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4.

LOCATION OF ECONOMIC ACTIVITY

4.1 LOCATION OF ECONOMIC ACTIVITY : What do we mean by the term Economic Activity ? Well, it means the activities related to production, exchange and consumption of goods, services and information on the rotating earth and in universe. These activities take place in the context of some geographical location on the earths surface and outer space. The location where these activities take place is called the location of economic activity. The economic activity may be related to any one or all the three aspects, i.e., production, exchange and consumption. 4.2 LOCATION OF PRIMARY, SECONDARY , TERTIARY , QUATERNARY AND
QUINARY PRODUCTION :

First of all, lets know the types of production economic activities. Hartshorne and Alexander have given five broad categories of production economic activities as follows : (i) (ii) (iii) (iv) (v) (i) Primary Secondary Tertiary Quaternary Quinary PRIMARY PRODUCTION : It includes hunting, fishing, gathering, mineral extraction, and harvesting of trees. This is called red collar activity. (ii) SECONDARY PRODUCTION : It includes those activities which increase the value or usefulness of a previously existing product by changing its form. It includes

manufacturing and commercial agriculture. It is called blue collared activity. (iii) TERTIARY PRODUCTION : It includes the service sector rather than the goods. It includes personal and business services provided by retail clerks, barbers, beauticians, and secretaries. It is called pink-collared activity.

(iv)

QUATERNARY PRODUCTION : It includes professional and administrative services characterised by specialised technical, communication, motivation, and leadership skills provided in specialised environment like schools, theatres, hotels, hospitals. It includes financial and health service, information processing, teaching, government service, and entertainment activities. It is called white collar activity.

(v)

QUINARY PRODUCTION : It includes chief executive officers and top management executives both in government and private sectors. It is characterised by a very high degree of analytical and managerial activities in larger urban ,university, medical and research centres. It includes research scientists, legal authorities, financial advisers, strategic planning and problem solving professional consultants. It is called gold collar activity.

1.

Flow chart showing increasing order of complexity and specialised nature of economic production activity.

Primary

Secondary

Tertiary

Quaternary

Quinary

2.

Graphical Hypothetical simplified Representation of the complexity and specialisation involved in different productions : Y

10 9 8 7 6 5 4 3 2 1 0

. . . . . . . . . . . .

. . . .

Degree of Complexity and Specialization

Primary Secondary Tertiary Quaternary Quinary

3.

LOCATION : Location of primary, secondary and tertiary production is determined by numerous factors like historical, cultural and physical. Different theories have been advanced by different economists and geographers to explain this phenomenon of location of production activity. Von Thonens model tries to explain the location of primary activities. Alfred Wabers model tries to explain the location of industrial units or the secondary production. Walter Christallers theory tries to explain the location of tertiary production like retail business activity. No theory is perfect or Universally valid. It is to be noted that primary activities can be undertaken on a commercial basis, too., for example, primitive people carry out subsistence type of primary activities ,whereas modern human beings especially Europeans have undertaken these

activities like fishing and forestry on a commercial basis with the help of modern scientific and technical knowledge and gadgets.

4.3 VON THUNENS MODEL


1. INTRODUCITON: J.H. Von Thunen, himself a prosperous and successful owner/manager of a large estate in
Mecklenburg made an attempt to explain agricultural land use pattern in economic terms by publishing Der Isolierte Staat (The Isolated State) in 1826 based partly on his observations in that locality. His attempt/model called Von Thunens Isolated State

model is an example of a normative model and is partly based upon empirical evidence
relating to the economic conditions in the early 19TH century.

2. ASSUMPTIONS :
Like all other theorists, he made certain assumptions, too for the sake of simplicity like: i. ii. Isotropic surface within the isolated state. All surplus production was sold in a single city upon which all communications converged. iii. iv. v. vi. Use of a single form of transport (horse-drawn carts) Direct proportional relation of transport costs to distance. Concentric zones of differing production and the city. Presence of a hypothetical area called an isolated state, surrounded by an uncultivated wilderness and having no trade connections with outside areas. vii. Existence of a rational human being.

3. EXPLANATION:
A. Von Thunen argues that 3 factors influence the type of agricultural production at any particular locations i. ii. iii. Distance to market. Selling price of product at the market. Land rent, which is regularly equivalent to economic rent in classical economics described earlier in 1817 by British economist David Ricardo. Economic rent is the revenue a farmer receives after deducting the cost of production of a commodity or it is the monetary return from an area which can be obtained above that which can be received from land which is at the margin of production.

B. According to Von thunen ,perishable items in strong demand and those products with high transportation costs get located close to the city. These items could compete favourably on higher priced land near centre because of higher market prices. Less perishable products with lower transport costs and lower market prices predominate with increasing distance from the market. Extensive agriculture, including grazing, replaced more intensive grain production and general farming in most distant remote locations. However, distortations crop up in this highly idealized model. For example, in figure (b), presence of a navigable river and a second market centre has distorted the model which calls for further investigations into the reasons responsible for this deviation. A. The following diagram shows Von Thunens concept of economic rent: X

Y Price for one hectare of production A 0 (City) B C

Distance from 0 increase

Von thunen assumed that quality of land varies not with fertility, but with respect to location or distance. The land is assumed to be of uniform fertility and crop yields equal in all areas, but the return on agricultural produce (XY) declines with increasing distance from the city (0) due to the grater cost of transporting crops to the market. In the figure above, the shaded portion means the economic rent of A and B if the next distant location is farmed.

4. APPLICATION: A bid rent curve clearly shows the relationship between economic rent and distance from the market for one or several products. The basis for rings of production around the market can be determined by comparing the bid-rent curves for two products. The bid rent curve is the line showing the economic return at varying distance from the market. It slopes down to the right for each product, since additional transport costs occur with greater distance from the market. For example, item located at the market would cause no transportation costs. Economic rent would decrease in direct proportion to transportation costs - increases at any given distance away from the market. We can find the height of the curve at any distance by subtracting production and transportation costs from the price received for the item at the market. Figure (a) shows the economic rent return from a ton of Bajra at the market as Rupees 100. We can determine this figure by subtracting the cost of production (Rupees 100) from the selling price at the market (Rupees 200), yielding an economic rent of Rupees 100. The rent decreases in direct proportion to the transportation charge at any distance from the market. Let us assume that transportation costs are Rupees 20 per kilometer. 2 kilometer from the market, an additional Rupees 40 decrease in rent occurs .we are therefore left with a return of Rupees 60 only.

150 Economic Rent (Rupees) 100 50 Bajra

Market (Pune)

2 Kilometre

Figure (a)

150 Economic Rent (Rupees) Cauliflower 100 60 50 Market 0


(Pune)

Bajra 2 3 5 Kilometre Bajra Zone Cauliflower Zone Figure (b)

At 5 Km, with an additional transport charge of Rupees 60, the rent becomes zero, making it uneconomical to produce Bajra at any greater distance from the market, where returns would become negative. Production area would contract/expand with any increase/decrease in the market prices or any charges in transportation cost. The bid-rent curve would become steeper and contract the production area with increase in transportation costs. The curve would be flattened with a decrease in rates, encouraging production at greater distances. Figure (b) helps find the basis for rings of production around the market (Pune). It shows a bid-rent line for two products Bajra and Cauliflower. The curve for Cauliflower starts out in a higher position than the Bajra curve because its market price is significantly higher than that for Bajra (Rs. 260), more than offsetting the increased cost of

production (Rs. 110). A return of Rupees 150 is found at the market. Transportation costs for Cauliflower is higher than that for Bajra. 2 Kilometer from the market, Rupees 90 is the transportation charges, leaving economic rent at Rupees 60. At 5 Kilometer from the market, another Rupees 135 charge occurs, with rent level going below zero! When these points are connected, it is seen that it is uneconomical to produce cauliflower beyond 2 Kilometer from Pune market, because at greater distances Bajra becomes more profitable. The highest return would be given by the curve in top position at any given distance from the market. Thus, cauliflower would be produced closest to the Pune market and Bajra farther away.

5. CRITICISM: a. NEGATIVE: (i) Von thunen simply re-invented the wheel, because his concept of land rent is quite similar to economic rent model of David Ricardo who had described the same 9 years before Von thunen put forward his concept. Of course, Von thunen himself was unaware of Ricardos economic rent concept. Instead of basing his model on soil infertility, he assumed equal fertility and based it on location or distance. One can see similarity between Ricardo & Thunens models from the following concept of Ricardo of economic rent based on the assumption of declining soil fertility with increasing distance from the city.

2.0 1.5 Yield (tonne per hectare) 1.0 0.5

A City 0

Quality of land decrease

A is an area of cultivation close to a city (0). The yield for a given crop is 2.0 tonnes per hectare. With the expansion of city and its market for products, cultivation gets extended to area B, which is located further away from the city and is considered having a lower fertility. The yield is 1.5 at location B. So, the economic rent of A is 0.5 tonnes per hectare (2.0 -1 .5 = 0.5).

When area C is put under agricultural production, and yield 1.0 tonne per hectare, then the economic rent of A and B would be 1.0 (2.0 respectively. (ii) (iii) His assumptions are not universally true. His model is anachronistic, outdated, irrelevant to contemporary economic spatial scenario. (iv) (v) (vi) All operators, i.e., agriculturists dont have complete information. All operators are not necessarily rational decision makers. All operators differ in their evaluation of the land and the definition of remuneration for their work. (vii) All operators need not necessarily make rational choices of crops, live stock. (viii) All operators need not seek to maximize their return from their lands. (ix) (x) All the above factors distort symmetry of the model. Model is applicable only mainly to commercial agricultural patterns found in North America and Western Europe. (xi) Forests belts are no more so important as to warrant proximity to a city in view of technological advancements in the field of energy generation. (xii) Being a normative model, it suffers from all the shortcomings of such models. (xiii) Changes in transportation/refrigeration have destroyed the symmetry of land use systems around central markets, since the early 19TH century. B. POSITIVE: 1. It was one of the earliest pioneering approach which attempted to explain agricultural land use patterns in economic sense. 2. 3. It helped put geography on a sound scientific footing. Von Thunen himself pointed out that his work was essentially a method of approach to the complex subject of agricultural location and that while his findings had no claim to universality, the methods by which they were obtained could be applied generally. 1.0 = 1.0) and 0.5(2.0 1.5 = 0.5)

4.

