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LECTURE:04 Industrialization & Sustainability M. A. Kamal, Ph.D Director General National Academy for Planning and Development

Industrialization & sustainability(L4)

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Page 1: Industrialization & sustainability(L4)

LECTURE:04Industrialization &

Sustainability

M. A. Kamal, Ph.DDirector General

National Academy for Planning and Development

Page 2: Industrialization & sustainability(L4)

Out Line

1. Introduction2. Sustainable industrialization3. Necessity of Industrialization4. Classification of Industries5. Challenge for industry6. Critical issues for industrialization7. The Sustainable Industrialization Triangle8. Innovation path9. The sustainable industrialization process10. Global trends and issues: Industrialization11. Global transformation of industrialization12. Technical Progress & sustainability13. Development & foreign borrowing14. Industrial Sustainability: Key Learning Principles15. Conclusion16. Farewell Call

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1. Introduction

1.1 "To be, or not to be" -- that is the age-old question, and civilization today faces its own dire version of it. As the negative social and ecological effects of 150 years of industrialization are becoming impossible to ignore, people are asking whether we can maintain our standards of living in future.

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2. Sustainable industrialization

2.1 Sustainable industrialisation is a long-term process of transformation towards a desired vision of an industrialised economy.2.2 It contributes to wealth creation, social

development and environmental sustainability.

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3. Necessity of Industrialization

3.1 Applying technological progress

3.2 Driving and diffusing innovation

3.3 Developing new skills and attitudes

3.4 Stimulating modern services

3.5 Internationalizing economies

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4.1 Resource-based industries ( processed food, wood, leather, refined petroleum & rubber products);

4.2 Low technology industries (textiles, garments, footwear, furniture, glassware, toys);

4.3 Medium technology industries (automotive industry, chemicals, metal products, machinery)

4.4 High technology industries (electronics, pharmaceuticals, biotechnology,

precision instruments, aerospace ).

4. Classification of Industries

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Industrial Industrial Environmental Environmental

Impacts are Impacts are affecting affecting

all spheres all spheres of life:of life:

Air

Soil

Biodiversity

Water

Marine &

Ground

Water

Climate

Change

provide affordable products with minimal environmental degradation

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6.1 POPULATION OF EARTHi) 2011 POPULATION ~ 6.93 billionIi) Population may reach in 2050, ~ 10 billioniii) Today, The richest 20% of population (1.2

billion) Consume 75% of energy and resourcesiv) Median member of top 20% consumes 20 x

that of median member of poorest 50% of population

6. Critical issues for industrialization

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6.2.2 Consumable Energy (nuclear)i) Fission power plants exist, fusion plants not yet. ii) Brings 10 billion people up to top 20% lifestyle?

Need 8,000 additional uranium plants Exhaust all uranium fuel in 10 years

iii)If we use breeder reactors Uranium then adds plutonium and thorium to

fuel cycle Uranium will last 700 years (2x life of coal)

6. Critical issues for industrialization

6.2 Crises of Energy6.2.1 Consumable Energy (fossil)

i) Oil Consumption 3x faster than discoveryii) Brings all people up to top 20%

lifestyle?iii) Exhaust coal, oil, shale, natural gas by 2050

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6.2.3 RENEWABLE ENERGY i) Solar power density = 1.36 kW/m2

Exo-atmospheric incident power densityii) Solar Electric costs 10X fossil electric

Price competition due to tax credits today Large Solar Plant reduces Biomass Large Solar Plant does not harvest Carbon

iii)Water power is developed in US Produces 1 to 6% of energy in US

iv)Wind power is developing Capable of ~ 1 to 12% of US base load

Hawaii now has wind capacity = 20% of base load

Peak capacity unusable due to inability to control v) Off Peak Storage remains a challenge

6. Critical issues for industrialization

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6.2.4 Crises of Resourcesi) Need Mineral Resourcesii) Need productive land on earthiii) Additional land needed for disposal

iv) Need money

6. Critical issues for industrialization

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7. The Sustainable Industrialization Triangle

