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Socio-economic impacts and natural resources management conflicts in the urban fringe areas


Pravakar Pradhan Research Associate,
Asian Institute of Technology,
Bangkok, Thailand
pravakar@ait.ac.th


Ranjith Perera
Assistant Professor and Coordinator,
Urban Environmental Management,
Asian Institute of Technology,
Bangkok, Thailand


Introduction
Urban development in Asia has dramatically changed in the last four decades. There has been a shift from primary sectors such as agriculture, fishing and mining to secondary and tertiary sectors through industrial growth and service provision accompanied by rapid economic development in many of the Asian developing countries (Douglas, 1995; Dahiya, 2003). In developing countries the relationship between urbanization and industrialization is not always clear. For example, industrial premises are established in the middle of agricultural land without any infrastructure base. Planned industrialization wherever present is only at an initial stage in most cities. This is also limited to industrial zoning instead of industrial estates. As a result the impact of urban development and industrial development on natural environment is very visible (Losada et al., 1998; Burgess, 2000).

The vulnerability of the peri-urban region is further complicated by the fact that it encompasses a large number of individual jurisdictions in term of local government and has both urban and rural characteristics. Each jurisdiction may have different administrative structures, laws and regulations. As no single authority is responsible for overall planning and management of a metropolis, an extended metropolitan area with mixed urban and rural characteristics is a complex phenomenon (Robinson, 1995; Aguilar and Ward, 2003). This complexity creates conflicts among the natural resources users of different sectors and government (Panayotou and Phantumvanit, 1991).

This paper probes into the conflict between development and the environment in an extended metropolitan area. It studies the relationship between urbanization, industrialization and the continuous exploitation of natural resources such as land and water resources, for non-agricultural use. Expanding human requirements and economic activities are placing ever-increasing pressures on natural resources, creating competition and conflicts. If in the future, human requirements are to be met in a sustainable manner, it is now essential to resolve these conflicts and move towards more effective and efficient use of existing natural resources.

The paper is based on a research study conducted in an adjacent province of Bangkok Metropolis in Thailand. Urbanization and industrialization in Thailand is predominantly concentrated in the Bangkok metropolitan region, which is located in the fertile flood plan of the Chao Phraya River. Over the years urban and industrial areas have been extended to the hinterland of Bangkok city. As a result, large portion of productive agricultural land and water bodies have been utilized for industrial use in the outskirts catering to about 80 per cent of all the nation's industries that are located in and around Bangkok (ADB, 2001). The unplanned development has not only affected the productivity of agricultural land but also poses serious problems to the local environment (Water pollution, soil degradation and conflict are of significant concern) and intensify the conflict between resources use in the area (Fazal, 2000). To analyze these problems, Pathumthani province was selected as a case study area as it is located in the fringe of Bangkok (see Fig 1). It occupies a total area of 1,525 square kilometers of plain land in the flood plan of Chao Phraya River, where the major landuse had been agricultural. The present landuse includes a combination of agricultural and industrial areas with other uses such as residential, educational, governmental office, golf courses and market places. There is no demarcation of industrial land in this province except few industrial estates. As a result urban areas and industrial zones are rapidly increasing in the province. This has happened mainly after the government made regulations to restrict the growth of new industries within the Bangkok city as prescribed by the Fourth Nation Plan (1977-1981). This has also lead to relocate some industries which were previously located in the capital city in the peripheral provinces. Contrary to the strict planning regulation enforced within the area governed by Bangkok Metropolitan Administration (BMA), the provincial governments have weaker planning control. As a result, there is a lack of zoning or policies to protect the highly productive agricultural land in Pathumthani, there has been a mushrooming of industrial premises, housing complexes and golf courses that are displacing agricultural land and misuse of existing natural resources (Mekvichai et al., 1990).


Fig. 1: Location Map of Study Area


Such unplanned urban development can have adverse impacts not only on rural agricultural landuse but also to the natural resources such as soil and water. In the case of Pathumthani, urban development is predominantly driven by industrial growth. In the mean time government has promoted foreign direct investment (FDI) for industrial manufacturing in the province (Dahlmen and Brimbel, 1990; Mephokee, 2001). It leads to change the quality and quantity of land and water resources for urban and industrial use. Thus, there is a need to address the existing impact of urban and industrial development on agricultural landuse in the context of natural resources management.

