CAPE Unit 2 Module 2-Industry- Factors that influences location of industries and more

1. CAPE GEOGRAPHY MODULE 2
INDUSTRY
MR JOHNSON
CAPE GEOGRAPHY MODULE 2
Factors influencing location of industries
Raw materials
Industry in 19th
- century Britain was often located close to raw materials (ironworks near iron
ore), sources of power (coalfields) or ports (to process imports), mainly due to the immobility of
the raw materials which were heavy and costly to move when transport was expensive and
inefficient. In contrast, todays industries are rarely tied to the location of raw materials and so are
described as footloose. There is now a greater efficiency in the use of raw materials; power is
more mobile; transport of raw materials, finished products and the workforce is more efficient
and relatively cheaper. Components for many modern industries especially high tech are
relatively small in size and light in weight and some firms may simply rely on assembling
components parts made elsewhere. A location close to markets, labor supply or other linked
firms has become increasingly important.
Industries that still need to be located near to raw materials are those using materials which are
heavy, bulky or perishable; which are low in value in relation to their weight (industries which
lose weight or bulk during the manufacturing process). Industries that lose weight during
manufacture include food processing (butter has only one-fifth the weight of milk, refined sugar
is only one-eighth the weight of cane) and forestry (paper has much less mass than trees). Other
industries like iron and steel, which use very large quantities of coal and iron ore, losing lot of
weight in the process of manufacture, are generally located near the sources of coal and iron ore
Power supplies
Early industry usually locate close to sources of power, which in those days power could not be
moved. However, as newer forms of power were introduced and the means of transporting it

2. were made easier and cheaper, this locational factor became less important. During the medieval
period, when water was a prime source of power, factories had to be built alongside fast-flowing
rivers. When steam power took over at the beginning of the Industrial Revolution in Britain,
factories had to be built on or near to coalfields, as coal was bulky and expensive to move. When
canals and railways were constructed to move coal, new industries were located along transport
routes. By the mid-20th
century, oil was being increasingly used as it could be transported easily
by tanker or pipeline. This began to free industry from the coalfields and to offer it a wider
choice of location.
Today, oil, coal, natural gas, nuclear and hydro-electric power can all be used to produce
electricity to feed the national grid. Electricity can now be transmitted over long distances ( In
1900, electricity could be transmitted economically only 59km; today, the distance is over
1500km).
Markets
Today, the pull of a large market is more important than the location of raw materials and power
supplies; indeed, it has been suggested that flexibility and rapid response to changing market
signals are perhaps the most important determinants of location. Industries will locate near
markets if:
 The product becomes more bulky with manufacture or there are many linkage industries
involved ( the assembling of motor vehicles)
 The product becomes more perishable after processing ( bread is more perishable than
flour) it is sensitive to changing fashion clothes); or it has a short life-span (daily
newspapers)
 The market is wealthy
 The market is very large ( north-eastern states of the USA, or south east England)
The entire process of manufacturing is useless until the finished goods reach the market.
Nearness to market is essential for quick disposal of manufactured goods. It helps in reducing the
transport cost. Ready market is most essential for perishable and heavy commodities.
Sometimes, there is a considerable material increase in weight, bulk or fragility during the
process of manufacture and in such cases industry tends to be market oriented

