6.2.3 Global Shift of Industry and Agriculture Notes

Environmental Costs of Industrial Globalization

1. Imagine a factory in a low-income country (LIC) producing goods for high-income countries (HICs).
2. The factory provides jobs but also releases untreated waste into nearby rivers, harming ecosystems and communities.

Manufacturing Industries: Pollution and Lax Regulations

Why Do Industries Relocate to LICs?

1. Cheaper Labor: Lower wages reduce production costs.
2. Lax Environmental Regulations: Fewer restrictions on pollution and waste management.
3. Tax Incentives: Governments offer incentives to attract foreign investment.

Why Does Pollution Happen?

1. Weak Enforcement: Regulations exist but are poorly enforced due to corruption or lack of resources.
2. Economic Priorities: Governments prioritize economic growth over environmental protection.
3. Limited Awareness: Communities may lack knowledge about the long-term impacts of pollution.

Agribusiness Impacts: Deforestation and Resource Depletion

Agribusiness Controls Global Food Production Systems

1. Agribusiness: TNCs specializing in agriculture - production of seeds, fertilizers, pesticides, and farm machinery, farming itself, food processing, distribution and marketing.
2. Most of 40% of Earth's terrestrial surface used for agriculture is controlled by agribusiness.
3. Around 500 companies control 70% of food choice. Some of them are well-known and recognizable by consumers, some remain highly specialized and are rather known only by farmers.

Negative Impacts of Agribusiness

1. Deforestation:
   1. Forests are cleared for crops like soy, palm oil, and cattle ranching.
   2. This leads to biodiversity loss and increased carbon emissions.
2. Soil Erosion:
   1. Intensive farming depletes soil nutrients, reducing agricultural productivity.
3. Water Depletion:
   1. Large-scale irrigation systems drain rivers and aquifers, threatening water supplies.

Case study

Amazon Rain Forest Deforestation

1. Amazon Rain Forest and other rain forests deforestation for soy farming

The Amazon Rain Forest

1. World’s largest tropical rainf orest (5.5 mln km2).
2. Covers 40% of the South American landmass (not just Brazil; also parts of French Guiana, Suriname, Guyana, Venezuela, Colombia, Ecuador, Peru and Bolivia).
3. Home to many groups of indigenous people (incl. the Yanomamo, the Kayapo and the Tupi).

Deforestation leads to:

1. Biodiversity Loss:

• The Amazon is home to 10% of the world's known species: 1 million plant species, over 500 species of mammals and over 2000 species of fish, some of them endangered.
• Deforestation destroys habitats, pushing species to extinction.

1. Loss of Vegetation Cover and Soil Erosion:

• Deforestation removes the dense canopy and root systems that stabilize the soil, leading to increased vulnerability to wind and water erosion as there are fewer plants to absorb rainfall and hold the soil in place.
• Without the protective vegetation, rainfall is less effectively absorbed into the ground, resulting in higher surface runoff that quickly washes away topsoil, further exacerbating soil erosion and degradation.

1. Disruption in Water Cycle:

• Deforestation decreases the number of trees and plants that release water vapor into the atmosphere through transpiration.
• The reduction in vegetation can lead to decreased atmospheric moisture, potentially resulting in reduced rainfall and longer dry periods.

1. Climate Impacts:

• Forests act as carbon sinks, absorbing $CO_2$.
• Clearing them releases stored carbon, transforming the rain forest from a carbon sink to a carbon source, accelerating climate change.

Potential Responses

Technologies and Cleaner Production

1. Investing in energy-efficient technologies reduces emissions and waste.

Monitoring Systems

1. Satellite imagery and AI can track deforestation and pollution in real-time.

Circular Economy

1. Recycling and reusing materials minimize waste and resource depletion.

Local Food Production

1. Reducing transportation emissions, supporting biodiversity, being more accountable, and promoting sustainable agricultural practices.

Reflection and Broader Implications

1. Economic Disparities: The global shift of industry and agriculture can exacerbate economic inequalities, as wealthier nations often benefit from relocating production to lower-cost regions, while developing countries may struggle with the environmental and social impacts of rapid industrialization and actions of agribusiness.
2. Environmental Sustainability: As industries relocate and agricultural practices evolve, effects like deforestation, pollution, and climate change have to be addressed, necessitating a balance between economic growth and ecological preservation.
3. Cultural Transformations: The globalization of industry and agriculture can lead to significant cultural changes, as local traditions and practices may be overshadowed by global supply chains and corporate influence, raising questions about cultural identity and heritage in affected communities.