Economic Development and Natural Resources Management Policies and Plans
Thai economic diversification has happened through industrial development while increasing the productivity of the agriculture sector in the country. Thailand continues with a two pronged approach to development by consolidating on its agriculture base while pursuing the goal on an industrialized country. The Industrial Development Promotion Act has been introduced in Thailand in 1954. It has been gradually amended and Board of Investment (BOI) has been established to implement the provisions of this Act. It has provided a number of privileges and incentives to promote industries, such as tax exclusions, permission to own land for specific industries, permission to export industrial products, and others (Kritiporn et al., 1990). Nevertheless, no particular attention has been given to the question of industrial location or regional distribution of industries. This development practice has largely exploited and degraded natural resources and environment in the city. The government seriously recognized these problems by enacting first environmental law entitled “Enhancement and Conservation of National Environmental Quality Act B.E. 2518” in 1975. This Act has been amended number of times to strengthening its effectiveness in favor of nation. The latest amended Act is “Enhancement and Conservation of National Environmental Quality Act B.E. 2535” (1992) (http://www.onep.go.th/eng/about_onep_1.asp). To implement this Act effectively, government has formulated ‘Policy and Prospective Plan for Enhancement and Conservation of National Environmental Quality (1997-2016)’ and established three environmental organizations, namely, the Office of Natural Resources and Environmental Policy and Planning (ONEP), the Pollution Control Department (PCD) and the Department of Environmental Quality Promotion (DEQP) under the Ministry of Natural Resources and Environment (MONRE). These governmental organizations are further divided into several division and regional offices, which take charge of special natural resources and environmental concerns at national and provincial levels.

In the early stage, the national economic and social development plan has largely been based on the acceleration of economic growth with utilizing the natural resources to produce goods and materials. Due to this activity, the natural resources have been degraded in the country, and ecosystem functions of certain communities have been adversely affected (http://www.onep.go.th/eng/; and http://managingwholes.com/--ecosystem.htm). On those days, plans were only incorporated natural resources and environment management as part of development objectives, but latter government has specifically addressed workable guideline and procedure to manage natural resources and environment. The summary of National Development Plans and their focus on economic development and natural resource management are illustrated as below:

Table 1: National Development Plans with Comparative Analysis of Economic Development and Natural Resource Management
National Development Plans Economic Development Focus Natural Resource Management Focus
First Plan
(1961-1966)
Aimed to raise the living standard by developing economic condition. Emphasized to conserve and protect forest area.
Second Plan
(1967-1971)
Emphasis was placed on private sector involvement on nation development activities. Focused on problem solving process from central level.
Third Plan
(1972-1976)
Shifted its investment policy from import-substitution orientation to export-promotion industries. Activities designed to improve natural resource conservation and increase protection areas.
Fourth Plan*
(1977-1981)
Emphasized decentralization economic growth from the capital region to the provinces. Promoted on export-oriented industries. Attention was given to manage basic natural resources, such as land, forest, water and minerals and rehabilitate environmental condition
Fifth Plan
(1982-1986)
Development of the Eastern Seaboard Area as an industrial zone and Industrial Estates have set-up in the southern part of Thailand. Emphasized about the conservation of major natural resources like soil, water and forest.
Sixth Plan
(1987-1991)
Specified programs for development of urban and specific areas, in consideration of the principle of “distributing prosperity and strengthening justices”. Encouraged private, public and local authority to manage natural resources and environment. Improved the administrative system and organizations.
Seventh Plan
(1992-1996)
Reflected the importance of industrial development in the overall development of the country. Provided the natural management guidelines and authorities down to provincial and district levels.
Eighth Plan
(1997-2001)
Shifted from "growth" orientation to holistic "people-centered" development.Rehabilitation process took place with local participation.
Ninth Plan
(2002-2006)
Emphasized on balance development of human, social, economic, and environmental resources. Community-based management has been recognized to solve the problems on natural resources.
Source: NESDB, National Economic and Social Development Plans of Thailand.

*Fourth National Development Plan is a turning point for both industrial development and natural resources management sectors. This plan has spelled out the industrial decentralize policy from cities level to national level and has given emphasis on natural resource management.

According to the National Development Plans of Thailand, it seems that the government’s policies have encouraged industrial development in peri-urban agricultural fields, which leads to conflicts in landuse and degradation of the local environment. Beside these a serious issue is regarding the sharing of water for irrigation and industrial consumption and ensuring the treatment of effluent.

The rapid change of spatial as well as non-spatial characteristics in the fringe area of the big cities, make social, economic and environmental impacts (Allen, 2003). This paper attempts to analyze the consequences of urban and industrial development of Pathumthani province, which is also a fringe area of Bangkok Metropolitan Area (BMA).

