Measures of Resource Consumption (SL IB Geography)

What is poverty reduction?

• Poverty is defined as the lack of access to basic necessities such as food, shelter, and healthcare
• Poverty reduction refers to efforts aimed at reducing or eradicating poverty
• Poverty is a complex issue that is influenced by factors such as economic, social, and political structures, and inequalities
• There are many approaches to poverty reduction, including:
  • Providing direct assistance (e.g. cash transfers, food aid)
  • Creating job opportunities
  • Improving access to education and healthcare
  • Promoting economic growth and development

• Poverty reduction not only reduces or eradicates poverty; it also:
  • Has positive impacts on other areas, including health, education, and gender equality
  • Can be on a small or large scale
    • Including initiatives from governments and international organisations
  • Involves addressing systemic issues such as social exclusion, discrimination, and inequality
  • Requires collaboration and partnerships among various stakeholders. These may include:
    • Governments
    • Civil society organisations
    • Private sector

Global progress towards poverty reduction

• The United Nations' Sustainable Development Goal (SDG) 1 is to 'End poverty in all forms' by 2030
• There has been significant progress towards this goal; over one billion people have moved out of extreme poverty 
  • • The percentage of the world population living in extreme poverty has decreased from 46% in 1968 to 8.5% in 2019
    • The number of people living in extreme poverty has decreased over the same period, from 2 billion to 660 million
    • Between 2020 and 2021, there was an increase in people living in extreme poverty to 750 million
      • This was due to the economic impact of the Covid-19 pandemic

Share of population living in extreme poverty

• Despite the progress made, the goal of ending poverty by 2030 is unlikely to be achieved 
  • Globally, almost 1 in 10 people still experience extreme poverty

• Poverty reduction has: 
  • Occurred due to increased incomes
  • Led to the development of
    • The new global middle class (NGMC) - approximately 2.5 billion people
    • Fragile middle class - approximately 4 billion people 

Regional progress towards poverty reduction

• There are many suggested reasons for the global decrease in poverty including:
  • The rapid development of countries in Asia
  • Globalisation and trade
  • Increased participation of China, India and Eastern Europe in the global economy
  • Reduced colonial and neo-colonial influence in some countries
• Each region or country has unique characteristics
• The changes in the numbers of people living in extreme poverty will vary depending on these characteristics
• The greatest reduction in the number of people living in extreme poverty has occurred in China and India
• The only area to experience growth in people living in extreme poverty is Sub-Saharan Africa  
• By 2030, is estimated that climate change may lead to up to 130 million members of the fragile middle class falling back into extreme poverty 

Global change in the number of people living in extreme poverty

Wealth inequality

• Despite the decrease in levels of extreme poverty, there has also been an increase in wealth inequality
  • The wealthiest 1% own almost 45% of the world's financial assets
  • Since 2020:
    • The wealth of billionaires has grown three times faster than the rate of inflation
    • The wealth of the poorest 5 billion people has fallen by 0.2% 
  • This has occurred because those with wealth can invest and gain more income
• There has also been an increase in relative poverty in many regions
• As the wealthiest become richer the gap between them and those on lower incomes increases

What is the global middle class?

• The middle class is a phrase which was used to describe people between working class and upper class 
• The new global middle class (NGMC) refers to individuals or households attaining a certain level of income and consumption 
  • Typically, their wealth is above poverty levels but below the wealthiest segments of society
  • The NGMC do not yet have the affluence of the 'middle class' living in high-income countries
  • The definition of NGMC varies and can include people who:
    • Spend or earn more than US$12 a day
    • Earn more than US$10,000
    • Earn between US$3,650 and US$36,500
  • It is estimated that approximately 2.5 billion can now be categorised as NGMC
  • Increased wealth means that people have more disposable income and can buy more goods and services

The growth of the global middle class

• The growth of the NGMC has been a significant global trend over the past few decades
• Factors driving the growth of the NGMC include:
• Economic growth
• Urbanisation
• Technological advances
• The size and characteristics of the NGMC vary across regions and countries, some countries experience more rapid growth than others
• India and China have experienced rapid growth of their middle class population
• The middle class populations in these two countries account for almost 50% of the NGMC consumption

Share of middle class

The impact of the growing middle-class

• The growth of the middle class affects
  • Consumer behaviour
  • Global trade and investment
  • Social and political dynamics