The model is applicable at all scales, i.e.,

local, regional or global (as M.

Chishdin pointed out). Study was done in Uruguay applying this model to agriculture. 5. 6. Shortcomings of the model prompted newer theories to solve the question of decision making at the level of the individual farmer like Game Theory. CONCLUSION: To conclude in the words of J.R.Peet, While transport costs continue to form a major part of the total costs of producing and marketing crops, at least some semblance of a concentric zonal system remains.

4.4 ALFRED WEBERS MODEL 1. INTRODUCTION:


Alfred Weber attempted in 1909 to develop a theory based on least cost with respect to transport ( collection of raw materials and distribution of finished products ) and processing (labour, power, capital, services ) assuming that the manufacturer would best locate where the sum total of these cost is least . To find the least cost location ,it is necessary to examine spatial variation in this cost and to examine the cost structures of different industries, because a location with low labour cost will not be very attractive to an industry with a small labour cost component such as oil refining and an area with high labour costs and cheap power will not attract industries with a high labour, low power component such as textiles. Alfred Weber tried to find this spatial point of least cost . His model tries to explain the location of secondary production. 2) ASSUMPTIONS:Alfred Weber, inter alia, assumed uniform demand for a product at all locations, resulting in a uniform price; presence of an isotropic surface, a rational well informed human being, perfect competition; and therefore the plant located at the point of least costs would get the highest profits. Occurrence of raw materials/ labour/markets at specific places only, and immobility of labour supply available unlimited at aspecific wage level. 3) PRINCIPLES:He examined one by one the following: (i) Least Transport Costs (ii) Labour Costs (iii) Tendency to Agglomerate. LEAST TRANSPORT COST:He tried to find first the least transport cost location which he considered the most important influence,using a locational triangle.

(i)

1 Tonne 2 Tonne

C 2 Tonne P 1 Tonne M2

P M1 a. Weight losing industryindustry M2 M1 b. Weight gaining industry

Reality is simplified to two raw materials M1 and M2 and one common consumption point C. The least transport cost point P, is the point at which the total cost of moving raw material and finished products is least. These transport costs are calculated by multiplying the weight of material or product by the distance carried, resulting in a pull being exerted on the production point by each of the corners of the triangle. In the above figure(a), 2 tonne of material M1 and 2 tonne of material M2 are needed to produce 1 tonne of finished product. In a weight-losing manufacturing process such as iron smelting, the least transport cost location is near to the sources of the raw material. But, in figure(b), one tonne of material M, and1 tonne of material M2 are needed to produce 2 tonnes of finished goods. In a weight losing industry such as backing a market oriented location is attractive. The only raw materials that are localised and not ubiquitous will have a locational effect. (ii) LABOUR COSTS:He considered that industries would be located away from the point of least transport costs to the point of least labour costs if savings in labour costs were greater than any additional transports costs. In the following figure (c), P is the least transport cost point, and around this point a series of isodapanes (cost contours) or lines of equal transport cost per unit of production from P are drawn. Cheap labour at L1 & L2 would reduce costs by 15p per unit of production, and manufacturer has to decide whether it is useful to relocate from P to take advantage of it. Surely, any location within the 15p transport isodapane would save more on labour than would be spent on extra transport and therefore L1 would be a more profitable location than P. Location at L2 would increase transport costs more than any saving in labour costs. With efficient transport, labour costs rise and transport isodapanes move further apart. (iii) TENDENCY TO AGGLOMERATE:-

After combining transport and labour effect, he examined the effects of industrys tendency to agglomerate. In figure(d), A,B,C,D, and E are least cost location , but

industrial units located there could cut their production costs by 1 per unit of production if at least 3 of them operated in the same location. But they must not incur increased transports cost of over 1 per unit of production. Figure(d) shows the critical isodapane of 1 drawn round each producer and it also shows that units C,D,E could reduce their total costs by locating in the shaded portion/area. Same is for C,D,A and ABD.

4)

CRITICISM:(i) POSITIVE:(a) Webers model has validated in several studies like W. Isards work on the US steel industry and W. Smiths work on weightlosing industries in Britain. (b) (c) (d) It is a pioneering theory. It has influenced a large number of later writers. It gave rise to Maximum Revenue theory as a reaction to its neglect of the demand aspect . (e) It shows that intermediate plant locations between the raw material and market locations are undesirable because they induce higher costs of production due to the effect of increased freight rate charges. (f) More realistic behavioral and structural theories have come in vogue to supplement this classical theory like spatial Margins theory combining both the production and the demand aspects. (ii) NEGATIVE:a) It holds demand constant at a point. It ignores the locational interdependence of units. b) c) d) It is too abstract, and emphasizes economics instead of space. It has obvious limitations.It is deterministic .It fixes location. Presence of an isotropic surface, rational human being, full knowledge, perfect competition are a fallacy. e) f) It ignores MNCs creating their own markets/infrastructure. It helped capitalists maximize their profits and exploit the labour class cold bloodedly. g) Weber did not discuss variations according to the stage of production, i.e., raw material and final product transfer costs. Hoover noted that the raw material shipmant rates often fell below those of finished goods due to increased fragility and higher packing and hanling costs for manufactured items.

h)

He failed to acknowledge the advantage of break of bulk location advantage.

i)

He failed to recognise various systems like capitalism/socialism and other similar differences.

j)

He ignored disadvantages of agglomeration like space problem, energy crisis, etc.

1.

CONCLUSION: To conclude in the words of KNOWLES AND WAREING, His assumptions about transportation rates and the effect of agglomeration have been questioned, but the theory is important because of its pioneering nature and its effects on later writers.

SOME ADDITIONAL POINTS: 1. A. Weber propounded his views in a book titled Theory of the location of industries translation of 1909 original edition in German. 2. He distinguished between 2 types of materials to determine minimum cost locations: (A) {i} (ii) (B) (i) weight losing (gross materials) Non Weight losing (Pure Materials). Localized Material(Restricted availability) Example : Location: (ii) Mineral processing activity. (Near Raw Material.)

Ubiquitous Material (Available everywhere) Example : Locally produced limestone for cement

manufacturing. Location: (Near Market).

3.Example of contemporary firms primarily having either raw material or market locations.

Market Orientation Perishable

Bulk yyy Automobile assembly, Furniture Lumber, Pulp, Mills, Plywood, Veneer Bulk y

Baking Beer and Soft drink Bottling

Weight Gain

Copper, Rice and Sugar beets Canning and Freezing Weight Gain

Perishable Raw Material Orientation

4.5

WALTER CHRISTALLERS CENTRAL PLACE THEORY

1. INTRODUCTION: Walter Christaller in 1933 developed his central place theory based on observations concerning settlement patterns and functions in Bavaria , with a view to discovering order in the spacing of population clusters and settlements in the landscape. It is assumed that since there is a degree of order in the relationship between size and ranking of settlements in any region, there may also be some logic in the distribution or spacing of settlements of different sizes and functional importance. However, this theory does not apply to any manufacturing economic activity. To quote Hartshorne and Alexander (economic geography) , This theory does not apply to manufacturing or other specialized activity, but to those functions that occur in central places in response to the needs of the hinterland market, such as retail goods, banking, and professional services these activities occur in town of various sizes due to the size of the market or trade area covered. 2. ASSUMPTIONS : A. EXPLICIT : 1. Isotropic(even)surface. 2. An economy based on providing goods and services to the surrounding population and not on the production of primary or secondary products. 3. Even distribution of population on the isotropic plane. 4. Equal ease and opportunity of movement in all directions. 5. Single means of transport and transport costs being directly proportional to distance. 6. Location of service center in the centre of the area served. 7. Visit of nearest Central Place by consumers to minimise travel distance. (i.e, principle of least effort). 8. Same income and demand for goods/services. 9. Economic men : suppliers try to maximise their profits by locating in the place where its possible to cover maximum possible area of consumers. 10. Central place is not necessarily central in geometric sense.

11. Central places are points of settlement. B. IMPLICIT. 1. Dependence of the population size on the goods/services offered.

2. Offering of all goods & services of the lower order center by the higher order central place. 3. Operating of a minimum number of central places in a systems. 4. Existence of complete information and perfect competition. 5. Closed Systems nature of central place hierarchy because each center serves only its immediate hinterlands. It does not interact with any outside regions like national or international regions. 6. It is deductive and deterministic, since it deduces conclusions and fixes the place of a centre and its function. 7. Central places existence as a dimension less point. 8. Serving of hinterland by a central place but non-serving itself or its own needs! 9. Higher order goods have longer ranges. 3. IMPORTANT CONCEPTS :Concepts like Range of a good, Threshold, Desire lines , Order , economic reach help us understand Christallens Central place theory. 4. WORKING OF CENTRAL PLACE HIERARCHY. LEVEL OF CENTRE Types of goods and services SHOPPERS Metropolitan Centre Regional City City Town Village Hamlet X X X X X X CONVENIENCE X X X X X X X X X X X X X X X X X X X X X X X X X X X

X = A Centre of the specified level provides goods and services of this order. Each higher order centre provides services of lower order centres, too.

5.

EXAMPLES OF FUNCTIONS IN CENTRAL PLACES OF VARYING SIZES.

1.

HAMLET : Grocery, Church,gasoline service station.

2. VILLAGE : Barber shop, Bank. 3. TOWN: Furniture store, Clothing store. 4. CITY: Shoe store, Jewellery store, Florist, Hospital. REGIONAL CITY : Administrate Government functions. METROPOLITIAN : International Banking, Finance.

6.

PRINCIPLE OF CHRISTALLERS THEORY :-

Christaller chose the hexagon as the ideal trade area shape because it closely approximates the qualities of a circle (all areas on boundary are equal distance from the centre) and avoids the problem of underlap or overlap as shown below :He was of the view that the Hexagon would be a more efficient shapes to include all the surrounding regions/space in one unique trade area and to avoid the problem for each size of community of overlap or underlap. So trade areas for each size of community appear as hexagons instead of circles.

