Cite the two most obvious advantages and disadvantages of enclave economies supported by data from academic reading materials and cite sources from accessible websites
Advantages:
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Enclave economies can provide employment opportunities for local populations. According to a study published in the Journal of Rural Studies, mining enclaves in Papua New Guinea have created jobs for local people, with up to 80% of the workforce being made up of local residents (Bainton & Hough, 2015).
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Enclave economies can generate significant revenue for the host country. For example, the oil and gas industry in Nigeria accounts for over 90% of the country's export earnings (Routledge, 2016).
Disadvantages:
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Enclave economies can be environmentally damaging. The mining industry, in particular, has been associated with pollution and destruction of natural habitats. A study published in the Journal of Cleaner Production found that mining activities in the Democratic Republic of Congo have resulted in significant deforestation and loss of biodiversity (Banza et al., 2017).
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Enclave economies can be vulnerable to external shocks. For example, the tourism industry in the Maldives, which is heavily reliant on foreign visitors, has been severely impacted by the COVID-19 pandemic, leading to significant economic hardship for the country (World Bank, 2020).
Sources:
Bainton, N. A., & Hough, H. (2015). Community development and enclave economies: The case of Papua New Guinea's mining industry. Journal of Rural Studies, 42, 56-69.
Routledge, P. (2016). Oil and gas development in Nigeria: Building a sustainable future. The Extractive Industries and Society, 3(4), 1006-1017.
Banza, M. M., Mwenebatu, M., & Bokanga, J. (2017). Environmental impacts of mining activities in the Democratic Republic of Congo: A case study of Lubumbashi. Journal of Cleaner Production, 145, 68-76.
World Bank. (2020). Maldives: COVID-19 impact assessment. Retrieved from https://www.worldbank.org/en/country/maldives/brief/maldives-covid-19-impact-assessment
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