world trade region is
and oil. Brazil has a wealth of minerals and East Asia and the Pacific. After Europe, this
is a strong producer of manufactured goods. region has the largest amount of internal
In 2008, 62% of Latin America’s exports, world trade, amounting to 23% of the

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world’s total. In this region, Japan investment in the region, especially in Japan
traditionally took the lead role. Since the and the Four Tigers, grew tenfold.
1960s, Japan has been joined by the Four China
Tigers of Taiwan, South Korea, Singapore,
• Following a long period of isolation lasting
and Hong Kong. More recently, however,
into the 1950s and 1960s, China opened up
new emerging tigers followed suit with
to international trade and investment after
rapidly growing economies: Thailand,
the death of Mao Zedong in 1976. During
Malaysia, Indonesia, and China.
the 1980s, under the policies of Deng
• While the rest of the world reeled from two Xiaoping, China allowed foreign companies
major oil price hikes in the 1970s, East Asia to set up joint ventures there. Special
forged ahead with unprecedented growth. Economic Zones (SEZs) were created along
Several factors contributed to this success, the coast to produce goods for world
including U.S. economic and military markets. These economic zones received
subsidies, the Confucian culture dedicated tax incentives but were subject to much
to learning, and governments that actively legal red tape. Today, China has become a
promoted a shift into export promotion. In major actor in world trade . It has an
addition, Japan and other countries enormous pool of workers, low wages, and
protected home markets with high import relatively high levels of worker productivity.
duties.
• Primary trading partners being Japan and the
• The East Asian/Pacific governments United States.
switched from import substitution to export
• Over the last two decades, China recorded
promotion, with a new emphasis on
an annual growth in GDP of 8% to 14%,
electronics, automobiles, steel, textiles,
continuing the surge in investment led
and consumer goods, whereas the other
growth that began in the 1980s. Indeed, if
developing countries in Latin America,
current rates of economic growth continue,
Africa, and South Asia did not have such
China may well be the world’s largest
policies. From 1970 to 2000, foreign
economy by 2040.
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India supplies were interrupted by Arab boycotts

• In South Asia, India has the world’s second- of the West for its support of Israel in the
largest population, with 1 billion people, but 1973 war, by the overthrow of the Shah of
a relatively small economy, a reflection of Iran in 1979, and by the Iraq–Iran war, and
the huge pools of poverty found there. Its prices rose dramatically. As a result, OPEC’s
world trade is minuscule but growing . As a revenues soared and a worldwide recession
result of the Green Revolution, India is self- was triggered, which accelerated
sufficient in food production. Today, it is an deindustrialization in the West and
exporter of primary products, gems and essentially ended the post-WWII boom.
jewelry, textiles, clothing, and engineering • Recently,fluctuations in oil prices were
goods. In order for its factories to operate, occurring,other sources of oil, synthetic
it must import industrial equipment and fuels, and solar, geothermal,and nuclear
machinery and crude oil and by-products, power sources were being explored. OPEC’s
as well as chemicals, iron, and steel. largest market was Western Europe, which
The Middle East in the past had few supplies of fossil fuels.
Before the oil crises, the Middle Eastern
• The Middle East contains approximately
nations fulfilled 45% of Western Europe’s
two-thirds of the world’s oil reserves, with
energy needs. However, that proportion
Saudi Arabia accounting for more than one-
dropped as a result not only of the
third of the world’s total. Other oil producers
exploitation of the North Sea oil fields but
and exporters are Iraq, Iran, Bahrain,
also increased coal production in central
Kuwait, the United Arab Emirates, Oman,
Europe. Outside of the oil-exporting
and Qatar . Countries in the region without
countries, Israel exports cut and polished
significant oil supplies include Egypt, Israel,
diamonds, machinery, computer software,
Jordan, Lebanon, Turkey, Yemen, Morocco,
and telecommunications equipment, and it
and Tunisia. Inexpensive oil from the Middle
is the only hightech economy in the Middle
East fueled the world (literally) for a long
East. Throughout the region, continued
time. In fact, the United States and the
conflicts, such as in Iraq and that between
Western European nations have GUIDANCE
enjoyed a IAS
Israel and the Palestinians, has depressed
large supply. Cheap Middle Eastern oilTHAN A COACHING.....
MORE the tourist industry.
helped rebuild Europe and Japan after
World War II. However, in 1973 and 1979, oil

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MAJOR GLOBAL TRADE FLOWS parts. Japan and the East Asian countries,
• Six major commodity groups merit further especially the Four Tigers of South Korea,
attention as fundamental to understanding Taiwan, Hong Kong, and Singapore, together
international patterns of trade: dominate the world production and export
microelectronics, automobiles, steel, of microelectronics.
textiles and clothing, grains and feed, and • United States no longer leads the world in
non-oil commodities. the manufacture of semiconductors, it is still
Microelectronics a major player in the global trade flow of
• Microelectronics includes semiconductors, microelectronics; the single largest flow of
integrated circuits and parts for integrated these products is from the United States to
circuits, and electronic components and developing countries. Canada and the

