Economics little help

[Wassouf]

hello every1,

 

I have a little question that I wasn't able to find any answer for, and it is an economical question:

 

- Are there any environmental problems facing Indonesia and what are the likely economic consequences of there problems?

 

 

Any answer would be really appreciated,

 

 

Many Thanks,

 

 

 

Wassouf

[Ophiolite]

The most obvious one that I am aware of is the massive deforestation with its consequent extinction of species, destruction of ecologies, removal of a potentially renewable resource, as well as its impact on climate. (Not to mention the impact of the forest fires on health in Indonesia and surrounding states some years ago.)

The economic implications are:

• Elimination of a sustainable timber industry
  
• Suppression of the sustained development of a timber processing industry.
  
• Elimination of a potentialy massive tourist industry based upon the rain forest
  
• Suppresion of the devlopment of a pharmacalogical industry based upon rain forest species
  

Because these are all medium or long term benefits, they have been ignored in favour of the short term economic gains.

 

 

And since the more populous parts of Indonesia are on an island arc, we might expect vulcanism to come into play from time to time.

• Destruction of property and infra-structure
  
• Destruction of crops
  
• Loss of life
  
• Evacuation
  
• Medical and relief requirements
  

Edit: I'm also overlooking the obvious one of the industrial and transport related pollution. I was appalled by the deterioration in air quality in Jakarta when I re-visited earlier this year. The economic impact of that is the increased medical costs and the lost work days.

[Primarygun]

I just learnt about the factors of production

[Wassouf]

thanks for your answer ophiolite, but do u mind if you can give a breif description on each economic implication ?

 

many thanks,

[Ophiolite]

Salamat pagi , Wassouf. I have this uncomfortable feeling that I am writing a class exercise for you. (If this is not so, please tell me.)

 

I wont, therefore, answer your question, but I will show you how to answer it, with one example.

Let's consider the economic impact of the loss of a sustainable timber industry.

You should be able to find answers to all these questions from the internet.

What is the approximate total area of Indonesia that is (or until recently was) covered by forest?

What proportion of this is reasonably accessible? (Near the coast, navigable river, or road system). This one you will have to make an educated guess at.

How many mature trees are there on average in one square kilometre?

How long does it take a typical tree (of economic use) to grow to maturity?

What is the average value of one tree?

The answers to these questions will allow you to calculate how many trees might be harvested each year on a replenishment basis and hence the value of the industry that might have been.

[Wassouf]

No, you werent. I appreciate that great support, your answers were useful.

 

Thanks Again,

 

 

Wassouf