THE THEORITICAL BASIS OF CHRISTALLERS CENTRAL.PLACE NETWORK :-

A. First , populations to settle in the region would be agricultural. Families would tend to settle in groups and small, largely self sufficient hamlets would be established in the landscape. However, to buy, sell or exchange goods people have to travel to the nearest trading centre or hamlets (villages) and villagers in turn have to look up to higher order towns for higher order goods and services. B. There are 3 ways of developing this hexagonal network :a. Market Principle b. Traffic Principle (K=3) (K=4)

c. Administrative Principle ( K = 7 ) Here K means the number of areas served by a Central place including its own, i.e., K = 3 means Central place + two other equivalent central places. K = 4 means Central place + 3 other equivalent central places. K = 7 means Central place + 6 other equivalent central places. Here equivalent central places means the consumer populations of the central places. C. (I) Market Principle ( K = 3 ). Here , the routes which link the higher order center do not pass through the lower order centres. Consumers divide into 3 equal groups when shopping in the 3 nearest largest

places. Three largest nearest places , because they can approach only 3 largest centres equal in importance and equidistant. Each of this lower order consumer group is located on the each points of hexagon. This would minimise travelling to the next higher order central place. Each higher central place has six surrounding points .1/3 rds populations of each these points can be taken to visit it. So, 1/3rd of populations from 6 points is equal to 1/3*6=2 Full populations or 2 equal size places. Thus, it serves the populations equal to

populations of 2 such places plus its own, i.e ,1+2 = 3 central places. Thus each higher order serves 3 centres including itself and dominates two centres (lower order). This chain continues down. There exists only one highest order central and the number of centres at every level below it increases by a factor of 3. This K = 3 network would develop where the lower order settlements had to be as near as possible to the higher order central places. A central Place Systems Organized according to Christallers Marketing Principle. Level of Hierarchy Equivalent Number of Central Places dominated by the highest order central place Metropolis City Town Village Hamlet 1 2 6 18 54 Equivalent Number of Market areas dominated by the highest order central place 1 3 9 27 81

ii. TRAFFIC PRINCIPLE (K = 4) In marketing principle, the routes linking highest order centers do not pass through lower order centers, thereby leading to inefficient transportation Network. In traffic principle, central places are so located that lower order centers lie along the straight line paths between higher order centres.

Here, smaller lower order places divide into two equal parts, that is when shopping in the 2 nearest larger cenral places.

Each higher order serves a population equivalent to population of 3 similar size central places. For example *6 (points) = 3.

Thus, it dominates 3 lower order centres and serves 4 similar size centres including its own self. This chain continues down the hierarchy.

A central place system organised according to Christallers is Transport Principle: Level of Hierarchy Equivalent Number of Central Places dominated by the highest order central place Metropolis City Town Village Hamlet 1 3 12 48 192 Equivalent Number of Market areas dominated by the highest order central place 1 4 16 64 256

Here, in this principle , the number of settlements are maximised along the straight lines to facilitate efficient transportation.

This hierarchy would develop in regions where transport costs are more important, because it maximises the number of central places on straight line routes.

III.

ADMINISTRATIVE PRINCIPLE ( K = 7 )

In this case, the whole market area of the each lower order centre is included in the region. Population has no choice to visit nearest centres and hence no chance of population getting divided amongst various nearest higher order centres. This is done to achieve political and administrative goals. For example, district collector has to collect tax from the whole population of the area .Populations of the area cant be permitted to pay some tax to collector of their area and some to collector of other area , because it causes inefficiencies besides law & order problems.

Here, all places A, B, C, D, E and F are controlled fully by central place G.

The Central place G dominates 6 other places and serves population of 7 places including its own. K = 7 Network would develop in highly developed systems of central administration, because the resultant arrangement maximises the number of settlements dependent on any one central place and eliminates the shared allegiances of other K value system
A central place system organised according to christallers Administrative principle: Level of Hierarchy Equivalent Number of Central Places dominated by the highest order c entral place Metropolis City Town Village Hamlet 1 6 42 294 2058 Equivalent Number of Market areas dominated by the highest order centre 1 7 49 343 2401

CRITICISM: i. NEGATIVE :

a. Assumptions of isotropic surface and rational human beings are wrong. b. Settlements are not even spaced. c. Non existence of equal sized equidistant spheres of influence or central places. d. Sometimes, lower order centres have functions of higher order central places. e. Consumers need not necessarily act in a rational way. f. Hierarchical tier functioning is not strictly followed. Higher order central places have snatched some of the functions of a lower order place. g. Market forces need not always operate central place systems because governments too interfere. h. It is more applicable to regions emerging from a subsistence economy having clear distinction between town & country but not to economically advanced regions. Where it is distorted by factors like industrial concentrations and government policies for regional development. 1. Fixed K value shows a very poor approximation with reality. ii. a. POSITIVE : Selective locations and efficient division of space and functions find a rational

basis. b. It shows interdependence by way of functional and behavioral aspects. c. It helps find some order in the spacing of settlements. d. Settlement distributions may be uneven but not disorderly. e. Central function may be found in socio-economic political structures like temple, etc. f. It helps understand role of settlement as a place of trade and exchange. g. The model has been used for regional planning as in Germany. h. Its validity is proved by examples like settlement pattern in Northern china plain. i. It helps understand play of concepts like range of good, etc. CONCLUSION: To Conclude in the words of Sidhhartha & Mukherjee

(Cities,

Urbanisation, & Urban Systems) Despite all the criticism it must be

emphasized that as with most other social sciences theories the central place theory is not meant to have universal validity. 10. CENTRAL PLACE SYSTEM IN INDIA :A. India has administrative and demographical hierarchy. administrative hierarchy as follows.: 1. 2. 3. 4. 5. 6. National Capital State Capital District Headquarters Tehsil towns Block Development Centres Gram Panchayat Centres 1 : 19 1 : 40 1: 6 2:6 2:6 Urban Centres 5000 population Most-Non Urban Metropolitan Cities It has K = 6 level

Ratio of Districts to States Ratio of Gram Panchayats to Blocks Ratio of Tehsils to District Theoretical spacing lower & higher order = Practical spacing = B.

The Census has on its own identified various settlements level without applying

any logical of scientific method. Still ,Indian settlements have a close resemblance to the marketing principle of the theoretical central place systems. Spacing Theoretical (Marketing principle) high to immediate low order centre = 1: 1:72 Spacing practical actual (Marketing principle) high to intermediate low order centre = 1:1.41 to 1:1.83 Major exceptions relate to million cities.

To quote Siddharth and Mukherjee , It cannot be conclusively proved that central place systems apply to Indian conditions . It cannot be rejected as well.

5. RESOURCES 5.1 INTRODUCTION:


What do we exactly mean by the term resources ? Resources in common persons parlance means anything available on this earth like Coal, plants, etc. However, a mare presence of these things does not make them a resource from the point of view of geography. A a thing becomes a resource only when it is actually of some use to human beings. To quote E.W. Zimmermann , The word resources does not refer to a thing or a substance but to a function which a thing or a substance may perform or to an operation in which it may take part, namely, the function or operation of attaining a given end such as satisfying a want. In other words, the word resource is an abstraction reflecting human appraisal and relating to a function or operation. A thing is converted into a resource only if it satisfies human wants which may be of any nature ,i.e., personal or social. To quote Prithwish Roy, Only the satisfaction of human beings converts anything or a substance into resource. 1. In short, a resource must posses following attributes : i. ii. functionability Utility

For example, plants do have functionability. But, if they cant be utilised to satisfy human wants, they cant be termed resources. Conversion of a thing into a resource depends on many factors like : 1. 2. Human desires/wants Level of cultural development. For example, petroleum is existing in Arabian countries for a long time. Yet, it could not become a resource until and unless modern technology could be applied to these areas to extract petroleum. Once extracted to satisfy human wants, it became a resource.

2.

A Resource can be viewed from different perspectives : i. ii. Temporal Perspective : Past, Present, future/potential Geographical Perspective: Lithospheric, atmospheric,

Hydrospheric, biospheric, extra terrestrial, Geo-centric. iii. iv. Quantitative Perspective : Sufficient, Insufficient or less/more Qualitative Perspective : Objective(external), subjective (internal)

All resources broadly fall into above categories. For example, biospheric resources contain plant, human and animal kingdom resources. Human resources include mans own wisdom ,too . To quote E.W. Zimmermann, mans own wisdom is his premier resource - the key resource that unlocks the universe . 4. Changing perspective : a) Old concept : Prior to industrial revolution (1760), a resource meant a tangible thing, only natural things, only the quantity of things, static nature of things. It excluded intangible things like peace, human population, concept of resistance by things. b) New concept : It includes intangible things, human population, concept of resistance of things, dynamism of things. It excludes things full of resistance and no functionability. 3. NORMAL CLASSIFICATION : However , a geographer generally classifies a resource into 2 broad categories : a) Natural b) Human A) B) NATURAL : Examples are petroleum, iron, copper, etc. HUMAN : Health conditions, culture, technological level etc.

4.

Following are some of the important definitions in the field of Resources geography. 1. E.W. ZIMMERMANN, Resources were defined as means of attaining given end, i.e., individual wants and social objectives. Means take their meaning from the ends they serve. As ends change means must change also.

CONVERSION OF A THING INTO RESOURCE CULTURE Substances Natural Human

Resources

Overcoming Of Resistance

Conversion of Neutral Stuff

Introduction of Utility

INTERRELATION OF NATURE, HUMAN BEINGS AND CULTURE

NATURE

NATURE

NATURE

Human beings are both a producer and consumer

2.

Wesley C. Mitchell, Incomparably, greatest among human resources is knowledge.

3.

Hamilton, It is technology which gives value to the neutral stuffs which it processes; and as the useful arts advance the gifts of nature are remade. With technology on the march, the emphasis of value shifts from the natural to the processed good.

4.

Bowman, The moment we give them (resources) human association they are as changeful as humanity itself.

5.

Prithwish Roy, So, with the

efforts of man, through the

functional or operational process, resource is dynamically created. 6. Professor Harbison,Human resources are the energies, skills, talent and knowledge of people which potentially can and should be applied to the production of goods and services.

7.

A.k. Dutta Gupta, Human resources refer not to human beings as such, but to the qualities they posses and which can be used by the community for some useful purpose.

8.

E.W.Zimmermann, Man (read it as human being) is predestined to be the director, planner and adviser.

5.

