IGCSE Theme 3 Economic Development Case Studies

Question 1

Explain the positive impacts of Shell’s operations in Nigeria

Answer 1

Employment: It employs roughly 5,000 people (95% of whom are Nigerian). Another 20,000 are employed indirectly by companies providing services and supplies.

Multiplier effect: Shell Companies in Nigeria spent $1.3 billion on contracts awarded to Nigerian companies in 2018.

Tax: Shell paid $1.7 billion in taxes to the Nigerian government in 2018.

Question 2

Explain the negative impacts of Shell’s operations in Nigeria

Answer 2

Oil Spills: Oil spills (over 4,000) since 1960 have contaminated food supplies and destroyed natural habitats.

Deforestation: Deforestation to clear the land to produce oil and gas has reduced local forest cover and the supply of foodstuffs.

Health hazards and economic leakage: Shell has extracted $30 billion from the land of Ogoni people since the 1950s yet the Ogoni people have seen no benefits of the profits. Instead they live with the pollution and poisoning of the land and water from pipelines, oil spills and gas fires.

Conflict: Conflict arose between Shell and local tribes close to extraction, with the Ogoni people of the delta protesting, sometimes violently, about environmental issues and lack of government support.

Question 3

Describe and explain the location of Nigeria’s operations

Answer 3

Shell operates in more than 70 countries and employs more than 92,000 people worldwide.

Extraction: Shell extracts oil and gas in countries such as Nigeria, Canada, Argentina and the UK. Shell’s operations account for more than 21% of Nigeria’s total petroleum production.

Research and development: Shell’s major technology centres are found in the USA, the Netherlands and India. The Shell Technology Centre in Amsterdam houses around 1,300 people in labs and offices.

Renewable investment: Shell made its first move into the wind business over 20 years ago. It now has more than 8 gigawatts of wind projects including in the UK and USA.

Headquarters: Shell’s headquarters are now in London after moving these from the Netherlands in 2022. This is for taxation purposes.

Question 4

What are the natural inputs of large-scale commercial sugar farming in Eswatini?

Answer 4

Relief: Eswatini’s Low Veld region has flat land suitable for large-scale mechanisation.

Temperature: Sugar needs a hot climate. Eswatini’s Low Veld area has an average monthly temperature of 29°C in summer, and temperatures rarely fall below 15°C. There are also a lot of sunshine hours every day.

Rainfall: Sugar needs at least 1800mm of rainfall a year, which Eswatini does not receive. so irrigation is needed from the country’s rivers.

Soils: The alluvial soils in the river valleys are rich in nutrients and retain moisture.

Question 5

What are the human inputs of large-scale commercial sugar farming in Eswatini?

Answer 5

International Markets: Entry to international markets provided by government trade agreements - a political input. Trade agreements include the United States Sugar Program, which allows sugar sales to the USA.

Labour: both unskilled and skilled (engineers, managers, agriculturalists, chemists, machine workers etc.,). The big sugar companies offer their employees benefits, such as: schools on the estates, college scholarships, free or subsidised housing, sporting/recreational facilities etc.

Capital: Large amounts of capital is required to buy the land, build the irrigation canal, build the sugar mills and buy machinery (the sugar industry is highly mechanised).

Question 6

What are the processes involved in large-scale commercial sugar farming in Eswatini?

Answer 6

The growth of the sugar cane crop in Eswatini takes about 12 months

Irrigation: Irrigation water is taken from rivers by canals. It then reaches the cane by a variety of methods: furrow 39%, sprinkler 54%, drip 4% and centre pivot 3%.

Burning: Once grown, the ripe sugar cane is first burned in the fields. This makes harvesting it easier, because it removes all of the leaves- but does not damage the sugar inside.

Harvesting: The cane is then cut down and taken to the sugar mills for crushing.

Replanting: Sugar cane will regenerate for several years before replanting is necessary. New plants are raised in a nursery for replanting in the fields.

Question 7

What are the outputs from large-scale commercial sugar farming in Eswatini?