3. Labour
Factories often need to employ large numbers of workers and for this reason it is an advantage to
be located in a town or city. Many of the quaternary industries in the UK are found near the
university towns of Oxford and Cambridge, as they wants to attract skilled, knowledgeable
graduates for their industry. In the 19th
century a huge force of semi-skilled, mainly male,
workers operated in large scale heavy industries doing manual jobs in steelworks, shipyard and
textile mills. Today there are fewer semi-skilled and more highly skilled workers operating in
small-scale light industries which increasingly rely upon machines, computers and robots. The
cost of labour especially in EU countries can be high, accounting for 10-40% of total production
costs. Three consequences of this have been an introduction of mechanization to reduce human
inputs, the exploitation of female labour and the use of cheap labour in developing countries.
Most industries in developed countries are outsourcing jobs to developing countries where the
cost of labour is cheap.
Government
Governments can greatly influence the location of industry, by giving tax incentives, cheap rent
and other benefits to companies locating in certain areas of the country. Often these are places,
which the government wants to develop economically. These policies should aim to even out
differences in employment, income levels and investment within a country. Some developing
countries use free zones/export processing zones to attract foreign industries to locate in a
particular area of their country. Free zones have special rules that make them attractive to foreign
companies such as:
 There are few limitations ( quotas) on the number of goods produced, so as many goods
as possible can be produced and sold
 There is little bureaucracy, so companies do not have to fill in endless forms about the
goods they are producing
 Governments often give tax breaks, or grants to companies setting up in a FTZ
In 1934, regional assistance was granted In Britain to Clydeside, west Cumberland, North-East
England and South Wales. This was followed by the setting up of industrial estates in areas of
high unemployment such as the Team Valley (Gateshead), Trafford Park (Manchester) and

4. Treforest (north of Cardiff). The government of Jamaica and Dominican Republic has
established free trade zones to encourage new industries to locate there.
Capital
Industries rely upon investment in buildings, equipment and training.
Capital may be in three forms
Working capital: This is money which is acquired from a firm’s profits, shareholders or financial
institutions such as banks. Location is rarely constrained by working capital unless money is to
be borrowed from the government which might direct industry to certain areas
Social capital and cultural amenities are linked to the workforce’s out-of-work needs rather than
to the factory or office itself. Houses, hospitals, schools, shops and recreational amenities are
social capital which may attract a firm, particularly its management to an area
Physical or fixed capital refers to buildings and equipment. The form of capital is not mobile, i.e.
it was invested for a specific use.
Transport
Transports costs were once a major consideration when locating an industry. Weber based his
industrial location theory on the premise that transport costs were directly related to distance.
Since then, new forms of transport have been introduced, including lorries, railways ( preferably
for bulky goods) and air ( where speed is essential). Meanwhile, transport networks have
improved, with the building of motorways and methods of handling goods have become more
efficient through containerization. For the average british firm, transport costs are now only 2-3
per cent of their total expenditure. Consequently, raw materials can be transported further and
finished goods sold in more distant markets without any considerable increase in costs.
Land
In the 19th
century extensive areas of flat land were needed for the large factory units. Today,
although modern industry is usually smaller in terms of land area occupied, it prefers cheaper
land, less congested and cramped sites and improved accessibility. Government policies during
the 1990s, under mounting pressure from environmental and local pressure groups, were aimed

5. at attracting new industry to derelict and underused brownfield sites and former industrial
premises.
Environment
The 1980s saw an increasing demand by both managers and workforces to live and work in a
more pleasant environment. This has led to firms seeking locations in smaller towns within easy
reach of open country side and away from the commuting problems and high land values of
south-east England.
Footloose industries are those that are less dependent on factors that tie them to a specific
geographical location. Unlike manufacturing industries, tertiary or services, companies do not
have to be near a source of raw materials. As long as they have suitable transport, energy and
communications links, they can locate themselves virtually anywhere in the world. Examples of
footloose industries are computer software development, telephone sales and call centres.
Factors influencing industrial development and change in a major industrial region in
MDC- North east United States

6. Factors such as raw material and energy were the main ones initiating the development of NE
United States. Iron and steel as elsewhere was at the core of linked industries such as
shipbuilding, car assembly and chemicals.
Below are some of the factors which have favored the development of NE U.S.A as a major
industrial region:
1. Availability of Raw materials
 Iron ore- These were found on the western shores of Lake Superior in the Mesabi
Range. It is a high quality ore and is easily mined as deposits are found close to the
surface.
 Coal- found around Pittsburgh- It is high quality coking coal and is easily mined as it
is close to the surface. Towns such as Pittsburgh developed close to the coalfields.