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western European nations of the EU and the developing countries, including Central
European Free Trade Area (EFTA) account for America, South Asia, and parts of East and
a much smaller proportion of overseas trade Southeast Asia (e.g., China, Thailand,
in this category. Indonesia), where labor costs are much
Automobiles lower. Correspondingly, textile production
in the past 40 years declined in the United
• Automobiles account for the largest single
States and Western Europe. International
flow of trade within the EU. Exports of
trade in textiles reflects these shifts in
automobiles within and from Europe have
production. Developing countries account
been heavy. Germany is Europe’s largest
for a growing share of global textile exports.
producer of cars, followed by France, Spain,
Major gainers include the East Asian
and the United Kingdom. The United States
countries of China, Hong Kong, South Korea,
imports large volumes of European
and Taiwan. Eastern Europe, Russia, Japan,
automobiles as well, including Mercedes,
and Canada are relatively small players in
Audis, Porsches, BMWs, Volkswagens,
the world textile and clothing trade.
Peugeots, Fiats, and Renaults. Between
1960 and 2007, Japanese automobile Grains and Feed
manufacturers made major penetrations in • Wheat, corn, rice, other cereals, feed grains,
the world automobile market , including and soybeans are included in the category
the European automobile market. The of grains and feed. The United States is the
largest volume of flow of trade in world leader in this category, although
automobiles, however, is from Japan to the Canada is also a major exporter. Among the
United States; automobiles are the developing countries, India, Egypt, and
commodity responsible for the largest hare Argentina are some of the largest net
of the U.S. trade deficit. exporters. Japan, with its small base of
Steel agriculture and arable land, is a net importer,
as is Eastern Europe and Russia. Trade within
• America has lost as much as two-thirds of
the EU is large. Grains, feeds, and food
its steel employment in the past 30 years
products have become a steadily declining
and now is a net importer GUIDANCE
of steel, but IAS
share of world trade. Some of this reduction
Western Europe continues to lead theM world
ORE THAN A COACHING.....
is because Western seeds, grains, and
in steel production and trade. In addition,
fertilizers are now commonplace in Third
the EU sends billions of dollars worth of
World nations, and the Green Revolution
steel to developing countries, although the
has made it possible for some developing
single largest flow of steel is from Japan to
countries to provide for themselves.
developing countries.
Non-oil Commodities
• In the post–World War II period, steel made
by traditional producers in Europe and North • The term commodities has different
America became uncompetitive as new meanings, but in the discourse of
production centers began to emerge in international trade it is often taken to mean
Brazil, South Korea, Taiwan, and Japan. The raw materials. Non-oil commodities include
migration of steel production to the Third copper, aluminum, nickel, zinc, tin, iron ore,
World reflected the growing importance of pig iron, uranium ore, crude rubber, wood
labor costs, government subsidies, and and pulp, hides, cotton fiber, and animal
taxes to the delivered cost of steel. There and vegetable minerals and oils. The United
are a few problems of the British and U.S. States is a large exporter of this broad group
steel industries: insufficient reinvestment, of goods, primarily to the economies of
reluctant unions, narrow-minded Europe and Japan, but the developing
management, and lack of government countries of the world lead in the export of
support of an ailing industry. raw materials. The largest single flow of raw
materials is from developing countries to
Textiles and Clothing
Japan, which lacks significant natural
• Labor-intensive textile and clothing resources and arable land, and from
manufacture has largely shifted to developing countries to Western Europe.

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Since the early days of capitalism, the • China has increased supply of educated
international division of labor was based on labor, attracted investment by multinational
international trade, which led the world’s firms, and improved transport and
periphery—colonies and today’s less communications – it likely has increasing
developed countries—to trade their raw comparative advantage in electronics.
materials for industrialized goods, primarily 2) Resurgence of multinational Economic
from Europe and other developed nations Organisation
in North America and Japan.
• As nations turn inward to concentrate on
problems of economic growth and stability,
we are witnessing a resurgence of
Evolving Trade Pattern protectionism. But also in evidence is a
strong, simultaneous countermovement
1) Recent dynamics of specialisation:
toward international interdependence.
• Middle-income countries moved from Scores of multinational organizations have
specializing in apparel and footwear in 1994 sprung up that for the most part are loosely
to electronics by 2008 . connected leagues entailing little or no
• Consistent with middle-income countries surrender of sovereignty on the part of
accumulating human and physical capital member nations.
pushing them out of labour intensive into • Some of these international organizations
more capital-intensive goods . are global in scale, the most inclusive being
• Low-income countries such as Bangladesh the United Nations (UN), with 191 member
and Vietnam are filling the space vacated nations.
by middle-income countries in apparel. •Other international organizations have a
• Large changes in specialization have also regional character; for example, the
occurred in countries such as China. Association of South-East Asian Nations
• China not just switching from assembling (ASEAN) and the Asian Development Bank
shoes to assembling computers, but (ADB). Many international organizations are
GUIDANCE
manufacturing more technologically IASnarrow in focus—mostly military,
relatively
suchING.....
MORE THAN A CO
advanced goods and accounting for more
ACH as the North Atlantic Treaty
value-added, e.g., Huawei (mobile phones) Organization (NATO), or economic, such as
and Lenovo (laptops). the Organization of Petroleum Exporting
Countries (OPEC).
• Some doubt China’s export strength in
electronics is due to comparative • Regional economic integration blocs are the
advantage, but rather to industrial policy the new realities of the world translating
(Rodrik, 2006) – but Hanson (2012) argues into various types of associations as shown
stock of human capital would indicate below.
specialization is not unwarranted .

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