Answer 7

Eswatini has three sugar mills: Mhlume, Simunye and Ubombo. The first two are part of the Royal Swaziland Sugar Corporation (RSSC), which operates a 20,000 hectare sugar cane estate with an annual production capacity in excess of 500,000 tonnes.

The outputs are: raw sugar, refined sugar, brown sugar, molasses and bagasse.
- All three mills produce raw sugar and brown sugar
- Mhlume and Ubombo also produce refined sugar
- Molasses is a sticky substance which does not form sugar grains. It is produced at all three mills. The two main distillers (USA Distillers and RSSC distillers) use most of the molasses for the production of alcohol. The remainder is sold to small local and foreign customers, who use it as an input for food production and as animal feed.
- The bagasse (fibre) is used as animal feed.

Question 8

Explain the causes of food shortages in Eswatini

Answer 8

In 2021, one third of Eswatini’s population were suffering from acute food shortages. A range of factors have contributed to this situation.

Drought: In recent years Eswatini has been affected by a series of droughts. In 2016, the drought was caused by an El Nino event. In this year, the harvest produced 10% of the required amount of food and 40,000 cattle died. In 2020, erratic rainfall led to a poor harvest helping contributed to the one third of the population suffering acute food shortages in 2021.

HIV/AIDS: The Eswatini population had been badly weakened by HIV/AIDS. In 2016, 27% of the population were infected (the highest rate in the world). Many are unable to work as a result of this, reducing the agricultural workforce.

Cash Crops: In Eswatini, many small scale farmers have decided to grow sugar cane, rather than staple foods like maize. Sugar is Eswatini’s biggest industry, employing over 93,000 people.

Social Unrest: A series of ongoing protests in Eswatini against the monarchy and for democratisation began in late June 2021. Social unrest has led to the destruction of businesses in urban areas. The delivery of food aid and goods was also hindered by looting of NGOs’ assets.

Question 9

Describe the negative effects of food shortages in Eswatini

Answer 9

-Malnourishment: Chronic under-nutrition is a particular problem for children. Stunting, which is a sign of chronic malnutrition, is a serious problem in Eswatini, 25% of children under the age of five are stunted.

Premature Deaths: Food shortages have contributed to premature deaths in Eswatini with the average life expectancy being a mere 60 years old.

Dependence on International Food Aid: Many people in Eswatini are dependent on food aid and never get to acquire much needed agricultural skills. The UN World Food Programme (WFP) fed more than 200,000 people in the aftermath of the 2016 droughts.

Protein deficiency diseases: Kwashiorkor is common amongst children in Eswatini due to a lack of protein in their diets. If kwashiorkor is not treated or treatment is significantly delayed, it can lead to death.

Sex Work: Food insecurity is associated with risky sexual behaviours, leading to an increased risk for HIV transmission. In Eswatini food insecure women were found to be more likely to engage in sex work to raise money. Eswatini already has the highest HIV prevalence in the world (27% infected).

Question 10

Describe the possible solutions to food shortages in Eswatini

Answer 10

Measures to increase crop outputs: For the last few years, the UN’s World Food Programme and other organisations have been moving away from distributing food aid towards programmes that encourage self-sufficient food production instead.

World Food Programme actions have included:
- Clearing land to tap into more agricultural potential.
- Developing irrigation infrastructure such as canals, ponds and wells.
- Building and rehabilitating community infrastructure like low-cost housing, schools, storage facilities, aggregation centres and toilets.
- Improving access to markets by building/rehabilitating feeder roads.

Food Aid:
-Organisations such as the UN’s World Food Programme have supplied food aid directly during emergency situations.
-The World Food Programme addresses vulnerable people’s immediate food needs with cash or food transfers while supporting the development or rehabilitation of assets that enhance the resilience of communities. For example, in 2020 the World Food Programme received a $425,000 donation from the EU to help meet the needs of 54,000 vulnerable Swazi households through cash transfers. Monthly cash transfers will be delivered via a mobile money platform. The money can then be used to purchase food items at selected stores that are owned and operated by local retailers, which in turn helps boost the local market.

