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Question

Describe the economic problem caused by the construction of dams.


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Solution

Dam:

Dams are huge barriers built across rivers and streams to store and utilize the water for various human needs. However, the construction of dams causes major problems as well.

Economic problems caused by the construction of dams are:

  1. For the construction of dams, a huge amount of public money is required but the net benefits do not go to the people or to the society.
  2. Only the urban areas, the industrial and government sectors gain benefit from the construction of dams through power generation at the expense of the people in rural areas where the dam is built.
  3. The people in the dam-built area suffer many economic losses, especially during floods.

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