COMPARISON BETWEEN WEALTH AND RESOURCES : Wealth consists of : i. ii. iii. iv. Utility Functionability Scarcity Transferability

Resources consist of only : i. ii. 7. Utility Functionability BETWEEN RESOURCES AND NEUTRAL

COMPARISON STUFF:

Anything or any process that restricts substance becoming resource is called neutral stuff. Also, alternatively, if anything or substance does not contain functionability or utility, it is termed neutral stuff. Whereas, a resource contains both functionability and utility.

5.2 NATURAL RESOURCES


1. CHARACTERISTICS OF NATURAL RESOURCES: A) AVAILABILITY : They are available both spatially and temporally. Both horizontally and vertically. However , availability may be affected adversely in case of non-replenishable resources, whether biotic or abiotic, i.e., land his become a 3 dimensional resource since the industrial revolution. These resources may be terrestrial or extra-terrestrial. B) DISTRIBUTION : Highly uneven distribution. C) OCCURRENCE :

1. UBIQUITOUS : Available everywhere, i.e., land, etc. 2. LOCALISED : Restricted to some places only. Two types are: 1.Commonalities found commonly variedly, i.e., Water bodies. 2.Rarities Found rarely/scarcely in some places only , i.e. , gold, silver, etc. D) TYPES a. FUND RESOURCES : These resources will not last forever if used indiscriminately, i.e., coal, etc. They may be renewable or non-renewable, i.e., Iron Ore (nonrenewable), pig iron (renewable) since scrap can be recycled from pig iron once more. b. FLOW RESOURCES : These resources will last forever , i.e. , water, wind etc. These may be : 1.Finite 2.Infinite. Infinite resources may be turned into a finite one through indiscriminate use, i.e., forest resources are a self generating and renewing resources but dense forests may become barren infertile wastelands due to indiscriminate felling. E.W. Zimmermann has termed such resources as silt ed or choked flow resources.

B. DYNAMISM : Natural resources are dynamic, since nature is dynamic. To quote Prithwish Roy, In the eye of a natural scientist nature may be constant but a social scientist is concerned with the meaning of nature for man dynamic nature known to man for his own existence . This nature is both expanding and contracting. As the concept of Phantom Pile (E.W. Zimmerman) shows, application of science and technology produce/expand the extra resources from a given substance, i.e. ,fuel efficiency increased recently (1990 s) leading to plying 8o km per litre compared to 30 km per litre in 1980 s! To quote E.W. Zimmerman,

It (Nature) expands in response to increase in knowledge and improvement of the arts.Nature reveals herself gradually to man, but no faster than he can learn. C. IMPORTANCE : i. Natural resources are quite important to human beings in terms of their forming the basic bedrock upon which the whole edifice of economic development is constructed. Availability of natural resources gives to a place the initial advantages on which to build on. ii. Presence or absence of natural resources may have both positive and negative effects. For example, natural resources of Africa, North America, South America and Australia led to their exploitation by European nations, which were highly advanced in terms of human resources. It created positive gains to European nations. But, it led to negative consequences of the still lingering economic backwardness of African countries due to enslaving of 30 millions of their productive human population during slave era and their transportation to newly found lands. African countries have still not recovered from those losses of human beings. iii. Natural Resources remain meaningless, if there are no corresponding human resources/cultural advances capable of exploiting these. Despite being located in equally the same geographical locations (equatorial dense forests), Malaysian Rubber Plantations have a semblance of development with all the benefits/fruits of modern economic development, whereas pygmies are still economically backward and subsisting on nature for their bare survival with no benefits of modern civilisation owing basically to superior and efficient human resources/culture/science technology of the former in sharp contrast to primitive levels of human

resources/culture/science/technology of the later.

5.3

SIGNIFICANCE OF NATURAL AND HUMAN RESOURCES IN ECONOMIC DEVELOPMENT

1.

INTRODUCTION :
What do we exactly mean by the terms Significance, Natural, Human , Economic Development ? Once we understand these terms, we are in a firm position to appreciate the significance of Natural and Human resources in economic development. A. SIGNIFICANCE : This words means Importance or the Prime role , or Main role . B. NATURAL : This word means all those things which are made

available to human beings by nature . These are freely available to huma n beings. Human beings have not created these things. For example, Sunshine, Wind, etc. C. HUMAN : This word means all those thing which are related to human beings and those that are created through human efforts and their interrelationships . For example, culture, ethics, arts, science and technology, etc. D. ECONOMIC DEVELOPMENT : Development means growth of a thing from infancy stage into maturity stage. Economic Development means development from the point of view of economics. Economics means activities of producing, exchanging and consuming goods/services and information. Therefore, the phrase Economic Development may be taken to mean development of activities related to production, exchange and consumption of goods, services and information in a spatio-temporal context.

2.

SIGNIFICANCE

OF

NATURAL

AND

HUMAN

RESOURCES

IN

ECONOMIC DEVELOPMENT : A. Economic development of any place, region, or nation depends on the natural and human resources available to it. Quantitative and Qualitative aspects of resources are very important. Natural and human resources are unevenly distributed. Small countries like Kuwait have disproportionately large natural resources compared to big countries like India, i.e. ,Kuwait has 500 times more quantity of petroleum than India. Similarly some spaces may posses higher human resources, i.e. ,places in West Bengal and Bangladesh have a density of population more than 600 persons per sq. km ,whereas Himalayan regions posses population of less than 30 persons per sq. km. Therefore, Bengal and Bangladesh are more developed economically than the Himalayan region. B. Although natural resources give to a place, region, or space the initial advantage, yet its human resources which are more important of the two. To quote E.W. ZIMMERMANN, Man is predestined to be the director, planner and aspirer . Also, As an agent of Production man contributes his labour, mental and physical; with the aid, advice and consent of nature he builds culture to render more effective his

production and to lessen the impact of resistance ; he discovers new ways and invents new arts; his aspiration ,aim and purpose. As

beneficiary, he enjoys the advantages of advancing civilisation. C. MAN LAND RATIO : A mere presence of a large/small number of human population is no guarantor of economic development in all geographical area. Similarly, a large/small population of human beings may mean less economic development. It looks contradictory, does it not ? Its really not so, what matters is not the presence or absence of a large population of human beings rather its the man - land ratio which is more important. This is indicated by the following equation:

Man-Land Ratio = Efficiency of man (Humans) Efficiency of Land Efficiency of humans depends on their cultural, scientific, and technological levels, which can be measured in terms of their productivity from land per person especially in agrarian areas. Sparsely populated areas may be under-developed and densely populated areas may be highly developed in all respects. To quote E.W. Zimmermann, Man-Land Ratio takes into account all the human qualities bearing on productivity and all the environmental aspects both natural and cultural affecting the availability of resources. A high population

density may indicate overpopulation; but even a region with a low population density may be over populated ,if we consider its man Land Ratio. For example, European Countries like Holland ,etc., have a higher population density compared to India . Still , Holland has higher economic development due to higher man land ratio due to higher efficiency of man compared to India. In other words, Holland has qualitatively better efficient human resources in terms of health, knowledge, capabilities, activities, productivity. On the other hand, Indian human resources are poor qualitywise that hampers economic development. D. SIGNIFICANCE OF NATURAL AND HUMAN RESOURCES IN ECONOMIC DEVELOPMENT: To quote E.W. Zimmermann, Carrying capacity is the capacity to support human life to satisfy human wants. It is both internal (geographical ) and external (cultivated culturally). For example, though Hongkong possesses low internal carrying capacity, still due to external capacity (like hard labour, science/technology) it has had tremendous economic development.

Thus, human efficiency, cultural level in Juxtaposition with natural resources determine economic development. A lot many examples are available to prove this point. Jharkhand state in India possesses one of the richest mineral resources basis. Still, it is not economically developed simply because of poor quality of human resources. It has a tribal population, which does not presently posses requisite skills, knowledge and willingness to make optimum use of those natural resources like coal ,etc. Consequently, skilled and qualified technical and other types of labour from outside the state gets employed which naturally means: 1. No benefit of employment to locals. 2. Outflow of salaries/economic benefits to outside areas to which such imported labour belongs. Naturally, Jharkhandites have low

purchasing power which affects their ability to enjoy basic needs like proper food, clothing, shelter and other luxuries. A. Spatial Examples of human Natural resources significance abound. People like Pygimes, Bushman, and other tribal groups still engage on a subsistence level in hunting, fishing and gathering. Also, modern and advanced American and

European people engage in these activities. But, Pygmies/Bushmen are economically less developed, because their economic activities are carried out on subsistence level, merely enough to satisfy their own basic needs, leaving little to spare for higher economic activities like exchange, etc. simply because of their low man-land ratio in terms of their primitive level of science and technology. In sharp contrast, Europeans/Americans carry out hunting, fishing, gathering on a commercial basis with the help of their higher levels of science and technology reflected in their use of modern means of fishing, forestry, agriculture, i.e., in 1995 the total fish catch was 90 millions tons in the world. Grand Bank, and Dogger Bank are the famous fishing grounds. Atlantic and Pacific Oceans supply 80 % of the catch. This is so because temperate fisherman are skilled, possess traditional technical skills and higher technology like high-tech processing, salting, packaging and exporting. Naturally, they have much to spare for market besides fulfilling their own needs. This gets them enough money in domestic/international markets which is further used to speed up their economic

development in terms of better health, education, living conditions, recreational facilities, higher national income, lower fertility and mortality , etc. B. Temporal examples: Earlier human civilisations developed around rivers possessing areas endowed with fertile land like Indus valley, Mesopotamia, Egypt, Mediterranean and China simply because of superb natural and human resources, whereas areas like interior of Africa and Asia remained undeveloped.

5.4

Formula of Sustainable Economic Development :

Degeneration of resources(dr) = Regeneration of resources(rr) Or dr = rr --------(i)

Now, rr = Discovery of new sources of particular resource(N), Discovery of more efficient way of utilisation of present resources(E), working out alternative substitute resource(W) Or rr = (N,E,W) From (i) & (ii) we get dr = (N,E,W) 1. Concepts of short term and long term highest possible sustainable development : Y 5
Consumption of Resources SDPH1 = Short term equilibrium curve of economic development A B A B SD PH2 SD1 PH1 SDPH2 = Long term equilibrium curve of economic development

--------(ii)

4 3 2 1 0 1

Levels of Sustainable Development

EXPLANATION :

1.