The UN World Food Programme (WFP) fed more than 200,000 people in the aftermath of the 2016 droughts.

Question 11

Explain the inputs of hi-tech industry in the Cambridge Science Park

Answer 11

1. Knowledge: Links to Cambridge University (established by Trinity College in 1971) – knowledge as an input.
2. Capital – huge amounts needed. In 2018 the science park development body of Tsinghua University in Beijing, announced plans to inject over £200million into a new phase of renewal and investment in Cambridge Science Park.
3. A highly qualified labour force.

Question 12

Explain the processes and outputs of hi-tech industry in the Cambridge Science Park

Answer 12

1. A high degree of research and development is involved (e.g. AstraZeneca and Cancer Research UK are working together to discover and develop novel biologics to treat cancer).
2. The manufacturing process is highly automated and computerised.

Outputs: Pharmaceuticals, medical, optical and other precision instruments, computers. Biotechnology companies develop new kinds of food, drink and vaccines.

Question 13

Why is the Cambridge Science Park located in Cambrdige?

Answer 13

Accessibility: The city has good road links to London (M11) and to East Anglia’s ports (A45), as well as to the Midlands and the North. It is close to London’s third airport at Stansted and has access to Gatwick and Heathrow airports via the M25. There is a fast, direct rail link to London.

Links to universities: Cambridge University has a long history of scientific achievements. Industries can therefore draw on the research and scientific knowledge of many experts. Cambridge University is consistently ranked in the world top 10 and the UK top 2.

Pleasant environment: Hi-tech industries need to attract a highly skilled workforce, so they often locate in areas with a pleasant living and working environment. To attract workers, Cambridge Science Park has its own fitness club and gym and an onsite nursery. The park has low density of buildings to create a peaceful and serene environment. The 152 acre site benefits from 20 acres of park style landscaping which provides a central area of lakes, natural habitat, mature trees, shrubs and extensive grassed areas. No building is permitted in this protected area.

Question 14

Explain the inputs of Nissan’s Motor Manufacturing in Sunderland

Answer 14

Capital (money) and Government Incentives: Nissan has set out plans for a £1bn electric vehicle hub in Sunderland to extend its factory further. The UK government is alleged to be contributing £100 million to the mix.

Components: Canadian TNC Magna provides the exterior trim parts for Nissan’s cars in Sunderland. This includes bumpers, window/door seals and headlights.

Aluminium and Steel: The new Nissan Qashqai uses a significant number of lightweight aluminium panels and steel.

Energy: 20% of the factory’s energy comes from onsite renewable energy sources in the form of wind turbines and solar power.

Question 15

Explain the processes involved in Nissan’s Motor Manufacturing in Sunderland

Answer 15

Pressing – Steel and aluminium pressing is the first process in assembling at the Nissan factory. This is when steel sheets are shaped into the outer and inner body panels of the vehicle. NMUK houses a 5,000 tonne press capable of pressing two panels simultaneously – one of only two in use in any Nissan plant.

Welding - Welding is a highly automated section of the factory with over 500 robots in operation. Pressed-panels are welded together to create complete body shells.

Painting - Over £10m has been invested into the Paint Shop. The body shells are painted using solvent-based pain. They are immersed in an anti-corrosion paint dip called Electrocoat Dip. This ‘dip’ coats the entire body, both inside and outside.

Question 16

Explain the outputs of Nissan’s Motor Manufacturing in Sunderland

Answer 16

Cars: Since 1986, the factory has produced over 10 million cars. It produces more than 500,000 cars a year.

Waste: Car production produces waste such as scrap aluminium and carbon dioxide emissions. Nissan recycles the scrap aluminium which saves more than 90% of the energy needed to create a comparable amount from raw materials.

Question 17

Explain why Nissan’s Motor Manufacturing is located in Sunderland

Answer 17

Government incentives: In 1984, Nissan and the UK government signed an agreement to build a car plant. An 3km2 greenfield site in Sunderland was chosen. As an incentive the land was offered to Nissan at agricultural prices – around £1800 per acre.

