Natural Resource Security (HL) (DP IB Environmental Systems & Societies (ESS)): Revision Note

Resource insecurity & geopolitical tensions

What is resource insecurity?

• Resource insecurity occurs when the availability of essential natural resources such as water, energy, and minerals does not meet the demands of a population

• Key causes:

  • Rapid population growth

  • Overexploitation of resources

  • Uneven distribution of natural resources across the globe

  • Climate change affecting resource availability

Impacts of resource insecurity

Socio-economic development

• Hindered growth:

  • Limited access to resources affects industries and agriculture

  • Results in unemployment and reduced economic output

    • E.g. in sub-Saharan Africa, water scarcity limits agricultural productivity and energy insecurity limits industrial growth, contributing to poverty

• Health challenges:

  • Lack of clean water and food leads to health crises

    • E.g. prolonged droughts in Somalia have contributed to food shortages and malnutrition

Geopolitical tensions from resource insecurity

Resource-linked geopolitical issues

• Power dynamics:

  • Resource-rich nations hold significant global influence

  • Control over resource supply chains can shift power balances

  • Nations dependent on imported energy are vulnerable to price shocks

    • E.g. Russia's control of natural gas supplies affects European energy security

    • The European energy crisis in 2022 occurred due to reduced gas supplies from Russia

• Conflict and rivalry:

  • Resource competition can lead to disputes over territorial claims

    • E.g. South China Sea tensions due to oil and gas deposits and strategic importance

Specific resource-based issues

Oil

• OPEC:

  • The Organisation of the Petroleum Exporting Countries (OPEC) controls much of global oil production

  • Decisions on oil production levels can impact global markets and economies

Minerals and rare earth elements

• Mineral supply chain dependence:

  • Most mining for key minerals like lithium and cobalt, and rare earth elements, occurs in Australia, China, Chile, and the Democratic Republic of the Congo (DRC)

  • China processes nearly all rare earth elements

    • This dominance in rare earth mineral processing gives China significant geopolitical power

    • E.g. the US-China trade war includes disputes over rare earth exports

Achieving resource security

Reducing demand

• Resource conservation measures can improve resource efficiency, e.g:

  • Energy-efficient appliances and buildings reduce electricity use

  • Drip irrigation in agriculture minimises water wastage

• Promoting recycling and the circular economy reduces reliance on raw materials

  • E.g. aluminium recycling uses 95% less energy than producing new aluminium

Increasing supply

• Diversification of resource sources spreads risks

  • E.g. the European Union is investing in renewable energy to reduce dependency on imported oil and gas

• Investments in domestic production decrease reliance on imports

  • E.g. the United States has boosted shale gas extraction to enhance energy independence

Changing technologies

• Innovations help substitute scarce resources or improve resource efficiency

  • Solar and wind energy reduce dependency on fossil fuels

  • Desalination technologies improve freshwater availability in arid regions, such as in Saudi Arabia

Examples in food, water, and energy security

• Food:

  • Technologies like vertical farming and hydroponics have the potential to help reduce pressure on arable land, increasing food security

• Water:

  • Singapore's NEWater project recycles wastewater for drinking purposes

• Energy:

  • The transition to renewable energy sources, such as offshore wind farms, boosts the energy security of a country or region

Economic globalisation & resource interdependence

Economic globalisation increases resource supply

• Global trade increases access to resources that are not locally available

  • E.g. Japan imports over 90% of its energy needs

• Foreign investments enable resource extraction in developing countries

  • E.g. China invests in African countries to secure access to minerals like cobalt and copper

Interdependence and its challenges

• As a result of economic globalisation, countries become increasingly reliant on each other for resources

• This can have the reverse effect and reduce national resource security

  • E.g. European nations depend on Russian gas, creating vulnerability to political tensions

• Disruptions in global supply chains can affect availability

  • E.g. the COVID-19 pandemic led to shortages in electronics due to supply chain disruptions for rare earth elements

• Exporting countries risk becoming overdependent on resource revenues (i.e., they may be overly reliant on the money they make from selling their resources to other countries)

  • E.g. Venezuela’s economy collapsed significantly from 2014 onwards

  • This was due to a sharp decline in global oil prices, which fell from over $100 per barrel in mid-2014 to below $30 per barrel in early 2016

  • As Venezuela relies heavily on oil exports for government revenue, this price shock severely affected its economy

  • This caused hyperinflation, food shortages, and a humanitarian crisis