Environmental Assessment
Volume C-5.1
Slurry Pipeline
Socioeconomics
Ambatovy Project
171
January 2006
Local Economy
With low employment and business benefits, over a short time frame, there is
little expectation of indirect and induced effects on local economies. Short-term
employment can provide a very welcome cash input to individuals, but this
cannot drive sustained demand for goods and services that would be necessary to
stimulate local economic effects.
Because anticipated project expenditures are expected to be minimal, the impact
on local economies is considered to be of negligible magnitude and consequence.
Education and Training
Pipeline construction will provide fewer opportunities for training than other
project components, although on-the-job experience may be of subsequent
benefit to some employees. Reclamation activities have more potential for some
training and job experience towards some long-term benefit, as has any
participation of local people in maintenance work. However the short-term
and/or occasional nature of such work suggest that this too will be very limited.
The potential impacts of education and training to the labour force and businesses
are considered to be of low magnitude, positive, long term, and of low
consequence, although the individuals who are able to access available education
and training will see an effect of moderate consequence.
Increased Income
Increased income is generally associated with improved individual and
household socioeconomic status. The nature of the construction and operation of
the pipeline however suggests that rather than increased income, those
individuals who are able to access employment will see essentially some cash
inflow occasionally and/or intermittently. While such inflows can be important to
affording some degree of economic security over the short term, they do not
represent sustained increased income.
The potential impacts of increased income are considered to be of low
magnitude, positive, short term, and of low consequence, although of moderate
consequence to those individuals and their families who are able to benefit.
Other Economic Effects
For the same reasons cited above, (that is, the limited economic opportunities of
the slurry pipeline and consequent minimal effect on local economies), other