Labour: The North East region of England had recently undergone a period of deindustrialisation, with the closure of most of the shipyards and coal mines. The high unemployment meant Nissan had a large, manufacturing-skilled workforce to draw upon.

Transport Links: The site is close to ports on the Wear and Tyne rivers and within easy driving distance of Newcastle International Airport. It is also close to major roads such as the A1 and A19.

Energy: 20% of the factory’s energy comes from onsite renewable energy sources in the form of wind turbines and solar power.

Land: Nissan acquired a vast area of greenfield land – 3km2 – meaning it has had space to expand. This land is also flat being on the flood plain of the River Wear.

Markets: In the UK, Nissan had a large market to sell to. Of the one million Nissan cars sold in the UK, 93% were made at the company’s Sunderland plants.

Question 18

Describe the human factors attracting tourists to Jamaica

Answer 18

Food: From jerk to patties, Jamaica is a destination for foodies.

Culture: Jamaican culture is a product of the interaction between Europe and Africa It is the cultural capital of the Caribbean. It is the birth place of reggae.

Montego Bay: A major cruise ship port with numerous beach resorts and golf courses. It is home to an amusement park.

Question 19

Describe the physical factors attracting tourists to Jamaica

Answer 19

-Climate: Tropical climate. Average of 25 degrees Celsius. Average of 10 hours of sunlight a day.

Nature: Ranks 5th among the world islands in terms of endemic life. There are 28 species of birds that are only found in Jamaica.

Natural beauty: Home to Dunn’s river falls and more than 200 miles of pristine beaches.

Question 20

Explain the positive impacts of tourism in Jamaica

Answer 20

Revenue: Tourism brings in a lot of money for Jamaica – about 35% of its GDP in 2019. Tourists spend over $2bn each year.

Employment: 220,000 Jamaicans work in tourism – it is a vital employer. Tourism has a positive multiplier effect with people spending money in many different areas. These workers pay taxes which helps Jamaica to develop.

Ecotourism is becoming more popular in Jamaica. An example of a popular ecotourism attraction in Jamaica is the National park, called the Blue and John Crow Mountains. The environment is protected because nature reserves and eco-lodges are built. The park accounts for 4.5% of Jamaica’s land surface.

Question 21

Explain the negative impacts of tourism in Jamaica

Answer 21

Environmental degradation: Coral reefs, have seen the threat to their existence increased not only by climate change but also the anchors of cruise ships. In Jamaica, the coral reefs now only have between 5% and 10% of their coral left alive.

Overreliance on tourism: Since the global pandemic hit, services industries, like hotels, have been hard hit. 50,000 employees directly employed in the tourism sector have been laid off. Many of the jobs were also seasonal.

Water use: One study found that the average tourist in Jamaica uses between 645 and 2,086 litres of water per night, compared with between 95 and 729 litres per tourist per night in the United Kingdom.

Question 22

Explain how the negative impacts of tourism are managed sustainably in Jamaica

Answer 22

Preventing environmental degradation: Ecotourism is becoming more popular in Jamaica. An example of a popular ecotourism attraction in Jamaica is the National park, called the Blue and John Crow Mountains. The environment is protected because nature reserves and eco-lodges are built. The park accounts for 4.5% of Jamaica’s land surface. Entry fees are $10 for adults in national parks to allow the preservation of local wildlife.

Preventing economic leakage: Big up Small Business is a TUI Care Foundation project, delivered by the Travel Foundation (an independent charity) that is creating new opportunities for up to 150 small-business entrepreneurs in Jamaica, so that more people can benefit from tourism. Small businesses are receiving training to improve their business and better understand international market requirements.

Marine damage: The Negril Marine Park nature reserve was established in 1998 to help preserve sea life that tourist snorkelers and divers want to see such as coral reefs. The Park covers a total area of approximately 160 km2. The park is managed through enforcement of the Marine Park Regulations with ranger patrols and zoning.