7. Most large industrial regions developed first on the basis of available coal and iron ore- they
were material oriented. In the NE United States, Appalachian coalfields, later petroleum fields
and iron ore from the Lake Superior shores fed the industrial centres of Pennsylvania. Town such
as Pittsburgh developed close to the coalfields. Later Chicago, a lake port, developed agro-
processing; Detroit, home to Ford’s car industry, attracted linked industries and the industrial
region expanded.
2. Transport
Cheap water transport on the Great lakes (Lake Michigan, Lake Erie, Lake Huron, Lake
Ontario), ST Lawrence, Ohio and Hudson rivers and canals allowed movement of the bulky raw
materials from the interior to the coast. Atlantic ports such as New York and Baltimore were
very important trans-shipment points.
3. Labour
The eastern seaboard of the United States was the main point of entry for European migrants.
There was a ready labour force bringing skills from the industrialized Europe. This area also has
some of the oldest universities in the country making highly skilled workers available.
4. Market
The large urban centers with their increasing population of both internal and external migrants
seeking industrial jobs were also the ready market for some goods and services. Some goods
were exported across the Atlantic via the large ports. Workers were well paid. Other industries
served as a market for other industries such as iron and steel used in motor car manufacture and
ship building.
5. Power is readily available in the regions

8. There are abundant supplies of H.E.P. Many H.E.P stations have been set up between the lakes
which lie at different levels. High grade coal was available. Oil could be carried in by pipelines
or tankers from the Gulf Coast States.
6. Capital/ entrepreneurs
Private investors and risk takers invested and profited from industry. They located their factories
where they could afford or for personal reasons.
Development
Linkages between industries cause industrial areas to grow. Functional linkages refer to the links
between industries; for example, steel is the raw material of many other industries. There are
many types of linkages such as:
 Forward linkages between steel industry and car manufacturers, ship building and later
aircraft making (i.e., in the direction of the finished product); Backward linkages with
industries producing the components parts or semi-finished ‘raw’ materials, for example
textile, buttons/thread for the garment industry (that is, in the direction of the raw
material).
 Vertical linkages where refining industries would be linked to shaping an end product, for
example pulp to newsprint.
 Horizontal linkages (multi-origin) refer to shared product from assembled parts, such as
brakes, tyres, radiators for the automobile industry.
 Diagonal linkages (Multi-destination) arise when the product is shared by subsequent
industries, for example nuts and bolts used by cars, clock and appliances.

9. These processes resulted in ‘locational leaders’ of industry- heavy engineering, chemicals, oil
refining, transport manufacturing (ships, aircraft, rail, automobiles). This lead to agglomeration
as industries minimized costs by sharing a range of services and using existing infrastructure.
Economies of scale resulted in very large factories with assembly lines turning out large
quantities at low unit costs. Geographical inertia also played a role in the development of the
region. Once an industry is established it tends not to move even after the initial factors are no
longer applicable. Since the infrastructure is in place, it is easier to stay than move. There was a
spatial division of labour where specialized skills were concentrated in specific areas.

11. Change factors
Manufacturing in the late 20th
century and early 21st
century is less important than tertiary and
quaternary activities in most MDCS, both in terms of employment and its contribution to GDP..
Most manufacturing industries have experienced changes in production methods and ownership.
Government policy around resulted in major changes in the location of industry by encouraging
the development outside of NE United States such as in the ‘sunbelt’: California, Florida, Texas
and Arizona. There was an increase in attraction to other regions in the second half of the
twentieth century. For example in 1995, California had more employees in the manufacturing
sector, 1.9 million more than any other state. The reasons for the decentralization from the
manufacturing belt were:
 The movement of population both to the south and west significantly increased the
market potential of these regions
 The location and exploitation of important raw materials, particularly energy sources,
encouraged investment in associated industries and strengthened the independence of
these regions. California and Texas are prime examples of the way in which raw material
endowment has had a cumulative effect on industrial development
 The climate of these sunbelt states from Florida in the east to California in the west
provided specific advantages to some industries such as aerospace, reduced space-heating
costs for all, and added positively to the perceived high quality of life
 The construction of the Interstate Highway System and other major aspects of
infrastructure considerably upgraded the accessibility of the south and west.
 The NE also fell prey to the diseconomies of scale, that is, it grew to such an extent
that its size created problems, such as traffic congestion, that is discouraged further
expansion.

