Japan – United Arab Emirates Economic system Essay
Japan – United Arab Emirates Economic system
The economy of a country is hugely pegged on Energy and Agriculture among other facets that characterize the growth of an economy. Energy is the dynamic indicator of the developmental level of countries. Eastern Asian countries are currently at acceleration in economic growth. Energy has been a key factor especially on the issue of renewable energy versus the crude oil use in fueling these economies. The UAE is currently contemplating the development of peaceful nuclear power energy that will be safe and secure. In fact, the US supports the UEA nuclear energy use. Japan imports 99% of its crude oil.
Japan’s dependence on imported Fossil oil illustratively shows that in 2001, 50. 1% of all energy sources came from oil, 16. 8% from coal and 13. 6% from natural gas while nuclear energy contributed 14. 4% of all of Japan’s energy needs (ENS, 2006). Thus, due to the above shortcomings, Japan had to seek a new energy source and this led to adoption of renewable energy. The country is a leader in wind energy, solar energy and hydro energy. In fact, the country hopes that by 2020, about 20% of its internal energy use ought to be sourced from renewable energy sources.
In the event of oil depletion, UAE should be ready to choose between nuclear or renewable energy and at the same avoid Japan’s previous mistakes. Agriculture in UAE and its uniqueness This sector in UAE includes the populous fishing which was a non-critical part of the economy contributing less than 2% of the GDP in 1990s but now is a big part of the economy. For many years now, the demand for agricultural produce in UAE has been rising steadily (Al-Abed et al, 2006). In this manner, the availability of capital and the above stated demand have fueled the agricultural sector in the UAE.
The major farming areas include Diqdaqah in Ras al Khaymah, Al Awir in Dubayy, the coastal areas of Fujayrah and Falaj al Umm al Qaywayn among other widely recognized areas. In UAE, most of the farming land is pro-occupied by date palms (Al-Abed et al, 2006). These crops are cultivated in the arc of small oasis that constitutes the Al Liwa Oasis. The federal and the emirate governments are a fundamental force on the high proliferation of agriculture in UAE. This is because the government is widely known to offer about 50% subsidy on fertilizer and seeds among other farm inputs.
Moreover, loans are granted are offered by the same government to interested farmers for the purchase of machinery. a) Institutions that run Agriculture in UAE Agriculture in the once a desert UAE is more organized more than possibly other places that do not experience the advanced desert weather like conditions of UAE. This is due to the efficient and effective agricultural administrative units that run this now very recognized sector among government quarters. The UAE has over 40 agricultural extension units which are practicable (Al-Abed et al, 2006).
In addition, the UAE has numerous experimental farms and agricultural research stations. Illustratively, the number of farmers in the earlier years of 1970s increased from a mere 4000 to almost 20,000 in the late 1980s. In the late 1970s to mid 1980s, agricultural production increased in the UAE. The number has been increasing and could be at 200,000 currently. However, the UAE sometimes is forced to import most of its food requirements. For instance, in early 1990s, UAE practically imported 70% of its food requirements. )
Challenges of farming in the UAE Despite the above lucrative figures on the kind of farming in the UEA, the region faces a daunting number of challenges than other traditional agricultural areas like Brazil and the US. The lack of arable land, high temperatures, regular locust swarms and quite unpredictable water sources are major set backs for agriculture in the UAE (Al-Abed et al, 2006). For instance, the contraction of the arable farm land is linked to the drying of underground aquifers, a reason why water tables are continuously lowering.
The decreasing water tables have an astounding impact on the increasing the salinity of soils and water making farming an unprofitable economic activity (Hurreiz, 2002). The increased creation of more farming areas is also credited with increased clearing of land to farm, a contributor to increased loss of surface water. This has unfortunately forced some farms to close down. In the 1980s, a federal authority was created to control the exploration of underground water through boreholes though many farms have continuously opted for the same to supplement any aquifer waters. c) Variety of agricultural products in the UAE
The agricultural sector possibly supplies the country with significant amount of main vegetable crops. The main vegetables that the agricultural arable farming produces include Tomatoes, Cabbages, Cauliflower, Squash and eggplant. It is at Ras al Khaymah that most of the vegetables that support the country’s vegetable supply come from. As mentioned, date palms are grown in the UAE. Other fruits include citrus fruits and Mangoes. Illustratively, a canning plant in Al Ayn has a capacity of processing 120 tons a day (Hurreiz, 2002). For instance, in 1989, poultry farms provided about 70% of local requirements for eggs and 45% of poultry meat.