Question 23

Describe and explain the location and importance of natural gas in Germany

Answer 23

Importance: Natural gas is the second most important primary energy source in Germany’s energy mix. In 2020, it accounted for 26.6% of the primary energy mix. However, Germany is dependent on other nations for its supply.

Location: Much of Germany’s gas is provided by the Nord Stream pipeline. It is a pipeline through the Baltic Sea. In 2018, imports accounted for about 97% of total natural gas supply. About half of Germany’s total natural gas imports came from Russia in 2019, and Norway and the Netherlands supplied a bit more than 20 percent each.

Question 24

Describe and explain the location and importance of coal in Germany

Answer 24

Importance: Coal accounted for 15.7% of its energy mix in 2020. Germany has reserves of two types of coal – lignite and bituminous coal. Lignite (brown coal) contains less carbon, gives out less heat when burned, produces more ash, and causes more air pollution. It is extracted in Nordrhein-Westfalen and Sachsen (in western Germany) and Brandenburg (in eastern Germany). Bituminous coal is more carbon-rich and generally of better quality. It is mined in Nordrhein-Westfalen (the Ruhr Coalfield) and Saarland.

Locational factors: The lignite power stations are located close to the coal-mining areas. The Schwarze Pumpe power station is one example. Transporting lignite over long distances is not economic, because of its low purity. The bituminous coal power stations are partly located on the coalfields, to save transport costs (e.g. the Scholven power station), but they are also more widely located throughout the country. The power stations on the coast and on navigable rivers (e.g. the Rostock Power Station) use imported coal.

Question 25

Describe and explain the location and importance of wind power in Germany

Answer 25

The Energiewende policy is the ongoing transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply.

Importance: Germany has the biggest wind energy capacity in Europe. Wind power is the second most important renewable energy source in Germany’s energy mix. In 2020, it accounted for 4.1% of Germany’s total primary energy mix.

Location: The vast majority of Germany’s offshore turbines are located in the North Sea, with about 1,230 spinning off Germany’s western coast, compared to just over 230 in the Baltic Sea in the East. Wind yields on average are much higher in the North Sea than in the Baltic. Onshore wind capacity is highest in the state of Lower Saxony. The largest capacity wind farm is located here – the Holtriem wind farm.

Question 26

Explain the human and natural factors contributing to water shortages in China

Answer 26

-Seasonal rainfall: China has seasonal imbalances: between 60-80% of annual rainfall comes in summer during the three months of the wet season.

Pollution: China’s water supply has been contaminated by the dumping of toxic human and industrial waste. 80% of the water from China’s rivers is not fit for human consumption.

Population: Home to 20% of the global population, China has only 6% of the world’s total freshwater resources.

Drought: Abnormally dry weather has been experienced by Beijing in recent years - between October 2017 and February 2018, no precipitation, including rain and snow, was recorded in the metropolis. The 116-day drought is unprecedented in the country’s record.

Question 27

Describe the methods of water supply used in China

Answer 27

Desalination plants: China currently has 140 desalination plants which supply water-stressed cities such as Tianjin. These produce 1.65 million tonnes of water each day.

Wells: In Shanghai, 50 wells have been dug 240 m deep beneath large residential areas and universities. The water from these wells will be used when there are acute water shortages in the city.

Water Transfer Schemes: The South-North Water Transfer Project aims to transfer significant quantities of water from China’s ‘surplus’ south to the arid ‘deficit’ north.
The US$80 billion scheme was launched in 2002. The scheme moves water along three distinct routes. It is the largest water diversion/transfer project ever undertaken.
The Eastern route is 1,155km long and was completed in 2013. It provides water from the Yangtze river to Shandong Province (including Tianjin) and other areas to be used for domestic and industrial use. Around 1 billion cubic meters of water is transferred each year.

Question 28

Describe how future water supplies are being ensured in China

Answer 28

Desalination plants are being built on China’s coastline to provide water for cities in the north and east. China currently has 140 desalination plants which supply water-stressed cities such as Tianjin. These produce 1.65 million tonnes of water each day. China will invest in new desalination plants over the 2021-2025 period and raise capacity to 2.9 million tonnes a day.