In the short run, maximum possible sustainable development level is at 5 on (X axis), since resources are not fully utilised yet as in Primitive tribal societies. However, with progressive advance of civilisation, resources are used increasingly, leading to a situation where a given level of

development is found unsustainable in view of increasing utilisation/rapid depletion/non-availability of resources. Hence, the point of SDPH, shifts from B to A. 2. However, since human beings desire not to loose what is gained through development processes already, it leads to an acceptance of the decline of the known resources. At the same time , there is worry that they may actually lose this development state , if not sustained adequately. This in turn leads to a search for NEW. In due course of time, NEW is acquired. Thus, now more resources are available to sustain the development. However, since rate of depletion of resources shifts to a higher level, the curve of sustainable development shifts to the higher side too as SDPH2. Curiously enough, having learnt from the pitfalls of short-term run of development, mankind becomes wiser in the new situation and therefore makes more efficient and in a much efficient way the use of NEW

resources, thereby prolonging the life of resources. This leads to the point of maximum possible sustainable development shifting from A to B! 2. Formula for depletion or resource availability on particular given point of time in future : 1. Total depletion = Present Depletion (1+rate of depletion) time -----------------100 in future. 2. Resource Availability = OR Total depletion. Where OR = total reserves of exploitable resources.

5.5 AN INTRODUCTION TO THE INTERESTING ELEMENTS OF IN THE STUDY OF RESOURCES GEOGRAPHY 1. INTRODUCTION : OPTIONS GEOGRAPHY or the RESOURCES GEOGRAPHY becomes an interesting field of study by applying certain basic principles of economics as illustrated below: 2. 1. LAW/CONCEPTS : LAW OF CONSERVATION AND DEPLETION OF RESOURCES :

Y 10 6

5 4 2 1 X 0 C1 C2 C3 C4 C5 C6 C7

(Ideal Long run equilibrium of the conservation and depletion of resources)

C D C1 C4 X S

= = = = = =

Conservation of resources Depletion of resources Lower level of consumption of resources (C3=Level of consumption) Higher level of consumption of resources. Axis showing number of units. Point of intersection or the point of sustainable development.

(A)

1.

Above figure clearly shows that in the short run, when consumption of

resources is at lower level C1, the conservation of resources is very high at level 6 on Y axis and depletion is low at level 1 on Y axis. 2. At consumption level C3, conservation is still higher at 5 than depletion at 2 on Y axis. 3. At consumption level C4, both conservation and depletion level are same at 4 on Y axis. 4. At consumption level C7, depletion at 10 is higher than conservation at 1 on Y axis. (B) However, C & D curves tend to exhibit equilibrium in the long run ,because though in short run initially resources consumed are less leading to a higher level of conservation than depletion, yet after some time human advancement, needs/desires lead to a situation where resources consumption assumes alarmingly higher proportion leading to higher depletion than the known level of conservation of resources. Consequently, humanbeings realise the folly and start consuming less of those resources which ultimately leads to a situation where depletion of comes back to the relative position of the conservation level. (C) No doubt, at one point depletion becomes more than conservation. Naturally, question arises as to how can than resources lost brought back so that C equals D/ It looks a fallacy, does it not ? Well, No! Here, resources mean all the resources taken together that are available to humanbeings. Whenever, any one resource depletes more than its conservation from amongst the basket of resources, humanbeings are quick enough to compensate it either by developing viable alternatives or efficient exploitation techniques. Application of efficient techniques prolong the life of remaining resource amount, thereby raising its relative level of conservation. Thus, mankind always achieves a balance between C & D of resources, i.e., point S where development vs a vs conservation (or sustainable development) issue gets resolved amicably.

(D)

THEORY : 1. The analysis of D & C illustrates clearly how automatic mechanism

solves the 3 problems of what, how and for whom, i.e., what resources to be used or created, how to be consumed or how to bring down depletion level, and for whom to do all this. 2. The conservation schedule : A conservation schedule illustrates the relationship between the quantity conserved and the consumption of commodity, other things being held constant. Such a conservation schedule, depicted graphically by a C curve, holds constant other things like destruction by natural causes like fire, etc. Almost all resources obey the law of downward sloping conservation, which holds that conservation falls as the consumption of resource rises. This law is represented by a downward sloping conservation curve. Many influences lie behind the conservation schedule for this automatic mechanism as a whole: human desires , needs ,natural hazards, etc. When these influences alter, the conservation curve will shift. 3. The Depletion Schedule : The depletion schedule (or depletion curve ) shows the relationship between the quantity of a resources that humanbeings desire to deplete- other things constant and that resources consumption . Quantity depleted generally responds positively to consumption , so the depletion curve rises upward and to the right.

Elements other than the resources consumption affects its depletion ,too. The most important influence is the resources total availability ,its

known/unknown reserves and the ability of human beings to innovate and evolve efficient technology to utilise the same for a still further longer period . Other element in depletion include natural disasters beyond the control of human beings.

All resources obey this law of upward sloping depletion which holds that a quantity depleted increases as a resources consumption rises . This law is represented by an upward sloping depletion curve. 4. Equilibrium of Conservation and Depletion: The equilibrium of conservation and depletion of resources is achieved in a geographical setting at a consumption level at which the forces of conservation and depletion balance each other. The equilibrium consumption is the consumption at which the quantity of a resources conserved just equals the quantity depleted. Graphically ,one can find the equilibrium as the intersection of the depletion and conservation curves. At a consumption level above the equilibrium, human beings are confronted with more depletion of resources than they can withstand, which leads to a shortage of resources & exerts downwards pressure on consumption of resources .Likewise, a low consumption level of resources leads to an excess of resources and human beings therefore are led to consume more and more of them, thereby leading the consumption upward to the equilibrium. 5) Shifts in the Depletion & Conservation curves alter the equilibrium consumption and quantity of resources . An increase in conservation, which shifts the conservation to the right shall increase both equilibrium consumption and quantity of resources. An increase in depletion , which shifts the depletion curves to the right shall decrease consumption and increase the quantity conserved. 6) To use conservation and depletion analysis correctly, we must follow these steps :i) Distinguish a change in conservation or depletion (which produces a shift in the curve ) from a change in the quantity conserved or depleted ( which represents a curve movement along a curve ). ii) Keep other factors constant, which necessitates distinguishing the effects of a change in the resources consumption from the effect of a change in the other influences.

iii)

Look always for the conservation and depletion equilibrium, which is at the point where forces acting on consumption and quantity of resources are in balance. 7) Competitively, consumption levels determine the extent of depletion among those resources in need of conservation.

2)

CONSUMPTION ELASTICITY OF CONSERVATION : A measure of the extent to which quantity conserved responds to a consumption change. The elasticity coefficient (consumption elasticity of conservation Ecp ) is percentage change in quantity conserved divided by percentage change in consumption. In figuring out percentages, we must use the averages of old and new quantities in the numerator and of old and new consumption levels in the dominator disregarding the minus sign.

3)

CONSUMPTION ELASTICITY OF DEPLETION: Conceptually similar to consumption elasticity of conservation except that it measures the depletion responsiveness to a consumption change. More precisely, the consumption elasticity of depletion measures the percentage change in quantity depleted divided by the percentage change in consumption.

4.

CONSUMPTIONCONSERVATION ):

INELASTIC

CONSERVATION

(OR

INELASTIC

The situation in which consumption elasticity of conservation is below 1 in absolute value. In this case, when consumption declines, total resource loss declines, and when consumption is increased , total resources loss goes up. Perfectly inelastic conservation means that there is no change at all in quantity conserved when consumption goes up or down. 5. CONSUMPTION ELASTIC CONSERVATION : The situation in which consumption elasticity of conservation exceeds 1 in absolute value. This signifies that the percentage change in quantity conserved is greater than the percentage change in consumption. In addition, elastic consumption implies that the total resource gain (Consumption times quantity ) rises when consumption falls , because the increase in quantity conserved is so large.

6.

UNIT ELASTIC CONSERVATION : The situation, , between consumption-elastic conservation and consumption inelastic conservation, in which consumption elasticity is just equal to 1 in absolute value.

A)

LAW OF DIMINISHING AVAILABILITY OF RESOURCES :-

Availability 4 3 2 1 X 0 1 2 3 4 Consumption As more and more Quantities of a resource are consumed ,its total availability declines. B) LAW OF DIMINISHING CONSERVATION OF RESOURCES : A law stating that the additional conservation from successive increases of technological efficiency will eventually diminish when other efficiencies are held constant.
NOTE: LEARNED READERS TO APPLY PRACTICALLY THE ABOVE I LEAVE IT TO THE ERUDITE OUTLINED LAWS.

6.
6.1 INTRODUCTION :

FACTORS OF PRODUCITON

Factors which are necessary for production of goods, services and information are called factors of production. Production may be of several types : ( a) Primary, (b) Secondary,( c) Tertiary, (d) Quaternary, (e) Quinary. Production of products, i.e., goods, services and information can not take place from out of nothing. For example, in primary sector, agriculture generally is followed. Agriculture involves many activities like tilling the land, sowing the seeds, irrigating the land, and harvesting the crops. But, if there is no place or piece of land to cultivate, crops cant be grown. Similarly, if there are no people to do the tilling, sowing, and harvesting of crops, again crops cant be grown. Likewise, seeds cant be sown, if the farmer does not have money to buy them. fertilisers to increase the productivity of soil, if the farmer does not have enough money to do so. Without technical knowledge, the farmer cant apply scientific techniques to farming. Thus, we see that a large number of factors determine the growing of a crop. Same applies to production of products in other fields, too. All factors work in an integrated manner and not in isolation. 6.2 FACTORS OF PRODUCTION : Following are the main factors of production : a) Land,(b) Labour, (c) Capital,( d) Technical knowledge,(e)Entrepreneurship,(f) Organisation, (g) Time, (h) Government policy, (I) Power Resources, (j) Power Resources, (k) Historical factors, (l) Opportunity cost, (m) Oceans, sky and space. 1. a) EXPLANATION: LAND: Availability and configuration of land besides its quality influences production. Land includes topographical features like relief, texture and structure of soil, productivity of soil, minerals ores, plant and animal kingdom on it, etc. Financially cheap land attracts people to start some economic activity there. High costs of land discourages people from

taking up economic activities there , in general. However, in cities, cost of land determines the type of activities taken up, i.e. , central part of metropolitans being costly is used for higher economic activities like Big Shopping Centres ,whereas outer fringe areas, being relatively cheaper are used for residential areas. Fertile land easily attracts farming activity of crops ,whereas a barren land does not. But, a barren land may attract other production activities like manufacturing which does not require land to be fertile. Thus, in short land acts as an important factor of production. b) LABOUR : Quantity and quality of labour help determine the type of production and location of production units. Without labour ,no production can take

place. Labour can be of several types: Skilled, Semi skilled or Unskilled. Production activities requiring higher levels of skills/knowledge like information technology are generally located in and around big cities due to easy availability of the same. Production activities not requiring skilled labour can do with unskilled labour . Shortage or excess of requisite labour affects production ,too. A region lacking in requisite kind of labour may not be able to take up a particular kind of production activity or it may have to borrow the same from somewhere like Gulf Countries are importing from outside the skilled / technical labour to help carry out the production of petroleum, on a commercial basis. Labour may be mobile or immobile . Mobility of Labour depends upon, using Everett S. Lees Migration theory , on 4 factors: source, destination, intervening opportunity and individuals own perception besides sequential decisions . Labour intensive production activities generally prefer a location near labour itself to cut down on labour costs. Thus, Labour influences in several ways the production.

