1. World problems
  2. Unstable economic base

Unstable economic base

  • Dissipating economic base
  • Archaic economic base

Incidence

The economy of some small communities may be based on one industry or activity, for example, mining. If in this case the mines are closed, the majority of the people may leave within months. If a number of residents, rather than deserting the town entirely, are determined to rebuild the community around new industries and business, then they face a number of difficulties. Agriculture and forestry may be looked at anew as basic industries. Profitable farming is difficult, because the products pass through many hands between the farmer and the consumer, and new techniques are only slowly obtainable. The closing of the mines means that local markets are even smaller than they once were; and external markets are competitive and over-powering. Government-organized forestry and reforestation may be a possible resource for the future, but few townspeople have skills in this field.

The unclear economic future discourages the use of what savings may have been accumulated by individual families before the mines closed. Many may feel the only solution is to seek employment and business development elsewhere. The task of renovating basic facilities to attract outside investments seems enormous. Services decrease and public buildings, such as schools, remain underheated. Development momentum virtually comes to a standstill and town income declines.

Broader

Aggravates

Aggravated by

Strategy

Value

Uneconomic
Yet to rate
Instability
Yet to rate
Dissipation
Yet to rate
Archaism
Yet to rate

SDG

Sustainable Development Goal #8: Decent Work and Economic Growth

Metadata

Database
World problems
Type
(D) Detailed problems
Subject
  • Economics » Economic
  • Societal problems » Instability
  • Content quality
    Presentable
     Presentable
    Language
    English
    Last update
    Oct 4, 2020