Industrial innovation

Wealth Creation

Socialdevelopme

nt

Environmental

sustainability

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8.1 Innovation path

R&D Design Assembly and Manufacturing

Distribution Marketing

Source: Ministry of Industry and Trade of Malaysia (1996)

Valu

e ad

ded

by w

orke

r

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8.2 Design for “R”

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High Tech

8.3 The industrial innovation path

Medium TechLow TechResource based

Low value added segments

High value added segments

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9. The sustainable industrialization process:

The High Road to compete

9.1The path to a sustainable industrialization is for firms to compete through innovation; the alternative is to compete through lower wages and standards or through currency depreciation ;

9.2To innovate means to improve products and processes in existing industries; to compete in higher value added industry segments; and to enter in technologically more complex industries;

9.3In developing countries, the innovation process is usually based on the mobilization, adaptation and learning of existing technologies and management practices ;

9.4To innovate requires firms to up-grade their technological, managerial and marketing capabilities ; it is a risky and difficult process with important efforts of investment, research and

learning;

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10. Global trends and issues: Industrialization

10.1 Very high level of wealth creation and improvement in quality of life during the last 50 years but not everywhere and not for everybody.

10.2 Globalization of financial, trade, investment and knowledge flows

10.3 Rapid and accelerating technological progress with many applications for product and process technologies: ICT;

biotechnology; new materials; fuel cells; nano technologies etc…

10.4 Emergence of a global network society and new consumption patterns

10.5 Global governance with new international treaties, regulations and standards ( trade, quality, labor, environment, intellectual property rights, etc..) and new actors (global corporations, civil society, media)

10.6 However, alarming and unsustainable trends: poverty, environment, social development, economic marginalization,

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11. Global transformation of industrialization11.1 Globalization of product markets and research

characterized by complexity, uncertainties and changes. 11.2 New and difficult challenges for sustainable

industrialization: environment, social issues, poverty.11.3 key factors of success : price, innovation, quality,

flexibility, understanding and addressing local markets

11.4 New managerial and organizational processes and systems to design, produce and distribute products

11.5 New concept of industry: not only production but also design,, marketing, distribution and recycling

11.7 Globalization of value chains governed by MNCs and localization of the segments in specialized and localized clusters of firms which offer unique competitive advantages.

11.8 Rapid transformations of the world industrial map with the emergence of new and dynamic industrial centers in developing countries.

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12. Technical Progress & sustainability

12.1 Technical Progress :

Technological Progress (TC) is a term that is used to describe the overall

process of invention, innovation and diffusion of technology or processes. The

term is redundant with technological development, technological achievement,

and technological change. In essence TP is the invention of a technology (or a

process), the continuous process of improving a technology (in which it often

becomes cheaper) and its diffusion throughout industry or society

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12. Technical Progress & sustainability

Promise = Development = Progress

Eliminate Toil Eradicate Disease Prosperity Increase Lifespan Move Faster High Security Instant Communication Increased Consumption MORE is MORE….

12.2 Promise of the Science-Technology Enterprise

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12.3 Price of the Science-Technology Enterprise

i) Price = Impacts = Consequences

ii) Risks to Human Health• Endocrine Disruption• Cancer• Injury • Poisoning• Cognitive Impairment

iii)Urban sprawliv) Inequity v) Social Strife & War

12. Technical Progress & sustainability

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12.4 Inequities of the Science-Technology Enterprise

Marland, G., T.A. Boden, and R. J. Andres. 2003. "Global, Regional, and National CO2 Emissions." In Trends: A Compendium of Data on Global Change. Carbon Dioxide Information Analysis Center, Oak Ridge National Laboratory, U.S. Department of Energy, Oak Ridge, Tenn., U.S.A. Retrieved from http://www.globalwarmingart.com/wiki/Image:Global_Carbon_Emission_by_Type_png

12. Technical Progress & sustainability

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12.5 Technological Activity Exceeds: Nature’s Regenerative Capacity

Ricoh .(2007). Pursuing the Ideal Society (Three P's BalanceTM) [Image]. Retrieved from http://www.ricoh.com/environment/management/earth.html