c)

CAPITAL: Without Capital, production cant take place. Capital includes both money as well as machinery. It may be:- mobile or immobile . Mobility is

determined by the probable distribution of returns. Known customers have a fair chance of getting more finance from the financial institutes like Banks, etc. Mobility determines industrial location in free & open

economies. On the other hand, mobility does not determine industrial locations in Socialistic Countries, because there it is highly mobile. It is not highly mobile in capitalistic societies. Production may or may not be capital intensive. Industrial development of a nation state or any region depends on building of core industries requiring heavy capital. Such

capital may either be borrowed from domestic or international financial markets. d) ORGANISATION: Organisation acts as a factor of production, because without organisation of production, the firm or productions unit cant exploit economies of mass production, raise funds and organize the production process. To quote Samuelson Nordhaus Efficient production requires specialized machinery and factories, assembly lines, and division of labour into many small operations Thats why generally speaking production does not take place in our basement rather it takes place in firms or the organization ranging from finest individual proprietorship to the giant multinational corporations or the state owned big corporations/Public Sector Undertakings. e) ENTREPRENEURSHIP : It is considered to be a mobile factor. Entrepreneur is required to kickstart some kind of production. A region may have numerous entrepreneurs, especially in a capitalist economy. Entrepreneur takes decisions regarding location of production unit, etc. For example, J.R.D. Tata was an

entrepreneur who took decisions to set up steel plants in private sector in India. f) TECHNICAL KNOWLEDGE: To run any production unit / process, a certain minimum amount of technical knowledge / skill is required. Technical knowledge determines

production functions.

Techniques may very spatially or according to

purpose / specific location. For example, in Punjab the farmer can till the land with the help of a tractor quicker than a farmer working simply with oxen and a wooden hoe in Orissa. Medical laboratory or cliff house may be designed for a specific purpose / location. Technical changes enhance productivity. g) POWER RESOURCES : Power is required to run production units. It may be derived either from living or non living kingdom .Coal comes from physical or non- living kingdom. Ox represents living source of power. Similarly, human labour represent living type of power. In olden days ,farming depended on

human / animal power. Similarly , manufacturing depended on coal. However, presently hydel and other sources have taken the place of pride amongst the sources of power. In fact, no activity can be carried out without the help of power of some kind or the other. resources act as An important factor of production. h) HISTORICAL FACTORS: Historicity acts as a factor of production ,too. With time ,certain places come to have socio economic politico cultural significance and become leading centers of production , exchange of goods, services,and information. This is turn encourages production activities in the region by virtue of established systems of financial institution, procurements distribution system, etc. Thus, power

i)

OPPORTUNITY COST : It acts as a factor, too. It decides what type of production activity may take place. If an entrepreneur finds that taking up an activity X may cost him an opportunity Y which will result into a net financial loss, the entrepreneur may switch over to economic activity Y from the

j)

OCEANS (WATER BODIES), SKY & GALACTICAL SPACE: Classical economists considered only land as a prominent factor on the surface of which an economic activity takes place. However, in todays world water bodies, sky & galactical space have become factors of production ,too. A nation with a large indented coast line has better harbours / ports in larger numbers than a land locked country. A country possessing oceanic coast may indulge into economic activities suitable in such a scenario, i.e. ,India has been able to get mangnese noodles from ocean surface owing to the availability of this factor of production called large water bodies (Oceanic). European Nations having coastal locations have been able to carry on fishery industry or Pisciculture owing to availability of oceanic factor of production. Sky or atmospheric conditions become a factor, too by encouraging or discouraging certain types of productions. Space (here it means galactic, intergalactic) above atmosphere carrying human satellites is important,too. Recently, it has become a factor in the sense that production of certain minerals / items require certain conditions which are met only in outer space, i.e., astronauts / cosmonauts have carried out experiments aboard artificial satellites and succeded in manufacturing certain types of minerals, etc.

k)

GOVERNMENT POLICIES: In capitalist or free economies ,market forces primarily regulate economic activities following generally the principle of demand &

supply/economics of scale etc. However, in communist or socialist political set ups , principles like demand and supply/economies of scale become rather irrelevent wherein governments of the day decide production locations, types of products to be produced, and processes to be followed for production. Whereas, in mixed economics, both private and public sectors play a joint role in production. Thus, government policies act as a factor of production, too. l) DEMAND FOR A PRODUCT: Demand acts as a factor, too. No production of a product will take place, if there is no demand for it irrespective of modes of production/political set ups like capitalism/socialism or mixed economics.

m)

TIME : To quote Samuelson Nordhaus Production requires not only labour and land but also time . A farmer can not change his crops in midseason. Gas pipelines cant be built in a single day. Once built, they last for many years together. Time may be of 2 types: (1) Short run (2) Long run In short run, fixed factors like Capital cant be changed. Only variable factors like materials and labour can be changed. In long run, all factors including fixed ones like capital can be changed or adjusted, also. Efficient production requires time in addition to other factors , too.

6.3
1.

SPATIAL VARIATION IN THE FACTOR COST

INTRODUCTION : First of all, let us understand what we mean by the terms "Spatial" ,"Variation" and "Factor Cost". Well ,the word "Spatial" refers to a place or region on the earth's surface or a heavenly body. The word "Variation" means a "Change". "Factor Cost" means the cost resulting from use of any factor of production. These factors of production are: land, labour, capital, Organization ,etc. Thus, the meaning of the phrase "Spatial variation in the factor cost is "a change in the cost of a factor of production due to its differing spatial location.

2.

EXPLANATION : Production of any goods, services and information is not possible without existence of certain basic factors like land, capital etc. The cost of these factors is not same at all places on the earth's surface or in outer space. For example, labour cost is lower in rural areas than in the urban areas. Also, labour cost is lower in less developed countries or regions as compared to the more developed countries. Likewise, land is cheaper in rural areas. But, it is costly in Urban areas. Similarly, finance is available at cheaper rates in highly developed financial nerve centres like London, New York ,etc. But, the same is costly in rural areas. In the same

way, capital like machinery etc. is cheaper in highly industrialised countries. It is costly in developing countries. Perishable and delicate raw materials transported over a long distance makes the cost of raw materials very high. , a location of the production unit near such raw materials decreases its cost of such raw materials. The cost arising from "Organization and entrepreneurship" aspects are quite low in industrial complexes like Maharashtra Industrial Development Corporation (MIDC) complexes in Maharashtra. Whereas, these cost are quite high when a production unit is set up in isolation ."Power" or "Energy" cost is lower near sources of power and is higher at increasing distances. Cost of Production is lower in industrially and economically backward areas in Industrial Parks. Whereas, it is higher in units located in economically developed areas. Another example can given that of the cost of land in the core and periphery of a city. The cost of land is generally higher in the core compared to the periphery. 3. CAUSES OF VARIATION:

The spatial variation in the factor cost is caused by numerous factors. These factors are availability or non availability of these factors at a given place, mobility or immobility of these factors, and policies of governments. Excess availability causes reduction in the price at which that particular factor is available. For example, labour will be cheap if its supply is more than its demand. Likewise, labour is costly, if its supply is less than its demand, because labour in such a situation is in a position to bargain for a higher compensation package. Existence of a large number of financial institutions at a place increases the mobility of finances and capital, thereby decreasing the cost of these factors in terms of reduced rates of interest. Likewise, governments give numerous concessions like tax free holiday, cancess ional rates of duty, cheap infrastructural facilities to industrial units located in economically backward areas,etc, This reduces the overall cost of production. Governments provide these concessions to achieve various policy decisions like development of economically backward regions / areas.

4) SIGNIFICANCE OF SPATIAL VARIATION IN THE FACTOR COST 1) Spatial variation in factor cost has got both short term and long term significance and implications. It may either encourage or dicourage the exploitation of natural and human resources of a given region in terms of attraction or repulsion of economic activities ,i.e., primary, secondary ,tertiary. Quaternary, and Quinary. 2) Spatial variation in factor cost is very important in the location of production units in capitalist and mixed economics. However ,it is of little significance in centrally Controlled Command Economies like erstwhile Communist USSR. 3) A study of spatial variation in factor cost cleanly points to the fact that an ideal location of any economics activity is the point where factor costs are minimum possible.

7.TRANSPORTATION
7.1 INTRODUCTION: What do we exactly mean by the term Transportation ? Well, it means the process of carrying something from one place to another or conveyance to another place by overcoming the friction of geographical/extra terrestrial /economic distance. It includes Cargo and Passenger. In olden days, means of transportation and communication were the same. However, in modern days, these 2 have become separated. Transport excludes communication. Now a days , the means of communication include post office, telephone, satellites, Internet, etc. highly sophisticated scientific and technological gadgets. Days of running messengers and birds are almost gone away except during natural calamities.For example, Orissa state police department makes use of trained pigeons during cyclonic devastations. 7.2 BASIC ELEMENTS OF TRANSPORTATION : Following are the important basic components or elements of any medium of transportation. i. ii. iii. The points of origin and destination. The route through which transportation takes place. The vehicle or the carriers on which the goods or passengers are transported. iv. The kind or type of power/energy used in the vehicle.