The specific objectives of the research were:

  • To explore socio-economic impact after expansion of urban development in the fringe area.
  • To analyze the patterns of fringe development and industrialization and its effect on natural resources within decadal interval of time (1980-1990-2000)
  • To study the conflicts arising out of the process of urbanization and industrialization
Methodology
As stated above the Pathumthani Province of Bangkok Metropolitan Region was selected as the study area. The main reason for its selection is because it was the first peripheral province of the city to attract new industries including the first industrial estate in Thailand (Nava Nakhon Industrial Estate).

Collection of base information on social, economic and environmental parameters of the province as well as its districts was the first step of the research. Especially, the district level data (As disaggregate data at sub-district levels were not available, District level data was considered for analysis) was collected for analyzing industry led urban development and agricultural activities. A combination of landuse data (spatial data) and the socio-economic data (non-spatial data) were selected as major indicators for the study. The landuse data referring to the time line on a decadal interval of 1980, 1990 and 2000 were collected. For evaluation, the year of 1980 was treated as the baseline year because government has only introduced a new industrial decentralization policy in 1977, which has resulted the shifting of industries from inner city areas to the periphery. Pathumthani province has accommodated some of these relocated industries and newly established industries during the two decades since the introduction of this new policy. So the effects of urbanization and industrialization on natural resources were analyzed between ten year intervals (i.e. 1980 to 1990 and 1990 to 2000).

The spatial data was analyzed with the application of ARCVIEW GIS. Data adjustments were carried out to meet the objectives of the study. Some details are explained as follow:

  • Agricultural land, fallow land and water bodies were considered as major natural sources in the province. Similarly, urban and industrial areas were considered as a built-up area.
  • The urban and industrial’s impact on the natural resources were analyzed with comparing outcome maps of decadal interval, like 1980-1990 and 1990-2000.
  • Canal network and industrial locations were plotted together to point-out the more vulnerable location in the province.
The non spatial data like population, labour and income & expenditure of different fiscal years were also collected for analysis. Some related spatial and non-spatial data were also analyzed like population vs. urban and industrial growth, industrial growth vs. income & expenditures.

The interviews were carried out with concerned stakeholders to understanding the existing conflicting issues due to the expansion of urban areas and industries in the province. Some specific conflict issues related to landuse and water use were collected from the field level. The following section summarizes the findings from the study.

Findings
The study area is characterized by an extensive mix of agricultural and non-agricultural activities and exhibits both urban and rural features. This extended zone of development is a good example of what McGee (1991) calls ‘desakota’ (A term derived from two Indonesian words for Desa (village) and Kota (town/city) which includes an intensive mix of agricultural and non-agricultural activities side by side). This zone has without doubt represented areas of new economic opportunity, new jobs and increased income, especially for young female workers. At the same time, these areas are experiencing serious social and natural resources management problems. Brief discussions on the principal findings of the study are given below.

Socio-economic Transformation: The study reveals that industrial development has a significant socio-economic impact in the province. The population growth (see Table 2) rate between 1980 to 1990 had been 29 percent, and between 1990 to 2000, 64 per cent. Among the seven districts in Pathumthani province, the population-growth rate had been higher in the districts with more industries. Such as Khlong Luang, Muang Pathumthani, Thanyaburi and Lam Luk Ka have more population and industries than other remaining districts (see Fig 1 and Fig 4).

Table 2: Population Distribution at District Level of Pathumthani Province

Source: National Statistical Office, 1980, 1990 and 2000

Majority of young educated people have started to move to the industrial or service sectors abandoning agriculture practice for better wages and lower risks. These workers include many migrants from all part of the country.

In the study area, there has been a 20 per cent decrease in agricultural labour between 1980 and 1990, while it has gradually decreased to 26 per cent between 1990 and 2000. On the other hand the rate of industrial labour has increased by 181 per cent from 1980 to 1990 and that has increased only by 19 per cent from 1990 to 2000. The shift in the labour forces from the agriculture to industry has led to the shortage of workforce in agriculture resulting in a shift in the economy from a primary to a secondary one.

The contribution from industries to the gross provincial product (GPP) has increased from 19,327 million baht in 1983 to 76,045 million baht in 1999, while from agriculture it has decreased from 1,977 million baht in 1982 to 1,949 million baht in 1999. In other words, Industries have played a vital role in rapid economic developments in the province. Economic development can be regarded as a process of growth and change aimed at raising people’s living standards. It involves growth in total and per capita income, and is accompanied by the fundamental change in the structure of an economy. Table 3 indicates that per capita income has increased from 2,727 baht in 1990 to 5,768 baht in 2000. Similarly, the per capita expenditure has also increased from 2,409 baht in 1990 to 5,157 baht in 2000. It indicates that living standard of people has improved after industrialization.

