Question

2. a) Explain with examples the concepts of the economic and physical scarcity of a resource. b) Identify the sources of inefficiencies in the allocation of renewable resources like forests. c) Provide one case study demonstrating the effort towards efficient management of a renewable resource.

Answer 1

2.a)Physical Scarcity refers when demand for the resource use exceeds the supply of resource provision. Example--Water. In Arid and semi arid regions, physical scarcity of water is the main problem  

Economic Scarcity refers to inefficient, and lack of proper means, ways and technique to utilise for access and and use the resource . Example - there are lack of proper water use infrastructure so as to extract water. It also means lack of proper management of water resources.

2.b) Sources of inefficiency

• Natural : natural disasters like forest fire etc., soil fertility, management of biomass, acquifer depth impact the allocation of renewable resources
• Man made : technical backwardness, lack of means for proper resource use, lack of planning, mismanagement of resources etc. impact for the allocation of resources and inefficiencies.

2.c) Nepal, India, Brazil, and Indonesia have successfully implemented efficient management of renewable resource like forest through community forestry where local community is significant in optimal management of forest and land utilisation. Various stakeholders like local community government and NGOs play their conservative role in efficient management of forest. Decision making is decentralized which lead to balance between conservation and resource use leading sustainable management and sustainable development .