7.3 DIFFERENT MEDIUMS OF TRANSPORTATION : i. ii. iii. Land Water Air

7.4 MEANS OF TRANSPORTATION : i. ii. iii. iv. v. Men and animals as carriers and draught power respectively. Road transport Rail transport Ropeways Cableways

vi. vii. viii.

Pipelines Water ways : ( a)Internal, (b) Oceanic Air Transport.

7.5 MODELS OF TRANSPORTATION : Models of transportation means the models which show different patterns of transport link seen as a network. It gives more importance to lines or links (edges) or connectivity than the points or areas (nodes or vertices). 1. Types of models and characteristics : Models of transportation may be viewed from different perspectives as follows: i. PLANNER MODELS: These are characterized by edges or links, which have no intersections or common points except at the vertices. For example, the following model of a transportation route from A to E shows it : A B C D E Edge / Link ii. NON PLANNER MODELS: These are characterized by edges or links, which have several intersections or common points including the vertices. For example, the following model of transport routes from points A to E shows it: A B Vertices

D iii. SIMPLE MODELS: C

These models may be quite simple as shown below: Simple Planner Model A E B C D C E These reflect lower connectivity. iv. COMPLICATED MODELS: These models are quite complicated and reflect higher connectivity. Following is an example of a complicated model of transportation (Planner model): A D Simple Non - Planner Model A B

B C D

Following is the example of a complicated Non-planner model:

E NOTE: In case of a non-planner model, simplicity or complication is a relative concept. Complicated Transportation (non-planned) models are likely to be more connected compared to the Transportation models for planned ones for the same number of points or vertices.

(v)

BUILDER FRIENDLY :

Such models of transportation are builders - friendly in the sense that these minimize the routes and at the same time ensure that points or vertices are connected in the network. This minimises the construction cost of the entire work and maximises revenue generation from the routes. (vi) USER FRIENDLY: These transportation models are user - friendly , because they connect all the points with each other. In other words, these are non-planned complicated type of transportation models showing 100% connectivity. This minimizes the cost of transportation by providing to the user the shortest route possible between any set of two given points. However, this causes inefficiency to builder in terms of construction cost. Thus, we may a clear out idea of the transportation models from the following flow chart:

TRANSPORTATION MODELS

SIMPLE

COMPLICATED

PLANNER

NON - PLANNER

PLANNER

NON - PLANNER

BUILDER FRIENDLY

USER FRIENDLY

BUILDER FRIENDLY

USER FRIENDLY

BUILDER FRIENDLY

USER FRIENDLY

BUILDER FRIENDLY

USER FRIENDLY

i.

SHAPES OF TRANSPORTATION MODELS :


AIR LAND WATER

Any type of shape may emerge like Hexagonal, diamond, Star, circular, radial, etc. depending on the way the vertices/nodes or points are connected with each other through edges, links or routes. 1. IMPORTANCE OF MODELS OF TRANSPORTATION : 1. Models show the number of maximum possible routes in a given network, i.e., 0.5 (m2 -m) 2. Models show the connectivity of the vertices/models/points covered by it, i.e. , 2(0r) m2 m 3. Models help practically in avoiding constructing non-profitable routes. Routes/edges/links or transport network developed may cause often financial losses to the builders. For example, poor-decision making led to failure of the great central railway from Sheffield to London, the last major railway line to London, in 1893-99, because it never paid any profits. Whereas some transportation networks like Panama Canal have proved profitable. 2. ELEMENTARY MEASURES (topological) of Network structures (based on gross characteristics) : 1. For Planner Graphs : (1) (2) (3) Cyclomatic Number () Beta Index () Alpha Index () = = = EV+G E/V E-V+G 2V-5 100

(4)

Gamma Index ()

2.

For Non Planner Graphs :

(1)

Alpha Index ()

(2)

Gamma Index ()

7.8 OBJECTIVE OF THE STUDY OF TRANSPORTATION :


1. Analysis of transport linkes as a network to measure accessibility and the degree of connectivity. 2. Measurement of volume of traffic on transport links as flows producing a complex pattern of principal and subsidiary routes. 3. Studying Transport as a space adjusting technique in terms of bringing together of supply and demand by a reduction in distance between them and as an analysis of economic distance . Economic distance is determined by the distance upto which a commodity can be carried depending on the transport cost and the increase in its value.

7.9 VARIATION IN COST OF TRANSPORTATION


1. INTRODUCTION : Cost of transportation varies according to many factors like type of medium of transportation, geographical/economic distance covered, terrain, commodity to be carried. These can basically be reduced to 3 elements: (1) (2) (3) Operating costs Profits expected by the carrier at the time of rate determination Government Policies.

2.

VARIATION : Following graph shows a simple case of variation in cost according to different methods of transport : Y

Road Transport Costs

Rail Water T3 T2 T1 B A X Distance C

T1, T2, T3 represent overhead cost or the terminal costs of Road, Rail and Water transport (Ocean) respectively. Ocean transport has greatest terminals cost, because it need costly vast apparatus of ports with handling facilities. Whereas, Road transport does not need such vast terminals, as even goods can be located near godown along any motorable path. Railways require terminal costs between the terminal costs of road and water (Ocean) transport. However, roads have higher line haul cost (cost of moving goods fuel costs and wages ), because only relatively small loads are carried and so the costs get spread over a few items of cargo only. Oceans have lowest line haul cost, because these rise slowly with increasing distance due to their spread over much larger cargoes. Rail transport cause intermediate type of line haul costs.

Thus, as the above explanation of graph clearly shows ,the road transport is cheapest over short distances (A-B), rail over medium distances (B-C) and ocean

transport over long distances (Beyond C). However, this is very much an oversimplified and highly idealised explanation of transport costs. Transport cost is affected by numerous others factors in addition to geographical distance and the medium of transport. 3.CLASSICAL CASE STUDY: Van Royen & Bengstn published in 1964 comparative Transport costs per Tonne Kilometer between methods taking railway transport costs as base of 100. This study shows water transport to be the cheapest, followed by rail, road, airways in that order. Following is the result of the case study: -

Medium

Method

Cost ( Rail transport = 100 )

Land

Man Horse & Cart Road Rail

1,800 1,700 1,800 430 100 28 14 7 1,500

Water

River Ocean Great Lakes

Air

Air Craft

4.TYPES OF COSTS : (1) (2) Line - Haul costs Overhead Costs (cost of equipment such as terminal facilities, ships, or railway track, etc.) (3) Transfer costs (indirect costs like insurance cover for the cargo).

5.FACTORS OF VARIATION IN TRANSPORTATION COSTS : (1) GEOGRAPHICAL/ECONOMIC DISTANCE: Quite naturally costs increase with an increase in geographical distance. For example, a journey of 700 km will cost more than a journey of 400 km, because terminal costs can be spread over more distance (long haul advantage) .Break of Bulk point may increase costs. However, provision of in transit privileges may help keep costs constant, i.e., grains from canadian prairies enjoy such a privilege. (2) TERRAIN: Terrain causes variation in transport cost. It is costly to cross land than oceans. Likewise, it is costly to cross mountains than plains. (3) TYPE OF CARRIER: Carrier causes variation, too. Petroleum movement through pipeline is less costly than through tankers. (4) COMMODITY: Different commodities attract different transportation costs. Raw materials / semi finished products, being of low value and requiring less handling and other charges are cheaper to transport than the finished products / breakable /perishable articles which require much care ,handling and specialised packing leading to building of higher transport charges. Some non perishable

articles may not increase costs, however, other non perishable articles may require special need , and care like precision instruments / passengers which causes higher transportation costs. For example, a tonne of coal is cheaper to transport over the same distance than the refrigerated treat, since refrigeration increases costs . Type of commodity is the basic factor determining the level of a freight rate. (5) COMPETITION : Monopoly of any type of carrier causes higher transportation costs. Competition leads to lower transportation costs, since every carrier tries to attract business by offering lower freight rates compared to the competitor. For example, competition offered by New York state Barge has forced to keep

railway freight rates low between New York and the Greak Lakes. This has meant that freight is transported more cheaply over a greater distance (1,446 km) from Chicago to New York than over a smaller distance (1,309 km) from Chicago to Philadelphia. Earlier in 1836, freight rates fell from 12 P per tonn to 1 p on the Loughborough Navigation.Slashing of airfare in 2002 by nearly 40% by Jet Airways and Indian Airlines on pune-delhi air route has narrowed the difference in fare charged by the railways and airways on punedelhi sector triggering a cut throat fare warfair between railways and airways , since by paying this just nomi nal higher airfare the traveler feels tempted to travel by air saving 22 hours of journey! (6) QUANTITY MOVEMENT: Commodities moving in large quantities cause less transport charges, because even after charging lower rates per unit, the carrier can still get a large volume of cumulative profit. To get the same level of profit as a full cargo, the carrier charges higher freight rates per unit, if quantity of commodities is quite less. Likewise frequent movement of commodities ensures steady and cumulative profits to the carrier, even after charging less. Also, a carrier charges less the frequently moving commodity to earn the goodwill of the shipper. (7) CONCESSIONS: Transporter may give back haul rates to the customer to avoid empty return of the cargo containers from the point of destination. These rates for goods movement from destination to origin may be quite less than that for movement of cargo from origin to destination. The idea is to earn whatever is possible and it is a bonus of sort to the carrier. For example, the return of grain flows from the Prairies to the Atlantic ports of North America enjoy such a concessional rate. (8) SPECIALISED NATURE OF SERVICES : Premium or higher rates may be charged when specilised services are provided. For Example, higher rates are charged for high-speed passenger AND FREQUENCY OF COMMODITY

train Shatabdi. than the normal - speed trains in India. The charges for a chartered plane are higher than a flight aboard regular passenger aircrafts. (9) GOVERNMENT POLICIES : Government policies cause variation in transport cost , also. These policies relate to three groups - Economics, Political and Social. As regards economic reasons, government may take a decision to concentrate or disperse economic activities. In India, industries have been encouraged to be set up or disperse to remote undeveloped areas through provision of cheap reliable transport lines despite their high initial construction costs. Ruhr industrial belt in Germany saw concentration of industries due to differing govt. policies on transport of iron ore and coal (lower/higher cost respectively) which encouraged import of iron ore from Sweden more cheaply than the costly transportation of coal export. As regards political reasons , government may encourage or discourage provision of transportation and affect freight rates by placing higher tariffs. For example, this was done in Europe till 1958 by doubling the handling charges on fuel and ore crossing international boundaries. Trans continental railways of the USA and Canada, and Trans Siberian Railway line of U.S.A. were created for political binding of the coast to coast units or large stretches of land. This involved pricing policy,too. From social perspective too, government influence by making transportation cheap, since transportation is considered more a social service rather than a business activity. It does it by 2 means of subsidizing: (1) Direct cash grants to compensate for losses. (2) Indirect subsidies by imposing uniform rates over the whole transport system / network leading to supporting of loss making roots / transports by the profit making one. Indian railways is able to connect to remote areas due to this reason.