• The growth of the middle class has also been linked to several challenges, including:
  • Environmental degradation - increased consumption and waste lead to more pressure on the environment
  • Resource depletion - increased consumption means more resources are used 
  • Rising inequality - within and between countries 
• Increasing numbers of the middle class have also led to:
  • Implications for businesses and industries which operate on a global scale
  • Opportunities to address poverty and promote sustainable development
  • Middle-class customers may demand more sustainable and socially responsible products and services
  • The emergence of new markets and consumer preferences 
  • Debates and discussions regarding the affordability and accessibility of goods and services
  • Consideration of the role of government in ensuring the well-being of citizens and in promoting equality

Measuring trends in resource consumption 

• Global resource consumption is increasing due to:
  • Economic development
  • Population growth
• Estimates of the Earth's carrying capacity vary
  • Most studies estimate between 8 and 16 billion people
• The higher the average consumption of resources, the lower the carrying capacity becomes
  • If everyone consumed resources at the rate of the average American, the carrying capacity would be much lower than if everyone consumed only what they need
  • The UN predicts that resource use in 2050 will be 71% higher per person than in 2022 
• The rate at which renewable and non-renewable resources are being used will affect the future carrying capacity
  • Renewable resources are those which can be naturally replenished to keep pace with the speed they are used
  • Non-renewable resources are resources which cannot be replenished at the speed at which they are used

What is an ecological footprint?

• Ecological footprint is defined as the measurement of the amount of land and water a population requires to:
  • Produce the resources it consumes
  • Absorb the waste generated

• It measures the relationship between population size and resource consumption

Calculating the ecological footprint

• The ecological footprint is calculated in acres or hectares
• Biocapacity is the total productivity of an areas agricultural land, built up land, forests and fishing areas
• It assesses how much productive land is needed to maintain the population at the current rate of resource consumption
• The calculation considers:
• Bioproductive land, which refers to grazing land, gardens, forests, farmland for food and materials, etc
• Bioproductive sea, referring mostly to fishing grounds
• Built environment, needed for road and settlement construction, etc
• Energy resources, such as land, are needed to produce renewable energy
• Biodiverse land for non-human species 
• Non-productive land, e.g deserts
• Other factors, such as species extinction, toxic pollution of air, water and other non-renewable energy resources, are not taken into account

Individual footprint 

• An individual’s ecological footprint is a measure of their impact on the environment
• It is calculated by measuring the amount of resources the individual consumes, including:
  • Food
  • Water
  • Energy 
  • Materials
• It also includes the amount of waste individuals produce
• Individual footprints are:
  • Higher in wealthier countries, where people consume more material goods and energy
  • Lower in low-income countries where people consume fewer material goods and energy

National footprint 

• A national footprint is a measure of a country's ecological impact
• It is calculated by measuring the amount of resources a country consumes, such as:
  • Fossil fuels
  • Forests
  • Fisheries
• It also includes the amount of waste it generates
• The national ecological footprint varies significantly between countries, with wealthier countries typically having larger footprints due to their higher levels of consumption and industrial activity 
  • Qatar has the highest ecological footprint at around 12.6 hectares per capita
  • Haiti and Malawi have footprints of less than 1 hectare per capita
• An ecological creditor is a country with an ecological footprint lower than their carrying capacity
• An ecological debtor is a country with an ecological footprint greater than their carrying capacity

Global footprint

• A global footprint is a measure of humanity's impact on the environment
• It is calculated by adding up the ecological footprints of all countries and expressing the total in global hectares
• The global footprint is used to estimate the overall sustainability of human activities on the planet
• The global ecological footprint has more than trebled since 1961. This is due to:
  • Population growth
  • Increasing consumption
  • Increased production levels 
• The Global Footprint Network estimates that humanity first went into ecological overshoot in the 1970s and has been doing so ever since
  • This means that our ecological footprint is larger than the earth's capacity to regenerate its resources
  • Earth Overshoot Day is calculated as the day each year when humans have used the resources the Earth has the annual capacity to regenerate
  • In 2022, it was estimated that the world's population used 1.7 Earth's worth of resources

World Overshoot Day

• The consequences of this are major global environmental problems, which include:
  • Biodiversity loss
  • Climate change
  • Resource depletion

Challenges associated with calculating ecological footprints

• Ecological footprints involve analysing various interconnected systems and processes
  • It can be a challenge to accurately measure and account for these
• Environmental footprints don't give the full environmental impacts of a product
  • They do not account for the impacts of switching to a more environmentally friendly option
• Ecological footprint calculations are based on simple principles, which means they can be difficult to apply to complex situations
• Different methods of calculating ecological footprints produce different results
  • They are dependent on assumptions and data used
• Predicting future consumption patterns, technological advancements, and their associated impacts can be challenging
  • This makes long-term footprint calculations less reliable