12.  The attraction of lower general costs particularly in terms of lower real estate
prices, tax and labour rates along with the continuing availability of undeveloped
lands
Cheaper labour shown below
As traditional industries declined in the core, and new industries frequently looked to locate
elsewhere, the region acquired the undesired name ‘RUST BELT’. The prosperous south and
western states were called the ‘SUN BELT’.

13. Change in traditional factors
Raw materials: As more efficient methods developed less material was required per unit.
Exhaustion of some materials has led to imported raw materials and a shift to ‘tidewater’ port
location at the break of bulk point. There is increasing vertical integration of production- for
example, modern steel mills making steel and finished products on the same site.
Energy: Coalfields declined and were replaced by electricity fed by gas pipelines, hydroelectric
power and nuclear stations. Companies could therefore be ‘footlose’ and not tied to their energy
source location.
Transport- Large bulk carriers such as containers and oil tankers have made transport a less
important locational factor than in Weber’s time.
Labour- Workers are now very mobile and more highly skilled.
Markets: these are foreign as well as local.
Deindustrialization
The term ‘deindustrialization’ has been used to describe the flight of jobs from the
manufacturing to the service sector in MDCs. It is a very complex process of economic and
social change. The focus has been on changes in the level of employment because it is one of the
most obvious measures of the size of the manufacturing sector. In the European Union,
employment in manufacturing declined by about 30% in the last three decades of the 20th
century. In the United States, it is peaked in 2000.Economists say that there is a link between
economic maturity and the structure of the employment. The decline in employment in
manufacturing is represented as a natural course of economic development and is occurring in
Japan, Singapore and Taiwan.

14. A similar change in the structure of employment occurred in the industrial stage of development.
There was an increase in employment in manufacturing and a decline in agriculture because as
income rises a smaller portion is spent on food and more on manufactured goods. In addition,
technological developments in agriculture made it possible to grow more food using fewer
people. Similarly, technological developments in manufacturing have brought about an increase
in labour productivity while reducing the demand for labour. In the EU, for example, while
employment declined by 30%, productivity in the manufacturing sector increased by 50%. A
smaller number of people are producing a larger volume of manufactured goods towards
services. Services represent ‘superior’ goods and there in an increase in demand a per capita
income increases. This, together with the government provision of public sector services,
stimulated the growth of the service sector. Many manufacturing enterprises have contracted out
jobs traditionally performed in-house to specialist services, thereby boosting employment in the
service sector.
The causes of deindustrialization are:
 The filter-down of manufacturing industry from developed countries to lower wage
economies, such as those of South East Asia. As countries develop, manufacturing often
declines as production is shifted to trading partners where the costs of labor are lower.
This is what happened to the garment industry in the United States. According to a 2016
report by the Bureau of Labor Statistics, apparel experienced the "largest decrease among
all manufacturing industries with a decrease of 85 percent [over the last 25 years]."
Americans are still buying as many clothes as ever, but most apparel companies have
moved production overseas.
The New international Divison of Labor (NIDL)
There have been several changes in the pattern of world production caused by:
 Trade liberalization or the removal of barriers such as tariffs and quotas, which
formerly prevented the free flow of goods

