Economic Development Unit – Case Studies
For this unit you will need to know 5 case studies.
In the examination you will 1 case study to answer.
Economic Development
1. An Aid project in an LEDC

Farm Africa
2. An LEDC to illustrate the factors that affect location of different types of economic activity

Kenya
3. An MEDC to illustrate the factors that affect location of different types of economic activity

UK
4. An Multi-National Company investment in a particular area in an International Context

Nike, Vietnam
5. Specific development where conflicts exist between economic development and environmental
damage

Deep Water Horizon Oil Spill, Gulf of Mexico
Case Study questions.
Name an MNC and one country where it operates. Explain why the MNC operates in many countries
and explain how this MNC affects the country you have named. Include at least three developed
ideas. (2014)
Name and locate an economic activity. Describe how this economic activity has caused environment
damage. How has this conflict between economic development and the environment been managed.
Include at least three developed ideas. (2013)
Name and locate an example of an economic activity in an LEDC which you have studied. Explain the
factors which influence the location of this economic activity and describe its effects on people in
the local area. Include at least three developed ideas. (2013)
Name the LEDC and aid project. Describe the main features of the aid project and explain how
sustainable the project is. Include at least three developed ideas. (2012)
Name a multi-national company and one country where it operates. Explain how the multi-national
company affects the local people and the economy of that country. Include at least three developed
ideas. (2012)
Aid Project in an LEDC – Farm Africa
Project 1: Rural Women’s Empowerment
Region: Various across Ethiopia
Problem: there are very few opportunities for Ethiopian women to make money. This means they have a low
quality of life and struggle to afford things like healthcare.
What is being done: women are giving training and livestock to start farming. Loan schemes have been set up to
help women launch small businesses like bakeries and coffee shops. Women have been given legal training to
advise other women of their rights.
Helping: around 15,160 people
Sustainability: once the new businesses have been set up they’ll continue to grow and make money. This means
that money will be available as a future resource.
Project 2: Prosopis Management
Region: Afar
Problem: Prosopis, a plant introduced by the government to stabilise soil has become a pest – it invades grazing
land making farming difficult.
What is being done: Farmers are shown how to convert prosopis into animal feed. The animal feed is then sold,
generating a new source of income.
Helping: around 4400 households
Sustainability: once the farmers have been taught hi new technique they’ll be able to carry using it. This means
money will be available as a future resource.
Project 3 –Community Development Project
Region: Semu Robi
Problem: Frequent droughts make farming very difficult. This reduces the farmer’s income and can lead to
malnutrition. Semu Robi is a remote region, so getting veterinary care for livestock is difficult.
What is being done: people are given loans to buy small water pumps to irrigate (water) their farmland. This
reduces the effects of drought. People are trained in basic veterinary care so they can help keep livestock
healthy.
Helping: around 4100 people
Sustainability: the project means more people are able to farm more crops and animals. This means they can
earn more money. But if too much water is used there won’t be any left for other people.
Project 4- Sustainable Forest Management
Region: Bale
Problem: forests are cut down and to make land for growing crops and grazing livestock. Trees are also cut
down for firewood. This reduces resources for future generations.
What is being done: communities are taught how to produce honey and grow wild coffee. These are then sold,
so people can make money without cutting down trees. Communities are also taught how to make fuel-efficient
stoves that use less wood. This also reduces deforestation.
Helping: around 7500 communities
Sustainability: less deforestation means there’ll still be trees for future generations. Also, people can make
money themselves by selling the coffee and honey.
Primary
Lots in the west.
They produce coffee, tea,
tobacco and fruits.
The area has good soil and