In 1991, over 73,000 tons of milk was processed, meeting 92% of the country demands. d) Government efforts in Promoting Agriculture in UAE The government supports traditional fishing in the rich waters off the UAE. This is a major effort in raising livelihoods. Moreover, the government provides a 50% subsidy on fishing boats and equipment and has further built marine workshops that provide free repair and maintenance of boats. Cooperatives assist fishermen in marketing the fish. Agriculture in Japan and its uniqueness In Japan, agriculture and arable farming is less highly developed in comparison to Brazil or the US.
In fact, about only 15% of the country’s land is cultivatable. In Japan, the sector is highly subsidized and protected by the government. Agriculture, fishing and forestry historically have tended to dominate the country’s economy until the 1940s. For instance, in 1945, the industry provided employment for about 50% of the work force (King, 2004). The number has been contracting greatly to about 7. 2% in 1988. Food control policy in the 1950s that assured farmers get high prices from selling to the government increased farmer’s involvement in farming. Livestock farming is minimal in Japan.
The desire to get involved in beef farming was as a result of the comparatively higher returns compared to the dairy sector. The dairy sector is more developed in Hokkaido, Iwate, Tohoku and Kyusu. a) Fishing in Japan Historically, Japan is known as a world leader in the industry. For instance, in 1989, the country was second to China in fish production with 11. 9M. The tonnage for the production has been steady over the years (King, 2004). Tsukiji fish market in Tokyo is the hub for Japan’s fishing industry and is among the world’s leading markets for fresh, frozen and processed seafood.
In Japan, fish farming technology is highly advanced and involves aquaculture and sea farming. The country has above 2000 fishing ports which include among others Nagasaki, Kushiro, Otaru and Abashiri (King, 2004). Comparable features in Agriculture in Japan and UAE First, the two countries have intense reliance on fish farming. Though the Japanese have extensive inland and overseas fishing projects, UEA has mostly artificial internal fishing projects. Secondly, the governments of Japan and UAE have played a key role in accelerating Agriculture in their respective countries (King, 2004).
For instance, while UAE provides up to 50% in capital, Japan’s government has a protective and subsidized sector. Another common feature is that in the two counties, agriculture is not recognized as a huge contributor to the GDP. The two countries further have a number of agricultural products. Overview of Nuclear energy Nuclear power plays a vital role in the food and agriculture sectors, medicine and power generation. Nuclear power has the same structure like other power plants but differ in that they utilize energy from nuclear fission to produce electricity.
The energy is very clean if well designed, well built, operated and managed. On vital aspect of this type of energy is that it lacks atmospheric emissions or pollution, it is compact and produces less wastes which is confined and self degradable. History of Nuclear energy use in UAE Since independence in 1971, the UAE took great interest in achieving a high economic growth and urbanization. This has made the traditional sources of energy including oil and natural gas to quadruple in the last 20 years making UAE’s energy consumption per capita income the highest in the world.
This ideally meant that carbon emission increased double fold and escalated 10 times that emitted by developed countries and the global annual emissions respectively (Kazim, 2007). In order to avoid over reliance on oil as was the case with Japan, UAE has sought international cooperation and assistance in developing renewable energy as well as nuclear energy. In January 2009, Japan and UAE signed a bi-lateral cooperation with US in developing non-proliferation, secure and safe use of nuclear energy (Khaleej, 2009). Additionally, the UAE signed a similar agreement with UK and Japan.
The Japan Nuclear bi-lateral nuclear agreement is a three year contract starting 2008. The Middle-Eastern country is emerging as a leader in the use of nuclear energy. UAE is planning to establish nuclear plants that will see it meet a power demand of up to 40,000 MWe by 2020 (Burgermeister, 2009). This move is a major shift in avoiding polarizing as economy dependent on oil Energy which is sensitive to fluctuations in Oil prices. The Japan-UAE nuclear cooperation entails Japan assisting the UAE in facilitating the use of nuclear power.