Table 3: Average Monthly Income and Expenditure Per Household (HH) and Per Capita in Pathumthani Province

Source: National Statistical Office

Impact of Urban and Industrial Development: Following the implementation of the industrial decentralization policy in the fourth National Economic and Social Development Plan (1977-1981) and the government’s restriction to set-up new industries within Bangkok. The industrial firms have been invited to Pathumthani to invest. In order to encourage this trend, Pathumthani has created incentives for the investors. The province has lower land prices, simpler regulations, cheap labour and good road infrastructure. So, the fringe areas in the northern corridor of Bangkok like Muang Pathumthani, Lam Luk Ka, Thanyaburi and Khlong Luang districts of Pathumthani province, had speedily increased built-up area from 1980 to 2000 (see Fig 2 and Fig 3). This process of urban development is still expanding in the province.


Fig 2: Land-use Change From 1980 to 1990 in Pathumthani Province
Source: Base Map and Data from Land Development Department, Thailand



Fig 3: Land-use Change From 1990 to 2000 in Pathumthani Province
Source: Base Map and Data from Land Development Department, Thailand


From the GIS analysis (see Table 4), it is evident that 9.76 per cent and 7.54 per cent of agricultural lands have been converted to non-agricultural use from 1980 to 1990 and 1990 to 2000 in Pathumthani province respectively. Similarly, 76.42 per cent of water resources have been transformed to other uses from 1980 to 1990, but that have been increased by 53.43 per cent from 1990 to 2000 (This is happening due to the expansion of freshwater fishery farming in the province. According to Department of Fisheries, the landuse for fish farm in 1990 was only 709 ha. but it was increased by 1,899 ha. in 2000).

Table 4: Landuse in Pathumthani Province (landuse in hectare)

**It is an uncultivated land or abandoned land.

The district level data on agricultural land was also analyzed. It shows that the huge portion of agricultural land has been converted to built-up areas in most of the districts. Muang Pathumthani and Thanyaburi districts have had highest conversion rate from 1980 to 1990 that are more than 23 per cent and 22 per cent of total agricultural land respectively. Similarly, again Thanyaburi and Muang Pathumthani districts have had highest rate of agricultural land conversion to built-up area from 1990 to 2000 that are more than 23 per cent and 22 per cent of total agricultural land respectively. Other districts have also converted agricultural land to built-up area but that are lesser than the above mentioned two districts (see Table 5).

Table 5: Change of Landuse from Agricultural to Built-up Areas


It was also identified that the urban and industrial developments have happened not only on agricultural land, but also occurred in the fallow land area of the province. Just the Khlong Luang district has used up to 1,237 hectares of fallow land for urban and industrial development purposes within the last two decades (1980 to 2000). The study also found that Khlong Luang, Muang Pathumthani, Thanyaburi and Lam Luk Ka districts of Pathumthani have the greatest concentrations of built environment and industrial plants in comparison to the other three districts.


Fig 4: Canal Networks and Industrial Development in Pathumthani Province
Source: Department of Industrial Works and Land Development Department, 2003


Natural Resources Management Conflicts: Increasing demand for land creates competition and conflicts. Scattered industrial development also increases the potential for conflicts, especially, when these industries discharge untreated effluent into the irrigation canals. This province has a good canal network system. Therefore water contamination, odor, noise and dust are potential problems associated with industrial activities in the study area. The GIS analysis reveals that urban development and industrial growth have happened largely along the Chao Phraya River and canals (see Fig 4). This is happening because of easy access to water resources, waste disposal and transportation. These unsystematic growths have been the major sources of water pollution in the study area. According to Pollution Control Department the values of toxic substances (Example: pH, DO, BOD, NH3 and NO3; heavy metal like Mn, Fe, Pd, Cd and Cr Source: http://infofile.pcd.go.th/water/WQMModelingThailand.pdf; http://www.ostc.thaiembdc.org/environment/water.html#3.1.1) in the water of different canals of study area have crossed the Thai standard values. The local farmers also claim that the industries have polluted the canals that have made the waters unsuitable for domestic and agricultural uses. Mostly, poor migrants live nearby the canal banks (see Fig 5) and use canal water for everyday life. According to provincial health office (2000), majority of local people who use the canal water have health impacts especially diarrhea, dysentery, malaria skin rashes, etc. Thus the pollution of the water bodies poses one of the greatest challenges for natural resource management and creates conflict between local people and developers.