rainfall.
Tertiary
Strong in the rift valley as
there is lots of National
Parks and lakes.
Primary
Lots in the north east.
They rear livestock such as
cattle.
The area is too hot and dry
to grow crops but suitable
for grazing.
Tertiary
Strong on the coast
because of the beaches.
Secondary
Lots of manufacturers in
Nairobi.
They produce clothes, food
and drink.
The area has good
transport links and a good
labour supply.
Secondary
There are cement works in
the coast.
They use the limestone
from nearby deposits as a
raw material and can then
ship it easily.
Quaternary
Electronic companies locate
in the lowlands of Scotland
because of local highly
skilled workers and nearby
universities of Glasgow and
Edinburgh.
Secondary
Chemical works found in N.E.
England as they are near to
the raw materials from the
offshore oil fields
Primary
Tertiary
Strong tourist numbers in
Cumbria due to the scenery
Farming in Lincolnshire because of
good soil, mild climate and flat land
which makes it easy to use mechanical
equipment.
Secondary
Government grants given encouraged
car manufacturers to Merseyside e.g.
Jaguar were given £50million
Tertiary
Quaternary
Many high technology industries
locate along the M4 corridor. Close
to the universities of Oxford and
Reading that provide skilled workers.
Excellent transport links.
Lots of shops in London because
there are plenty of customers
and excellent transport routes
for the delivery of the goods.
Nike is the world's leading supplier of sports
footwear and equipment. The company was
founded in 1972. The company name comes from
the Greek word for 'victory'. Nike does not make
any shoes or clothes itself but contracts out to
factories in LEDCs.
These subcontracted companies then
act on their own and re-subcontract
their operations in other Asian
countries that give low wages and
have no employment laws. E.g.
Vietnam, The Philippines and
Indonesia
The average pay at a
Nike factory close in
Vietnam is $54 a
month, 3x higher
than other jobs.
The numbers…
Yearly revenue of $19.2 billion (2009).
Products in 140 countries.
Contracts to 700 factories in 45 countries.
Employing 800.000 people in the supply chain.
Nike has 34 factories in Vietnam
It makes 75 million trainers there per year.
In 1998 Nike changed the
minimum age requirements
to 17 yrs
Negatives of Nike
-
Sweatshops
Child labor.
Hazardous working conditions
Below subsistence wages.
Measures taken by Nike
Code of conduct.
Decommissioning.
Auditing tools and task
force.
Why do Nike operate in other countries?
•
•
•
Levels of tax varies from country to country
Cheaper to transport finished product if factories
located around the world
Labour laws can vary from country to country
Nike have hired independent auditors to make sure that
the company subcontractors are living up to Nike’s code
of conduct.
A case study of a specific development where conflicts exist between
economic development and environmental damage.
Deep Water Horizon Oil Spill, Gulf of Mexico
On the 20th April 2010, the Deepwater Horizon
Offshore oil rig exploded in the Gulf of Mexico.
 It killed 11 workers and the oil spill became
the biggest & most expensive environmental
disaster in the history of the USA.
 Estimated 1 Billion litres of oil was lost
Economics in the area
 Oil production along the Gulf of Mexico (23% of US production located there
providing jobs and wealth to the area)
 Tourism along the gulf states which communities are very heavily reliant on
 Fishing communities – generations of families who have relied on fishing as a way of
living
Economic effects:
 The government asked for $20 billion in damages from BP and BP's share price fell.
 Local industries, such as fishing was threatened. There was a ban on fishing in the
water.
 Tourism declined, fishing trips cancelled
 Total cost of environmental clean-up and fines could exceed $50 billion
Environmental effects:
 Plants and animals were completely covered in the oil. Seabirds, sea turtles and
dolphins have been found dead.

Oil that entered wetland areas meant recovery would be slow.

Fish stocks were harmed, and productivity decreased.
Social effects:
 Oils washed ashore and smoke particles travelled onto the land
 200 miles heavily oiled polluting particles increased in the air
 Birds, fish & animals killed
Management to reduce the environmental impact.
 Health and Safety regulations to monitor the extraction of oil
 Buoys put in place to stop the movement of oil
 Birds and animals treated in BP ‘sponsored’ centres