15.  The role of multinational (transnational) corporations, organizations which have
their headquarters in the home country in an MDC but manage production or
deliver services through subsidiaries in several countries- Pepsi, Microsoft,
Reebok, Shell/Royal Dutch. There are powerful corporations, many with annual
earnings that are greater than those of some of the LDCS in which they have their
subsidiaries. Many governments compete for their investment, giving them tax
breaks and incentives.
 Improvements in communication and transportation
These developments allow different production stages to be carried out in geographically
separated areas or countries. Firms organize their activities in what is referred to as a global
chain in order to:
 Take advantage of lower production costs
 Tap into skills and expertise in developing countries in Asia for example
 Boost falling profits in saturated domestic markets
 Speed up entry in emerging markets that are growing quickly
 Overcome regulations that prohibit activities domestically
 Overcome labor shortage in the domestic market with restrictions on immigration
Multination corporations are responsible for this global reallocation of production. Production is
no longer confined to national economies but has spread to LDCs and to countries in Eastern
Europe (the Czech Republic Romania, Ukraine, and Bulgaria) where the fall of communism has
made these locations attractive.

16. Outsourcing and offshoring
Firms in MDCs outsource and offshore their production. Outsourcing is the shedding of
core functions to external providers in the home country and abroad. Offshore is
international relocation. The term ‘nearshoring’ is sometimes used to refer to offshoring
in neighboring countries such as between the United States and Canada and Mexico.
Manufacturing processes as well as services are hired out to other companies such as
subsidiaries that may be able to perform them more cheaply or efficiently. Initially,
offshoring was focused on the contracting out of customer services, but it now includes a
broader range of activities such as engineering and software production.
These are the practices that have raised concerns over the loss of jobs in MDCs.
However, proponents say that there are long-term advantages to MDCs. They increase
earning and domestic consumption in LDCs which will foster imports from the MDCS.
They increase production in and reduce cost in MDCs and therefore raise living
standards. In the United States, Companies would make savings on federal taxes for
employees and so reduce the cost of operation. When firms relocate inefficient processes
to external providers the firm could focus on areas with competitive advantage and
expand output.
Industrial Change in LDCs
It is very difficult to generalize about industrialization in LDCS. The process varies from
the large industrial regions of India, Mexico and Brazil to the small specialized regions of
Trinidad and Tobago and includes Venezuela, Nigeria and the newly industrialized
countries (NICS) of Taiwan, Singapore and Hong Kong. The LDCS became
industrialized long after most of the major industrial regions of the MDCs. Most have
limited raw materials and small markets. The factors which drove the growth of major
industrial regions in the developed world are no longer applicable. Iron and steel are

17. produced by integrated mills, globalization and MNCs dwarf the policies of individual
countries and competition in an age of trade liberalization is fierce. Generally some LDCs
have significant manufacturing regions contributing about 25% of GDP and employing
large numbers. These countries are mainly producing for export, although Brazil and
Mexico also have large home markets.
The NICS of South East Asia are among the most successful industrialized LDCs.
Although poor in raw materials and energy they are well located on important trade
routes between Asia and Europe. Countries such as Taiwan, South Korea, Singapore and
Hong Kong all have increasing levels of industrial employment and a rising share in
world exports. Government policies of import substitution industrialization incentives
and industrial parks helped to start the process. Improved infrastructure and educational
systems help to create conditions for industrialization. Later a strong financial and a
commercial sector encouraged further Japanese and US investment.
Approaches to and problems of Industrial Development in the
Caribbean
The Caribbean countries were mainly producers of raw materials for the industries of the
European colonizers. In many cases the colonies were forbidden by low from processing
their raw materials but were dependent on the purchase of finished goods from overseas.
According to potter et al The Caribbean spent ‘400 years as a globalized, peripheral
region. This reputation as an area of low-skilled, cheap labour continued after
independence. It is the basis of the location of modern export processing zones (EPZs)
and data processing centers. The Caribbean is not well endowed with natural resources
such as coal an iron ore to fuel a major industrial region as in the MDCs of the past.
Trinidad and Tobago’s oil and natural gas, Jamaica’s and Guyana bauxite are the main
mineral resources. Only limited processing is possible especially for bauxite as a result of
high energy costs.
Approaches