Environmental Price

• Exhaustion of Resources• Water• Petroleum• Forests

• Biodegradation• Extinction • Deforestation• Ozone Depletion • Acid Deposition• Desertification• Eutrophication

12. Technical Progress & sustainability

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12.6 Striking a Balance: Between Technological Activity and the Environment

Ricoh .(2007). Pursuing the Ideal Society (Three P's BalanceTM) [Image]. Retrieved from http://www.ricoh.com/environment/management/earth.html

Changing the way we…Design & Engineer • DfE & DfR• Benign Design

Produce• Reduce rate of extracting &

harvesting materials• Increase efficiency• Eliminate waste, emissions,

& toxics

Consume & Use• Use local• Reduce, Reuse

Dispose • Recover & Reclaim• Recycle, Rot & Compost

12. Technical Progress & sustainability

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12.7 Levels of Technology Assessment

Personal

Organizational

National

International

Informs PolicyInforms Adoption

Scientific & FormalInformal

12. Technical Progress & sustainability

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13. Development & foreign borrowing

13.1 Foreign Borrowing has increased considerably in recent years owing to expenditure on large infrastructure development projects,

the financing of imports and loan repayments.

13.2 Foreign borrowing can assist in resolving constraints in foreign resources for development. It is a useful means of supplementing inadequate domestic savings for investment and undertaking large infrastructure projects that could enhance economic development over time. Incurring foreign debt of a reasonable extent for developmental objectives is an economic strategy for developing countries.

13.3 Foreign borrowing can assist countries stabilise their external finances and enhance economic growth.

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What are we teaching in technology education?

14. Industrial Sustainability:

Key Learning & Principles

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14.1 Systemic Nature: Systems are interrelated and interconnected, therefore human activities inevitably impact other systems in unexpected ways.

14.2 Equity and social justice: Access to the elements required for survival on this planet is an innate human right. All humans, including those generations to come, are entitled to clean air, water, land, housing, food, and health services.

14.3 Pollution and Toxics: Pollution and the production of toxics degrades human and environmental health, therefore the production of waste, pollution, and toxics should be eliminated or controlled.

14.4 Precautionary Principle: Technological innovations creates threats and risks to human health and the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically. The proponent of a technological innovation should bear the “burden of proof“ for presenting evidence of harmlessness. If this is not forthcoming, then a "no action policy” should be adopted.

14.5 Stewardship: All businesses, industries, governments, NGOs, & individuals have important responsibilities for the integrity of life-supporting systems.

Maintain the integrity of systems Consume and use responsibly Protect and restore ecosystems Protect human health, vulnerable populations, and communities

14. Industrial Sustainability:Key Learning & Principles

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14.6 Energy Efficiency

Energy Intensity is the amount of energy consumed per unit of service or activity. Embodied energy may be reduced by designing durable, adaptable products and buildings which are made from local, renewable materials.

Embodied Energy: “Embodied energy is the total primary energy consumed during the life time of a product, ideally the boundaries would be set from the extraction of raw materials (inc fuels) to the end of the products lifetime (including energy from; manufacturing, transport, energy to manufacture capital equipment, heating & lighting of factory...etc), this boundary condition is known as Cradle to Grave” (Jones, 2007).

Environmental Burden:

Renewability: Production activities should minimize the use of materials which do not regenerate at the same rate at which they are consumed, including from fossil fuels, minerals, long-lived plants, and declining populations of animals.

14. Industrial Sustainability:Key Learning & Principles

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15.1 Industrialization without sustainability has been known to cost the society in increasing inequality, poor living conditions for the poor, supposed scarcity of resources, etc..

15.2 In the future, mankind will look to achieve sustainability in all aspects of life, not so much because we will want to, but because we will need to.

15. Conclusion

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16. Farewell Call

“Rates of use of renewable resources do not exceed regeneration rates;

rates of use of nonrenewable resources do not exceed rates of

development of renewable substitutes; rates of pollution emission do not exceed

assimilative capacities of the environment.”

Herman Daly (1996)

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Thank you for your

attention