UPSC MainsGEOGRAPHY-PAPER-II201510 Marks150 Words
Q15.

Mono-functional towns are economically vulnerable. Discuss.

How to Approach

This question requires a discussion on the economic vulnerabilities faced by towns specializing in a single industry or function (mono-functional towns). The answer should define mono-functional towns, explain the reasons for their vulnerability, and illustrate with examples. Structure the answer by first defining the concept, then detailing the economic vulnerabilities, followed by examples, and finally, suggesting potential mitigation strategies. Focus on the interconnectedness of economic factors and the impact of external shocks.

Model Answer

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Introduction

Mono-functional towns are urban settlements primarily reliant on a single economic activity, such as mining, manufacturing, or a military base. These towns often emerge rapidly around a specific resource or industry. While they can experience initial economic booms, their dependence on a single sector renders them exceptionally vulnerable to economic fluctuations and structural changes. The decline of that core industry can lead to widespread unemployment, population decline, and overall economic stagnation, posing significant challenges to regional development and stability. This vulnerability is increasingly relevant in the context of globalization and technological disruption.

Understanding Mono-functional Towns and Their Vulnerabilities

Mono-functional towns lack economic diversification, making them susceptible to a range of economic shocks. This vulnerability stems from several interconnected factors:

  • Demand Shocks: A decline in demand for the primary product or service can severely impact the town’s economy. For example, a fall in global coal prices can devastate a coal-mining town.
  • Technological Changes: Automation and technological advancements can render the core industry obsolete, leading to job losses and economic decline. The decline of textile mills in many British towns exemplifies this.
  • Resource Depletion: Towns reliant on non-renewable resources face eventual decline as the resource is exhausted. This is common in mining towns.
  • Policy Changes: Government policies, such as changes in subsidies or environmental regulations, can significantly impact the viability of the core industry.
  • Lack of Skill Transferability: The workforce in mono-functional towns often possesses specialized skills that are not easily transferable to other industries, hindering their ability to find alternative employment.
  • Limited Infrastructure: Infrastructure development is often geared towards supporting the dominant industry, leaving other sectors underdeveloped.

Examples of Economically Vulnerable Mono-functional Towns

Several examples illustrate the economic vulnerabilities of mono-functional towns:

  • Jharia (India): A coal-mining town in Jharkhand, Jharia faces severe environmental and economic challenges due to coal fires and declining coal production. The town’s economy is almost entirely dependent on coal mining.
  • Detroit (USA): Once the heart of the American automobile industry, Detroit experienced a significant decline following the restructuring of the auto industry and the shift of manufacturing to other regions.
  • Port Talbot (UK): A steel-making town, Port Talbot has faced repeated threats of closure due to the decline of the British steel industry and global competition.
  • Singrauli (India): A power generation hub in Madhya Pradesh and Uttar Pradesh, heavily reliant on coal. Fluctuations in coal supply and environmental regulations pose risks.

Mitigation Strategies

Addressing the economic vulnerabilities of mono-functional towns requires a multi-pronged approach:

  • Economic Diversification: Promoting the development of new industries and sectors to reduce reliance on the core industry. This can involve attracting investment in tourism, renewable energy, or service industries.
  • Skill Development: Investing in education and training programs to equip the workforce with skills that are transferable to other industries.
  • Infrastructure Development: Improving infrastructure, such as transportation and communication networks, to attract investment and facilitate economic diversification.
  • Government Support: Providing financial assistance and incentives to businesses that are willing to invest in mono-functional towns.
  • Regional Planning: Integrating mono-functional towns into broader regional development plans to promote collaboration and synergy.

Table: Comparison of Vulnerabilities and Mitigation Strategies

Vulnerability Mitigation Strategy
Demand Shock Diversification into non-cyclical industries
Technological Obsolescence Investment in R&D and workforce retraining
Resource Depletion Planning for post-resource economy; environmental remediation
Policy Changes Advocacy and stakeholder engagement

Conclusion

Mono-functional towns, while often born from economic opportunity, are inherently vulnerable due to their lack of diversification. Addressing this vulnerability requires proactive planning, strategic investment in skill development and infrastructure, and a commitment to fostering economic diversification. Ignoring these challenges can lead to long-term economic decline and social unrest. A holistic and integrated approach, involving government, industry, and local communities, is crucial for ensuring the sustainable development of these towns and mitigating their inherent risks.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Economic Diversification
The process of shifting an economy away from a single income source toward multiple sources to mitigate risk.
Core Industry
The primary industry upon which a mono-functional town’s economy is based; often a resource extraction or manufacturing sector.

Key Statistics

According to the 2011 Census of India, approximately 20% of the urban population resides in towns with a concentration of employment in a single industry.

Source: Census of India, 2011

The share of manufacturing in India’s GDP has remained relatively stagnant at around 15-16% over the past decade, highlighting the need for diversification and structural reforms. (Data as of 2023)

Source: National Statistical Office (NSO), Ministry of Statistics and Programme Implementation

Examples

Rust Belt (USA)

The Rust Belt region of the United States, encompassing states like Pennsylvania, Ohio, and Michigan, experienced significant economic decline due to the decline of manufacturing industries, demonstrating the vulnerability of mono-functional economies.

Frequently Asked Questions

Can mono-functional towns ever truly overcome their vulnerabilities?

While complete elimination of vulnerability is difficult, strategic diversification, investment in human capital, and proactive regional planning can significantly reduce risks and foster long-term sustainability.

Topics Covered

GeographyUrbanizationEconomyUrban PlanningRegional ImbalanceEconomic Diversification