18. Since independence there have been many approaches to industrializing in the Caribbean:
 The Lewis (1950) industrialization-by-invitation model depended heavily on
making countries attractive to foreign investors. He argued that the volume of
trade prevented Caribbean countries from exporting on a competitive basis.
Caribbean countries should encourage foreign investment to assist in the
development of managerial, entrepreneurial, and administrative skills. He advised
on the creation of a Customs Union In the Caribbean; the creation of a special
agency- An Industrial development corporation; to drive the industrial process
and the provision of special incentives to foreign investors.
 Operation Bootstrap of the Puerto Rico model (1947). This was based on heavy
corporate tax exemptions on income generated in the country (interestingly a 10-
year phase out of this exemption began in 1996).
 About the same time the UN Economic Commission for Latin America (ECLA)
suggested import substitution industries. The purpose was t replace manufactured
goods, save foreign exchange and increase employment. The policy was
supported by tax incentives, restrictions on imports and other protectionist
measures. Industrial estates were provided and sprang up around many Caribbean
Towns.
 Export Processing Zones (EPZs) have been developed more recently to attract
foreign investment in labour intensive manufacturing. These state-designated
‘free zones’ operate outside of local regulations. Imported raw materials and
exported products have little impact on national manufacturing sectors.
These have all had limited success I increasing the industrial activity in the
region. Apart from Trinidad and Tobago, manufacturing industries employ less
than 20% of the labour force in most Caribbean countries.

19. Problems
None of the approaches described above have resulted in large varied manufacturing
regions in the Caribbean. The Puerto Rican model has worked for Puerto Rico with its
special relationship to United States but not elsewhere in the region. Protection
encouraged inefficient, low-quality, high cost production. There was heavy independence
on imported raw materials and machinery and because it was capital intensive, it made
little contribution to the unemployment problem. Companies in the EPZs in Jamaica
relocated because of high costs and security problems, Manufacturing industries have
developed in Trinidad and Tobago based on large oil/natural gas reserves and
government policy to use them for iron and steel mills and other heavy industries.
Throughout the region manufacturing industries remain low wage enclaves having little
impact on the local economies. Most governments have turned to tourism and other
tertiary activities in the face of the modern global marketplace. The decline is influenced
by such facts as:
 Globalization/trade liberalization resulting in increased competition.
 Expensive production cost of small –scale industries
 Low or inconsistent quality
 Lack of capital
 Social demands of young growing populations
 The high cost of providing security in some countries.
Case study: Trinidad and Tobago

20. Industrialization in Trinidad and Tobago is unusual among LDCS with spatially small
industrial regions in that it has developed heavy industries after light industries. Most
goods are produced mainly for an export market. It also has faced the decline of
manufacturing to just 28% of labour force even as it continues to expand the range of
industries. Most modern industries are not labour intensive but capital intensive using
machines in all aspects of the production.
Industrial activity in Trinidad has always been based on its:
 Energy sources- oil and natural gas resources. At independence, there were
limited areas of industrial activity near Port of Spain. The oil industry is still
operated by the government as well as Amoco (MNC).
 Low raw materials- a few agro-industries and food processing factories were
present for example citrus and coconut growers cooperatives; and in the south of
the country, the traditional sugar factories such as Usine Ste Madeline, at Point-a-
Pierre the MNC. Texaco has its oil refinery and Federation Chemical, its Urea
plant. Most of the goods were produced for export to benefit its British colonial
owners.
 Government policy- after independence, as in the rest of the Caribbean, the state
needed to provide jobs for the increasing population. The Lewis industrialization
by invitation model resulted in more than 14 industrial estates being established
west and east of Port-of Spain. These were mainly along the main highways and
centers of population. These estates offered factory shells and other incentives to
foreign companies. Initially most goods were for export and later import-
substitution ‘screwdriver’ assembly plants were developed for the domestic
market. These were mainly light industries lead by garments (and later a textile
mill); soft drinks/breweries; pharmaceutical; short-lived car assembly and a
variety of other light industries. Some industries left after the 10 year incentive
period but others have remained.

