The Impact of Globalization On Florida's Environment:

TETRA Data ApplicationsTuomas KorpilahtiSolution Marketing ManagerEADS Secure Networks

Impact of Globalization on theEnvironmentProgress paradigmSocieties, by nature, are constantly evolving andthat any change necessarily leads to adjustment,adaptation and thus progress

Incompatibility ParadigmCorporations are like cancerous tumors, whichforget they are part of a larger whole of thebody and unleash the pursuit of their unlimitedgrowth. With economic globalization, insteadof trying to contain the cancer, we feed it –pulling down barriers in its path, allowing it todevour ever more of our natural world.Retallack

Globalization in Florida• International trade is the largest economicsector ($42 billion) more than tourism andagriculture!• 55% of US-Central America trade and 45%of the US-Caribbean trade moves throughFlorida seaports and airports• Florida exported goods worth $28 billionfrom 213 countries in 2000.

• Direct Foreign Investment in Florida isgrowing 16% annually• Florida’s is the second most attractivedestination for foreign travelers!• 300 people from other countries move toFlorida each day!

When it comes to movementof people, capital orproducts…Geography is History!!

International travel is up…Overnight trips to the US 1990-2000US Residents OvernightInternational Trips 1990-2000Source: US Department of Transportation, 2001

International phone calls havegrown…• The number of calls madefrom the United States toother countries increasedfrom 200 million in 1980to 6.6 billion in 2000.• On average, carriers billed$.51 per minute forinternational calls in 2000,a decline of more than60% since 1980.Millions ofMinutesMillions of Minutes of International TelephoneCalls Originating in the United States30,00025,00020,00015,00010,0005,00001980 1985 1990 1995 2000YearSource: FCC, 2002

Value of US Trade withNAFTA PartnersValue of U.S. trade with NAFTA PartnersBillions of current $US70060050040030020010001988 1990 1992 1994 1996 1998 2000 2002YearSource: US Department of Transportation, 2001.

International InvestmentUS Direct Investment Abroad: 1994-2000Millions of dollars1,400,0001,200,0001,000,000800,000600,000400,000200,00001994 1995 1996 1997 1998 1999 2000YearSource: US Department of Transportation, 2001

International TravelInternational Visitors to FloridaNumber ofVisitors (000)6200600058005600540052005000• Florida ranked #2in number ofoverseas visitors in200048001995 1996 1997 1998 1999 2000YearSource: Department of Commerce, International TradeAdministration

Foreign Direct InvestmentForeign Direct Investment (FDI) in Florida 1996-200140000350003000025000Millions of20000Dollars1500010000500001996 1997 1998 1999 2000 2001YearSource: Florida Enterprise, Inc., 2004.• Foreign Direct Investment(FDI) in Florida hasgrown 16% annuallybetween 1977-2000• There were 1574 foreignestablishments related toforeign direct investmentin Florida in 2000.Primary Data from: US Department ofCommerce, Bureau of Economic Analysis

Florida ExportsFlorida’s export sales ofmerchandise in 2000Florida exported goodsworth $24.2 billion to213 foreign markets in2000Source: US Department of Commerce, International TradeAdministration, August 2001

Florida as an International• Seaports are criticalfor globalization• Florida is locatedwithin 2000 miles ofan estimated 22different countries• Port of Miami, PortEverglades and PortCanaveral are theworld’s 3 busiest portsCrossroadSource: FDOT

Trade Agreements and Florida• Since the implementation of NAFTA exports to Canadaand Mexico have increased 38% (Trade PromotionAuthority).• Florida contributes more than 40% of US exports to theWestern Hemisphere (myflorida.com, 2003)• Florida’s 2000 export sales of merchandise is 65% abovethe 1993 total (US DOC, 2001)• 55% of trade between Central America and the US, 27% ofUS-S. American trade and 45% of US-Caribbean trademoves through Florida (myflorida.com, 2003)

Has there been a shift inProduction as a result ofGlobalization?• “Florida has evolved from an agricultural stateinto a major international business and tradegateway between the Americas and the rest of theworld (“To diversify.., 2003)• Large Growth in Non-Farm Employment suggestsshift in production.• In a state once dominated by agriculture,especially citrus, the focus is now on high-techand service industries.

Change in Non-Farm Employment 1994-2004Change in Leisure and Hospitality Employment 1994-2004Source: US Dept. of Labor, BLS

Globalization andEnvironmentAn ad placed in Fortune Magazine by the Philippinegovernment read: “To attract companies likeyours…we have felled mountains, raized jungles,filled swamps, moved rivers, relocated towns…tomake it easier for you and your business to dobusiness here.”(Retallack, 2002, p. 16)

Impact on the Environmentfrom Changes in Production• Agricultural Industry• Sugar Industry• High Tech Industry• Service Industry

Agriculture and Florida• 9 th nationally in value of farm products(2002) sales of $6.85 billion• 2 nd nationally in production of freshvegetables, $1.4 billion• Florida is the nation’s leader in citrusproduction with ~74% of US production in2002-2003.Source: Florida-Agriculture.com

Environmental Impacts ofAgriculture• Agriculture is the highest consumer of water in FL(Council of 100).• Land and water development in the Everglades(EAA) has impacted wildlife and threatens the longterm economic stability of local economies.• Runoff from agriculture is suggested to be cause ofDecline in coral reefs in South Florida.

