Measures of Resource Consumption (DP IB Geography): Revision Note

Poverty Reduction

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 

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

Growth of the New Middle Class

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

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

Ecological Footprints

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

• 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