7.10 INTRODUCTION:

MODES OF TRANSPORTATION:

First of all, let us understand the meaning of the phrase Modes of Transportation. This key words are Modes and Transportation. Meaning of the word Mode is Way, Manner, Style . Meaning of the word Transportation is Conveyance to another place or Carrying from one place to another. Therefore, meaning of the phrase Modes of Transportation is Ways or manners of conveyance or carrying from one place to another. Meaning of the word Conveyance is act of carrying , carriage or vehicles. Thus, above explanation shows clearly that there are different act of carrying may take place. It may be by using animated or lively and inanimated or lifeless ways. Lively ways include use of human beings and beast of burden. Lifeless ways (in an organic sense) include roadways, railways, airways, waterways, pipeways, and space ways. EXPLANATION : All the ways of transportation follow four broad mediums for passage : 1. 2. 3. 4. Air Land Water Space

Roadways and Railways constitute main forms of transportation on land. Ocean going ships and boats/ streamers in inland lakes/rivers/canals form main type of water transportation. Aeroplanes, helicopters, balloons, cable trolleys, and missiles are the principal types of air transportation. Of late, Space transportation has assumed significance, too. It takes place through space shuttles, space crafts and orbiters/satellites mainly. Gaspipes, Oilpipes and Water pipes are the base of pipe ways kind of transportation

FLOW CHART SHOWING MODES OF TRANSPORTATION :

TRANSPORTATION MODES

ANIMATED

INANIMATED

HUMAN BEINGS

BEAST OF BURDEN

Roadways

Railways

Waterways

Airways

Spaceways

Pipeways

7.11 CHARACTERISTICS OF DIFFERENT MODES OF TRANSPORT 1. INTRODUCTION : First of all, let us understand what we mean by the term Characteristics of different modes of transport. It means special features which are peculiar only to a particular type of transport . These features may be advantageous or positive and disadvantageous or negative. 2. CHARACTERISTICS : i. AIR : Following are the chief characteristics of air transportation : a) POSITIVE/ADVANTAGEOUS : 1. It saves time, because it allows travel at very high speeds as compared to other modes of transportation like water or land. 2. It helps follow great circle routes on the earths surface, since there are no obstructing features of the earths surface. 3. In times of emergency like floods, this is the only mode available to transport relief materials.

4.

It does not requires maintenance of a large network of infrastructural facilities like roads, water ways, canals, etc.

5.

It can sometimes take advantage of prevailing winds to achieve speed just as in case of jet streams.

6.

Its very useful in transporting perishable ,delicate and high value small items.

7.

Its very useful during war times to quickly transport troops and attack enemy posts with lethal effect.

b)NEGATIVE / DISADVANTAGES : 1. 2. 3. Its very costly and out of the reach of the common people. Its operational and maintenance costs are astronomical. It is ineffective during bad weather which sometimes creates problems of visibility to aircraft causing crashing of planes. 4. 5. It requires highly trained and skilled people to drive the Aeroplanes. It is the most risky mode of transport ,because even a slight mistake by a fraction of second may lead to pilot error causing crashes leading to violent deaths of passengers. 6. 7. 3. A) Its very costly as regards low value bulk items. Aeroplanes are easy targets by terrorists. ROADS : POSITIVE /ADVANTAGES : 1. 2. 3. Its cheap over short distances on land. It can be followed on foot, too. It does not require construction of costly infrastructure like Aerodrums. Simply, any piece of land on which a vehicle can be parked is sufficient. 4. 5. It helps in direct delivery of products at the door-step of the consumers. The transporter can earn profit on return journey by bringing products back from destination even if on low charges, because the cost of plying vehicle to and for already is recovered from the original customer. B) NEGATIVE/DISADVANTAGES : 1. Inaccessible and remote physical terrain discourages land transport.

2.

It may get badly affected and rendered useless during natural hazards like floods, earthquakes.

3.

Its costly over long distances as compared to sea and rail transport, because the cost of wear and tear outweighs the benefits of spread of economies of scale.

4.

Unlike sea and air mode, land transportation requires a vast network of good metalled and motorable all weather roads.

5. 2.

It requires continuous maintenance of roads.

WATER : Sea, Lakes, Rivers, Canals WATER BODIES : A) 1. POSITIVE/ADVANTAGES : It is economically very cheap over long distances as compared to other modes, because there are no maintenance costs of routes involved. 2. 3. It is suitable for transporting low value-high volumes commodities. It can ma ke use of prevailing wind directions to cut down costs on fuels, i.e.; sailing from Europe to USA under the influence of North Eastern trade winds and then sailing back to Europe under the influence of prevailing south westerlies. 4. Tunnels under sea bed can be constructed to make travel easier, i.e., tunnel beneath ocean between France and U.K. has made the travel easier. A plan to link Spain and Morocco by building a tunnel (39 km long) 400 meter below sea level under the strait of Gibraltar already has been drawn up. Point Paloma (Spain) and Malabata (Morocco) are chosen sites .It is 300 metre below sea level at its deepest point and would cost us $ 8 billion (1996 estimate). 5. The coefficient of friction on water is small as compared to road and rail. One horse power can move 4,000 kg on water ,150 kg on road and 500 kg on rail.The ratio for road,rail and water transport is 3:10:80 respectively.Therefore, water transport is the cheapest. 6.

B)

NEGATIVE/DISADVANTAGES : 1. It requires good natural or artificial harbours and ports to drop anchor at. 2. Increased sedimentation at the mouth of river channels makes inward navigation from sea quite difficult. 3. Sudden oceanic upheavals like storms such as hurricanes, tornadoes may break or sink vessels into the ocean. 4. It takes a very long time to cover greater distances from origin to destination as compared to Air transportation. 5. In times of Crisis, getting help becomes very difficult despite advanced instruments abroad like , etc., as compared to disasters in case of Road or rail transport.

7. A)

RAIL : POSITIVE/ADVANTAGES : 1. It is placed midway between road and sea transport as regards transport cost, whether over short or long run haul. 2. It does not face problems like traffic congestion as faced sometimes by road transport over busy routes and crossing. 3. It provides employment to large number of people, i.e., the Indian railway the 4th largest in the world is the biggest employer in India.

B)

NEGATIVE/DISADVANTAGES : 1. 2. 3. 4. It requires heavy initial investment and infrastructure. It has a long gestation period. It cant do door delivery like Truck-farming . One cant stop train enroute like Buses and board or alight down as wished. 5. A train stops generally at specified marked stops called railway stations and not anywhere else. 6. Higher energy is consumed for pulling coaches/wagons on steep slopes. One foot increase in height every 100 feet is called one per cent grade. At one percent grade, railway engine is able to pull up

only 1/5th of the load it can pull on a plane surface. Thus, sometimes two engines have to be used to pull the train. Andes mountains have a 4 percent grade! 7. It requires digging of tunnels across non-negotiable mountains. It is very costly. (5) SPACE SHUTTLES/SPACE CRAFTS :

In future, space crafts are likely to transport human beings/commodities, etc. to other planets and heavenly bodies like moon once colonisation of these celestial spheres takes place. A. POSITIVE/ADVANTAGES :
1. It makes easy to transport goods, and human beings to far distance heavenly bodies like Moon. 2. 3. It makes easy the space travel. It helps put in sky the artificial satellites useful to human beings like Remote sensing satellites , etc.

B.
1. 2. 3.

NEGATIVE/DISADVANTAGES :
Its economically a very costly affair. It requires highly complicated crafts and sophisticated technology. It carries a high degree of risk of failure. There are little or no chances of human survival aboard a space craft, if it fails in space.

4. (6)

PIPE WAYS :

Pipes have emerged as an important way of transportation. This mode of transportation helps in carrying gas, oil and water over a large distance.

A.
1.

POSITIVE/ADVANTAGES :
It is one of the best, efficient and economically cheap way of transporting liquids across great distances.

B.

NEGATIVE/DISADVANTAGES :
1. 2. 3. It is very costly to build, operate and maintain. It carries high risk. Pipelines under ocean can easily be tempered with without any one having to bear responsibility for it.

4.

Oil pipelines often face political problems, i.e., Iranian gas pipeline to India through Pakistan found it difficult to take off due to unfriendly relations between these two later countries.

(3)

SIGNIFICANCE :
A deep knowledge of different modes of transportation and their characteristics is quite significant on many counts:

1.

It helps in building the best possible efficient transportation network for a given area or a region by utilising the strengths of different modes and avoiding their inherent weaknesses. For Example, by constructing Suez and Panama canals, human beings have taken advantage of water transportation in terms of its cheap costs. Suez canal has helped connect Atlantic Ocean via Mediterranean sea to Indian Ocean via red Sea. Likewise, Panama canal has connected eastern pacific ocean with Western Atlantic Ocean. This has saved thousands of kilometers of sailing around the cape of Horn, the southern tip of south America. This means

saving in fuel and other costs.


2. It helps a lot during times of crisis like natural hazards, war, epidemics, etc. by timely rushing in of aid, relief material and other kind of logistics support. 3. It helps expand frontiers of human knowledge, skills, and abilities far beyond the planet earth. 4. It helps in exploitation of natural and human resources of a given place or region by providing appropriate and efficient modes of transportation.

5.

It helps avoid building uneconomical transportation systems. For example, in high mountainous regions, road transportation is more economical than rail transport.