Agricultural Industry andGlobalization• Florida is experiencingincreased pressure to stayahead of globalcompetition– NAFTA has made it easierto import tomatoes fromMexico.– Average annual US tomatoimports from Mexico haveincreased 8-15% as a resultof NAFTA’s tariff changes(Porter, 2003).• Increase in imports ofagricultural products leadsto a decrease of used farmland in FloridaThousands ofAcresFlorida Farm Land in Thousands ofAcres (1963-2003)200001000001960 1970 1980 1990 2000 2010YearSource: Florida-Agriculture.com

Environmental Impacts of aShift Away from Agriculture• Decreased farm land use as a result ofGlobalization leads to– Less pesticides and fertilizer– Less water usage• The reduction in agricultural activities could alsohave negative effects– There may be increased land conversion to moreharmful non-farm uses (Aillery et al., 2001).

Sugar and Florida• Sugar Cane was valued at$517 Million in 2002(florida-agriculture.com)• Sugar is available fromforeign market at lowerprices, but is tariffedheavily and quotas preventimportation of sufficientamounts (Schwabach,2000).• High price of domesticsugar ensures high level ofproduction.• Sugar threatens theEverglades• High levels ofphosphorous presentpotential impact to Floraand Fauna• Plans are not sustainable,approximately 56 plantand animals species arethreatened or endangeredin the everglades (GCSF,2001).

Environmental Impacts of aShift away from SugarShift away from Sugar• “Globalization of trade, seen by someenvironmental activists as an undiluted evil isperhaps the only means to save Florida’sEverglades” (Schwabach, 2000).• A reduction in price, tariffs, or increased exportcould have positive effects on the environment.– A 10% reduction in domestic sugar price could increasethe water retention of the EAA by 10,000 acre-feet peryear over. This would occur primarily as a result ofincreased cropland retirement because it would nolonger be cost effective to produce sugar (Aillery et al,2001)

High-Tech in Florida• Key InformationTechnology (IT) industries– IT products and InformationServices– Software development– Modeling, Simulation,Training– Photonics, Lasers andOptics– Microelectronics– Telecommunications• High tech -the mostimportant source of futuregrowth in Florida• Employment has increased29.4% from 1995-2000.Growth of Employment in Florida's HighTech Industry 1995-2000#Employees4000003500003000002500002000001995 2000YearSource: RERC, 2002

Source: ESRI Business Analyst 1999; Dun & BradstreetSource: ESRI Business Analyst 1999; Dun & Bradstreet

High Tech and theEnvironment• Carries significant environment baggage as seenby Silicon Valley– Air, water pollutants• However, the Florida High-tech industry isrecognized as a “Clean Industry”– Subject to the CAA, CWA, CERCLA, Toxic SubstanceControl Act– The types of products being manufactured differ.• No signs of a reoccurrence of Silicon Valley inFlorida

Service Industry in Florida• More than 70% ofFlorida’s total economicoutput comes from serviceindustry• Sectors of the ServiceIndustry– Banking & Finance– Insurance– Legal Services– Accounting– Management, Consulting &Executive Search Firms• Expansion of the whitecollar service industry.• There were 13 Fortune500 firms in Florida in1997– 11 were service orientedDistribution of Fortune 500 Firms in Florida ThroughIndustriesNumber ofFortune 500Firms121086420ServiceManufacturingIndustrySource: Hartshorn, 1997

The Service Industry and theEnvironment• Conducive to an environmentally friendlyeconomy• However,– The industry tends to increase human migrationand put additional stress on resources– Additionally, low-income jobs keepinfrastructure impoverished.

Summary of the Env. Effectsof Changes in Production• Shift away from agriculture and sugar– Less land used– Less water– Less pesticides and fertilizers• Shift towards service and high-tech– Environmentally friendly economy– Migration creates additional stress on resourcesand infrastructure

Movement of People• Globalization impacts the movement ofpeople through– Tourism– Migration• There is an increased number of permanentinternational migrants, tourists and businessactivities (Solecki, 2001).

Tourism and Florida• Perceived as mostimportant industry inFlorida• Florida was the #2 USdestination forInternational Visitorsin 2000• Miami is the cruisecapital of the world, 3.6million passengers inFY 2002.• 15% of visitors to Disneyin 1990 were international• Employment from 1995-2000 has increased19.48%Growth of Employment in Florida'sTourism Industry 1995-2000#Employees4000003500003000002500001995 2000YearSource: Real Estate Research Consultants, 2002

Tourism and the Environment• “Nowhere is the destructive effect of tourism moreevident than in Florida” (Newman & Sage, 1999).– Increased consumption of energy: growth and tourismhave boosted the states energy consumption over 250%over the past 35 years (Hull, 2004).– Increased visitation leads to increased development aswell as to additional stress on natural resources• The UNEP has identified possible environmentaleffects of tourism as:– Overuse of water resources, pollution and degradationof fragile ecosystems (2001).