Water Transfer Schemes: The South-North Water Transfer Project aims to transfer significant quantities of water from China’s ‘surplus’ south to the arid ‘deficit’ north. The US$80 billion scheme was launched in 2002. The scheme moves water along three distinct routes. It is the largest water diversion/transfer project ever undertaken. The eastern route transfers around 1 billion cubic meters of water each year. Construction of the western route will be completed in 2050. The project should stop the over-abstraction of groundwater and supply more water to industry, cities, and China’s agricultural region in the north.

Water Efficiency Regulation: Recent plans (2011) have focused also on managing China’s water more sustainably. This includes environmental protection legislation for removing pollution, enforcing efficiency measures in industry and agriculture and monitoring water use to ensure water laws are obeyed. Progress has already been impressive: strict new rules on water consumption meant that by 2014, industry was using one-quarter less water than in 2010 and irrigation efficiency was more than 50%.

Question 29

Describe the impact of tourism on the global and local natural environment in Jamaica

Answer 29

Over abstraction: One study found that the average tourist in Jamaica uses between 645 and 2,086 litres of water per night. This is leading to unsustainable abstraction of ground water with a current water shortfall at 126 million cubic meters per year.

Deforestation: Overall more than 75% of the original forest of Jamaica has been lost. This is partly due to clearing land for tourist industries such as hotels and water parks.

Carbon Emissions: The UK was the third highest country of origin for tourists in Jamaica in 2020. A return flight from Heathrow to Sangster International Airport releases around 2 tonnes of CO2 emissions per person. This is equivalent to the average CO2 emissions of a petrol car for one year.

Global Biodiversity: Endangered species in Jamaica include the tundra peregrine falcon and the green sea turtle. Tourist development threatens the habitat of these animals and this also contributes to a global decline in biodiversity.

Question 30

Describe the impact of tourism on local people in Jamaica

Answer 30

Clearing Mangroves: Clearing mangroves along the coast to develop tourism (e.g. building hotels) has led to beach erosion. The Forestry’s Land Use Assessment between 1998 and 2013, found that mangroves and swamps had depleted by 98% in Jamaica. Mangroves were found to reduce wave height in Jamaica between 36% and 55% - the loss of mangroves threatens coastal areas with inundation, putting housing at risk.

Damage to Coral Reefs: Coral reefs, have seen the threat to their existence increased not only by climate change but also the anchors of cruise ships. In Jamaica, the coral reefs now only have between 5% and 10% of their coral left alive. This also impacts local fishers – the destruction of coral reef ecosystem has meant that catches have significantly declined in recent decades.

Water Pollution: Coastal waters have been heavily polluted by sewage from Jamaica’s hotels in tourist hubs such as Montego Bay. This further threatens the coral reefs of Jamaica as sediment and other pollutants smother coral reefs and speed the growth of damaging algae. It also threatens the livelihood of fishers who rely on coastal waters as their source of income.

Question 31

Explain attempts at sustainably managing the economic development in Jamaica

Answer 31

Ecotourism and National Parks: An example of a popular ecotourism attraction in is the National park, called the Blue and John Crow Mountains. The environment is protected because nature reserves and eco-lodges are built. The park accounts for 4.5% of Jamaica’s land surface. Entry fees are $10 for adults in national parks to allow the preservation of local wildlife.

Marine Park: The Negril Marine Park nature reserve was established in 1998 to help preserve sea life that tourist snorkelers want to see such as coral reefs. The Park covers a total area of approximately 160 km2. The park is managed through enforcement of the Marine Park Regulations with ranger patrols and zoning.

Reducing Water Pollution: A water treatment plant was built at Logwood, a town in Jamaica, to limit pollution from Negril’s hotels.

Reducing Plastic Pollution: Jamaica introduced a ban on single-use plastic bags, plastic straws and Styrofoam in a bid to reduce the impact plastic is having on the environment. Plastic pollution results in flooding as it piles up in waterways as well as damage to coastal and marine ecosystems.