21. In the late 1970s government decided to create a new large industrial area at Point
Lisas to house an iron and steel plant served by its own port and electricity generation
station. This was based on the discovery of large reserves of natural gas. All other
raw materials are imported. Point Lisas is close to San Fernando and was developed
mainly reclaimed land. Although it was initially state owned by the Iron and Steel
Company of Trinidad and Tobago (ISCOTT), it was later sold after problems of
management and marketing rendered it unprofitable. It is now owned by the giant
ArcelorMittal the world’s largest steel producer employing 600,000 in 60 countries.
Expansion of a major six-lane highway between Port of Spain and San Fernando
enhanced the attractiveness of this industrial area which now houses a large methanol
factory a urea plant, petrochemical industries as well as the iron and steel plant. An
aluminum smelter is planned for further south but has been delayed by environmental
concerns.
Informal Sector
Most countries, both MDCs and LDCs have an informal sector. These comprise workers who are
not regulated or involved in the formal economy because of the failure of the economic system to
create productive employment. In many developing countries the informal sector employs up to
60% of the labor force. They are a group comprising small and medium-sized operations. A large
number of worker in this sector are women working on the streets or from their homes- street
vendors, dressmakers, confectionery makers, crafts workers, transport operators among others.
They operate without government assistance or regulation. Some are attracted to the informal
sector to avoid government regulations. Some enterprises may be illegal and may employ child
labor.

22. Informal industry is characterized by:
 Small-scale family operation
 Little capital, few tools
 Labor intensive operations
 The use of cheap recycled material
 No fixed price for goods
 Irregular hours and uncertain returns.
These activities have the advantage of providing subsistence for the most vulnerable in the
society. The profit is used within the area to purchase food and other items. Often the level of
technology is appropriate to the local conditions and hence sustainable. However, these are
usually lowly paid in precarious, sometimes dangerous conditions. Many have advocated their
integration into the formal system by giving support to micro-enterprises- access to credit and
training. One reason for the growth of the informal sector in LDCS is poverty. Unemployed
persons who are unskilled to join the formal labor force may turn to informal activities for
survival. A second reason may be excessive regulation by government. Some entrepreneurs may
wish to operate outside repressive government control.

23. Environmental impact of Industry in MDCs and LDCs
Manufacturing is important because it provides jobs and contributes to GDP of a country.
However, it have many negative effects on the natural environment. All aspects of the
environment : air, land and water, are impacted by industrialization. Lack of regulation in LDCS
has made them vulnerable as they seek employment for growing populations.
Resource use:

24. All raw-material extraction whether mining, or drilling involves disruption of natural
ecosystems. Most manufacturing industries require huge land space for operations. Huge acres of
land are to facilitate manufacturing development. A good example is the bauxite industry in the
Caribbean. Lands are cleared to construct the actual manufacturing plant. In addition lands are
also cleared to make roads to transport the bauxite to the manufacturing plant. Sometimes
communities are destroyed to access bauxite deposits. The open cast mining method used by the
bauxite industry in the Caribbean require complete removal of vegetation and top soil. In 2001 A
land use and forest cover study to determine the rate of deforestation and to kick-start a forestry
conservation programme revealed that bauxite mining was the single largest contributor to
deforestation in Jamaica.
In 50 years of operation the industry has stripped 5,099 hectares land of trees, including some
3,218 hectares of forest. It has also caused the destruction of an undetermined number of
hectares by opening access roads into forests. There are several consequences of deforestation.
The destruction of forests have led to a decline in natural habitats the support wildlife. In
addition it has forced organisms to move further into the wild, exposing them to predators and
intolerable living conditions. . Consequently, some wildlife species have faced extinction while
several others remain highly endangered. In addition deforestation contributes to global
warming. Trees store carbon dioxide in their leaves. Whenever trees are destroyed the excess
carbon that was once stores is released into the atmosphere.
Air pollution
Most countries use fossil fuel based energy sources to fuel their manufacturing industries. Fossil
fuel include coal, oil and natural gas. Whenever these fossil fuels are burnt they release gases in
the air such as sulphur. Carbon dioxide, methane and nitrous oxide. The mining of bauxite
requires several equipment such as tractors, trucks, mechanical excavators and conveyor belts.
The trucks used to transport the bauxite to the manufacturing plant uses oil as their source of
energy. Again several gases and pollutants are emitted into the atmosphere. These gases, when
too much in the atmosphere, frequently results in several illnesses and environmental hazards.
Formation of acid rains, the presence of smog, and heightened incidences of respiratory disorders