Secondly, the training on nuclear skills, infrastructure and human resource development and assistance in nuclear safety are other areas of Japan’s aid to UAE (Khaleej, 2009). In addition, aid will be provided in protection and radioactive waste management as well the protection of nuclear sites. Free Energy use in UAE The UAE is a key pillar in the renewable energy sector. The country has been bidding to host the International Renewable Energy Agency (IRENA). IRENA which is comprised of 78 countries was formed in January 2009.
The body has on its charter plans to lead its member states in uniting in distributing knowledge, initiating and implementing development frameworks and leading the world to adoption of renewable energy (Khaleej, 2009). For UAE to become the headquarters, it has to demonstrate leadership in free energy use in the world. This is a seat that could go to a developing country like UAE. By hosting IRENA headquarters, it shows the world that UAE in sharing knowledge and expertise in renewable energy. UAE is posed to become the next leader in solar energy.
Fossils fuels are depleting at a faster rate than new ones can be created. UAE is aware of this and in a move likely to prevent it from making the mistake Japan did, it is leading in investing heavily in free energy sectors of electricity, wind energy, Nuclear energy and solar energy (Middle East Electricity, 2009). UAE is widely expectant that demand in future can out strip supply (Dahl, 1999). Therefore currently, the authorities in the Middle East are getting forced to review their energy policy in a move is directed at founding more assurance in renewable energy sources.
The move to invest in renewable energy sources is in line with assurance of energy sources in case fossil fuel deplete is coupled with the need to invest in fuels that either emit less green house gases (Burgermeister, 2009). Nuclear energy for instance is environment friendly provided that it is well operated, managed and secured. In fact, the UAE has a great potential to exploit wind, water and photovoltaic power. Ideally, given the unrivalled expertise in hydrocarbons, the UAE is the possible world leader in renewable energy and environment caring. In deed, Abu Dhabi’s Masdar city plans to spend $ 2 billion on solar technology.
Moreover, Abu Dhabi is investing $15bn in a hydrogen plant (Middle East Electricity, 2009). For Saudi Arabia, it is planning to become a leading research center in solar energy and possibly an exporter of solar related technology. UAE holds almost 8. 5% and 3. 3% the world’s oil and natural gas reserves but plans to invest about $10 bn to advancing renewable energy incase of depletion of fossil (Burgermeister, 2009The History of Nuclear power use in Japan Since 1956, Japan has been on a pathway to reducing its reliance on overseas energy sources through progress in Nuclear power use to provide energy for its production units (Pikket, 2002).
The country’s commitment is seen in the various treaties that it has signed with other countries. Ideally, there are social issues that challenge Japan’s pursuit of nuclear power. The future of Japan’s Nuclear power is further complicated by domestic and international pressures to enhance safety and security (Kazim, 2007). However, the pursuit was generally fueled by the 1970s oil crisis. In Japan, the environmental problems resulting from energy production, conversion and utilization have increased the awareness in possibly all sectors ranging from public, industry and government (Dahl, 1999).
The risk of climate change and the desire to move to a cleaner fuel was one reason towards a shift from reliance on crude oil. Japan discovered that large nuclear plants were both technologically and economically most reliable techniques of replacing fossil fuel over-reliance in production of electricity (Pikket, 2002). Similarity of Japan and UAE on Nuclear Energy Despite the above different historical development on the use and proliferation of Nuclear energy, the two countries faced intense domestic and international pressure to ensure that they comply with the set regulations on the use of the Nuclear energy (Kazim, 2007).
For instance, Japan was required to assure that it’s over populated nation would be safe from the emissions of uranium. Secondly, the two nations use the technology to reduce over reliance on fossil fuels (Al-Abed et al, 2006). Crude oil prices have a fluctuating characteristic that puts many nations that basically depend on it at jeopardy should an increase in prices increase. The 1970s oil crisis serves to remind all nations how dependence on oil can really affect economies (Kazim, 2007).
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 16 October 2016
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