Government Intervention to Protect Natural Resources: Haphazard urban growth is happening in this province due to the lack of implementation of appropriate planning and weak enforcement of rules and regulations from the concerned authorities. Most of the land along the Chao Phraya River, canals and major highways has been converted into built-up areas. It has been spread in the inner part of the province after completion of Bangkok Outer Ring Road in 1996. Even though, there are still some places which have enough natural resources to serve the province. Now the government is serious on this issue, and plan to manage the existing natural resources for future prospect. It has declared two Muang Municipalities and eleven Tambon Municipality in the province (According to Municipal Act 1953, municipalities are divided into three classes on the basis of their population, revenue capabilities and ability to provide services. They are: a) Nakorn (city) municipality which should have more than 50,000 population; b) Muang (town) municipality which should have more than 10,000 population; and Tambon (township) municipality which should have 7,000 population), in order to detect and analyze the urban problems and implement effective development plans for sustaining the local environment. In addition, government has established 52 Tambon Administrative Organizations to straighten the development activities in the province.


Fig 5: Poor People Live Near the Canal


At the moment, government has planed to implement “Green Belt” zoning policies to manage the uncontrolled urban and industrial growth in some districts and sub-districts of the province. Recently, government is holding 55,194 hectares agricultural land in these areas to sustain the new policy and planning approach. In this plan, government has policy to protect prime agricultural land and existing water resources in these localities. But, those who live in green belt areas have protested against government decision regarding planning process on their area. According to government’s planners, ‘the land in green belt area means, people are prohibited to build big buildings and industries in the area. As a result, the market value of land will decrease in compare to non green belt area. So, people do not like their land to be in green belt area’. These two different interests between government and local residents in urban landuse planning process creates conflict situation before and after implementation of planning program in the area.

Concluding Remarks
Uncontrolled and unplanned urban and industrial growths are the main cause for deterioration of natural resources in the study area. From GIS analysis it is confirmed that mostly, the urban settlement and industrial growth happened near the river and canal sections from 1980 to 2000. The study found that Khlong Luang, Muang Pathum Thani, Thanyaburi and Lam Luk Ka districts are the greatest concentration of built-up area and industrial sectors in comparison to other three districts. The industrial development has also attracted the normal public for secure job. There are high rate of people migration from outer part of the province and start to encroach the natural resources for their benefit. In 1980, the population density per square kilometer was only 210 but it increased upto 444 in 2000. Among the seven districts, the population-growth rate was higher in Lam Luk Ka and Muang Pathum Thani during 1980 to 1990, but it was also shifting to other districts from 1990 to 2000 i.e. Lam Luk Ka, Khlong Luang, Muang Pathumthani and Thanyaburi districts. At the same time, developers also start to construct housing complexes and industrial premises for the public and foreign investors, which has converted large portion of prime agricultural lands into built-up areas. They have already invested big amount of money in the province which assist in raising the land price. Hence, after industrial development, the per capita gross provincial product also increases and changes the living standard of people.

Scattered industrial development also increases the potential for conflicts, specially due to untreated discharge of effluent in the irrigation canal during dry seasons when the water is scares. The increasing competition for land and rise in market value is the root cause of conflict between public and government sector during the landuse planning priority. However, since the government does not enforce landuse regulation effectively or consistently, the willingness of the general public to abide by these regulations is not strong. Illegal conversion of natural resource is quite prevalent and, for some landuse categories, is almost out of control, which always creates conflict situation between government and local communities.

On the basis of findings, some recommendations are illustrated to consider in future development activities, which might help to maintain the sustainable balance between urban development and natural resource management process with minimizing the conflict situation in the urban fringe areas. The recommendations are summarized as fallow:

Constructive Engagement of Stakeholder: In order to effectively plan and implement any regulations related urban development and natural resources management the government planning agencies need to engage stakeholder participation i.e. public, key agencies and local organizations, on decision making process. This would enable to formulate the acceptable plan. This practice generally highlights the realistic needs of the province and minimizes the conflicts.

Landuse Planning and Management: Urban landuse and natural resources management are the priority issues in the study area. There is a need to implement improved landuse management plan, which should comprehensively address competing land requirements for natural resource, urban development and other development needs. It is also needed to regularly monitor and update data information related to urban development and natural resources. Especially for the industrial development, it is essential to implement industrial zones and estates, which can internalize the externalities. In this way, the negative externalities such as environmental pollution can be managed within the industrial areas without letting then creating problems for surrounding land uses. This practice helps in managing the urban & industrial development and natural resources, and resolves the conflicts among the natural resources users of different sectors and government.

These two steps of recommendations are useful to get effective out-come from urban and industrial development if properly implement at field level. It will assist to protect natural resources and minimize the conflict situation in the urban fringe areas.

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