25. among humans are some of the implications of air pollution. The caustic soda that is stored in
large ponds in Bauxite mining can also cause air pollution. On windy days rust-colored particles
from the ponds blow in the air creating tiny dust storms which may reduce air visibility in nearby
communities.
Water pollution
Both surface and ground water, ocean and seas are affected. Industries release organic materials,
petroleum products, metals and acids into water systems. Jamaica’s bauxite/alumina industry
produces a waste product known locally as “red mud”. This waste has been disposed of, for over
30 years since the plants were constructed, in unsealed mined out pits. The red mud ponds are in
the direct path of ground water flow and pose a serious threat to ground water reservoirs and
consequently the ground water reserves of the island. Sometimes the waste go directly into
nearby rivers and underground water sources. Communities near bauxite plants usually
complain about the contaminated and unsafe water. In addition the contaminated water from red
mud lakes can kill marine animals. In 2012 NEPA concluded that Windalco had released toxic
substances into a gully that flowed into the Rio Cobre River causing a massive fish kill. People
livelihoods are destroyed indirectly as they are dependent on these rivers for fishing.
Approximately 200 million cubic meters (MCM) of groundwater have been contaminated
Rivers in Guyana have been polluted by cyanide spills in the process of mining gold.
Case study: Trinidad and Tobago
The Petrotrin oil spill was a series of oil spills that occurred on the island of Trinidad and
Tobago.
In total, eleven oil spills occurred between 17 December 2013 and 29 December 2013. The first
spill began on 17 December at 4:45 a.m. when the 16-inch (410 mm) sea line No 10, operated by
the Trinidad's national oil company Petrotrin ruptured at the bottom of the Gulf of Paria near the
company's Pointe-a-Pierre refinery.
There are somewhere between 400 to 500 different species of marine fish as well as 21 different
types of freshwater fish. There are also many mammals, reptiles and amphibians that inhabit the

26. bodies of water that surround Trinidad. The Petrotrin oil spill has had an adverse effect on this
diverse ecosystem. The spill has put the country’s marine and freshwater animals that inhabit the
bodies of water near the Pointe-a-Pierre base, such as Queen’s beach, Coffee beach and the
Caribbean Ocean, in harm’s way. Several fishermen have reported seeing many oil-soaked birds
as well as many dead fish near beaches close to the oil spill.
The quality of air in Trinidad has suffered as a result. Directly following the oil spill, residents of
nearby areas reported smelling a very potent odor. It was eventually discovered that the residents
were smelling toxic fumes that were being produced from the oil spill
In Trinidad, polluting effluent from the Point Lisas complex flows into the semi-enclosed Gulf of
Paria. Offshore rigs and tankers have polluted the east coast of the country with spills and fires.
Case Study: China
China’s major river systems exhibit the scope of the problem. Perhaps 70 percent of their water
is so polluted that it has been deemed unsafe for human contact. In addition to untreated sewage
released into these waterways, high-growth industries such as textiles, paper manufacturing,
chemicals, and pharmaceuticals account for a large share of this pollution.
At dumps, toxic runoff often percolates through the earth to contaminate groundwater aquifers
Untreated mining and industrial waste leaves some waters contaminated with such high metal
content that they literally run red with rust-colored water. Lead levels have been recorded in
Chinese rivers that are some 44 times greater than accepted norms.