Population Growth• Domestic andInternational Migration• Florida’s population isexpected to grow morethan 53% from 2000-2030 (FDOT, 2003).Source: Enterprise Florida, 2004 (FL economy at a glance)

International Migration• 38.6% of Florida’s foreignborn population arrived inthe State after 1990 (FAIR2002 )– 12.9% of pop was foreignborn in 1990– Figure increased to 16.7%in 2000 (US Census, 2003)• In 2000, ~73% of theforeign born population ofFlorida was from LatinAmerica, 13% Europe and9% Asia (US CensusBureau, 2003)

Impact on the Environmentfrom Human Migration• Change in Landscape• Modes of Transportation• Availability of Water• Municipal and Solid Waste Production• Flora and Fauna

Changing LandscapeSource: United States Geologic Survey

Transportation: MotorVehicles in Florida• Over the last 2 decades the number of registered vehiclesin Fl has increased by 166% (Governor’s Commission forSustainable Florida, 1995).• Roadway length increases at a rate of .7%/year (FDOT,2003)• Overall, emissions are down slightly (FDOT, 2003)Source: FDOT, 2003.

Enplanements for MajorFlorida Airports (1966-1999)1999)YearOrlandoMiamiTampa/St.Pete.196630308325753379295591970486201360723414220221975147585946832692290901198031245688136235360073019854848771771768540099791989737344985919364409261199912539000127210006912208Source: Bureau of Transportation Statistics

Urban Sprawl in Florida• Growth and urbanization result in reducedgroundwater recharge lowered groundwater tablesand increased pollution (GCSF, 2001)• Million of acres of Southern Forests will be lost tourban sprawl over the next 20 years– Florida leads the south in the amount of Timberlandlost to development (Pittman, 2001)– 20% of Florida forests have been lost from 1950-1990s• New highways, driveways and fairways consume1000 acres of wetland every year (Grunwald,2002)

Availability and Quality ofWater• Urbanization and migration are stressing the groundwater,lowering the water table and increasing water pollution inthe state (Governor’s Commission for a SustainableFlorida, 2001).• A study conducted on the Indian River Lagoon Watershedconcluded that urbanization from 1920-1990 was thesingle most contributing factor in increased annual andsingle event runoff volumes (Kim et al, 2002).• Immigration between 1995 and 2000 increased the demandon water by approximately 30% (FAIR).

Municipal Waste ProductionSolid Waste Generation and Management 1995-199925,000,00020,000,000Tons of Waste15,000,00010,000,00019955,000,00019990TotalManagedTonsLandfilledTonsRecycledTonsSource: Florida Department of Environmental Protection

Flora and Fauna• Increased migration as a result ofGlobalization may increase pest invasions.– Introductions from Asia to Florida increasedfrom 1986-2000– Increase in introductions parallels increase ingoods exported from China to the US (1985-$5b, 1999-$62b)(Loope & Howarth, 2002).• Urban and Rural development are 2 of theleading causes of loss of wetlands.

If Globalization is having annegative impact on theenvironment of Florida we wouldexpect….• A decline in air quality• A decline in water quality/availability• A decline in biodiversity• An increase in land usage• An increase in the production of waste• An increase in the consumption of resources

However, evidence shows…• Emissions havedeclined• Water quality isvariable• There has been nosignificant change inthe status of Fauna inFlorida• Managed Solid wastehas decreasedEmissions inTons700,000600,000500,000Emissions in 400,000Tons 300,000200,000100,0000Annual Air Emissions CO2300,000,000.00200,000,000.00100,000,000.000.001995 2000YearAnnual Air Emissions of SO2 and NOx1985 1990 1995 2000YearSO2 TonsNox TonsSource: EPA

Can Florida’sEnvironment Keep Upwith the Stresses ofGrowth?

Policy ImplicationsPolicy Implications• The global economy in the post-NAFTA yearsmay not have adversely impacted the environmentto the extent hypothesized by the incompatibilityparadigm; nonetheless, the state faces many longterm environmental pressure points.– Farmers– Business– Manufacturers– Human migration– High Tech Industry– Service Industry

Are there Safeguards?• Global Safeguards– Collaborative Treaty frameworks– Self imposed by WTO or NAFTA• National Safeguards– National Policies and Laws• Local– 35 statutes governing environment– 11 Regional Planning Councils– Centralized agencies (FDEP)– Growth Management as a 1985 national model

Most Significant Hurdles to thePreservation of Florida’s• Subsidies– The sugar industryEnvironment– Encourages sub optimal land use• Growth Management• No protection against bio-invasion• No attention to the impact of global forces

Policy Recommendations• Need for Targeted Research• Need for Institutional Safeguards• Need for Reassessment of ExistingEnvironmental Laws– Are existing laws sufficient?• Need for Engaging Local Communities• Need for Trained and Skilled Workforce