Key Concepts in Global Poverty, Socioeconomic Classes, and Resources

Middle class

The socioeconomic group that is below the upper class and working class. Typically seen as stable employment, sufficient income to afford expenses other than basic needs (housing, healthcare, food, etc.). Someone who earns/spends $10-100 per day.

Disposable income

The amount of income left over after taxation that can be spent, saved, invested, etc.

Poverty

State of being extremely poor, lacking material possessions or money [relative term].

Extreme poverty

When individuals are unable to meet the most basic survival needs. To allow international comparisons, the world bank and UN created the arbitrary figure of $1.90USD OR $2.15 (2022 ver.).

Relative poverty

Poverty viewed based on a lens of what's normal or abnormal in their own country.

Absolute poverty

A method to measure poverty for fairness to poverty stricken members of society.

Poverty line (or poverty threshold)

Minimum level of income needed to secure necessities of life. Depends on the country: USA elderly $32.25/day, family of 4 $66.45/day, India $0.40 urban, India $0.25 rural, China $0.55/day.

Extreme poverty threshold

The arbitrary figure of US$1.90 used to allow international comparisons, created by the world bank and UN.

World poverty trend since 1981

Had a gradual decrease in poverty, starting from about 42% of the population in 1981, and around 10% at 2015.

HICs poverty trend

Has remained relatively stagnant, but from 1981 it was around 2%, in 1999 there was a drop to about 1%, and has remained at 1% until 2015.

Upper middle countries poverty trend

Generally a steady decline in poverty, but from 1987-1990 there is an increase from 40% to 44%. Otherwise, there is a consistent decline, with 1981 at 57% and 2015 at about 2%.

MICs poverty trend

A very stable decline in poverty, 1981 at 55%, 2015 at 8%.

LICs poverty trend

From 1981 to 1993 there was a slight increase from 66% to 71%, then decline until 45% in 2015.

Poverty concentration

About 60% of the world's extreme poverty is located in: India, China, Nigeria, Bangladesh, and Democratic Republic of the Congo.

LICs concentration of poverty

There is a higher concentration of poverty in LICs, so sub-Saharan Africa and South Asia hold 80% of the world's extreme poverty.

Women and poverty

Women are more likely to live in poverty.

Causes of decreasing worldwide poverty levels

Factors contributing to the decrease in worldwide poverty levels.

Globalization

A major factor for reducing poverty because it made international trade accessible.

International trade

The exchange of goods and services across international borders.

Faster and cheaper production process

Leads to cheaper resources and increased efficiency.

Increase of trade

Allowed developing countries to have more wealth and employment.

Improved health

Enhanced access to education and better infrastructure provided by governments.

Increased use of technology

Allowed faster and more efficient manufacturing, providing better employment opportunities.

Incomes have risen

Contributed to the reduction in poverty, poor health, malnutrition, and improved education and housing.

Larger middle class

A demographic expected to grow significantly, especially in Asia by 2030.

Foreign aid

International transfer of capital, goods, etc. by organizations or countries to benefit the recipient country.

Trade

The exchange of goods.

Free trade

Trade policy that doesn't restrict imports and exports (i.e., tariffs, sanctions, etc.).

Fair trade

Movement to help low-income country developers ensure fair wages and good working conditions.

Remittance

When citizens of one country go overseas to earn money and send it back to their families.

Debt reduction

Forgiving or reducing debt from low-income countries.

Rostow's stages of development

Traditional society → pre-takeoff → take off → maturity → mass consumption.

Clarke's sectors

Primary, secondary, tertiary, and quaternary sectors of the economy.

Resource

Something that is useful to humans, often related to culture.

Renewable resource

Resource that can be used basically forever.

Nonrenewable resource

A finite amount of material due to slow generation in nature.

Unsustainable resource use

Exploitation of a resource faster than it can regenerate, leading to depletion.

Natural resource

Something in the biophysical environment that can be used by people.

Ecological footprint

Amount of land and resources needed to sustain a person or community.

Carbon footprint

Measures the CO2 produced by using fossil fuels in a person, product, or activity.

Biocapacity

Earth's ability to produce and absorb waste, representing how much earth can sustain human activity.

Global Hectares

Units of biologically productive area used to measure the area needed to produce materials consumed.

BRICS Countries

Brazil, Russia, India, China, South Africa; emerging powers.

OECD Countries

38 countries including North America, South America, Europe, and Asia-Pacific that support international trade and globalization.

Food miles

The distance food has travelled to get to your plate.

Urban sprawl

The development of urbanization on undeveloped land near cities.

Higher deficit

Due to higher level of economic development and consumption

Shortcomings of ecological footprint

Reliability of input data questionable because stats are hard to measure and obtain

Assumptions of ecological footprint

Anthropogenic resource uses and waste/emissions can be identified

Bioproductive area

Converted into a single measure (global hectare)

Calculated demand for land

Can exceed supply

International comparisons

Aren't always reliable because different countries use different measures

Greenhouse gases (GHGs)

Only CO2 is included - other GHGs and waste ignored

Renewable resources

Only addresses renewable resources (no ores, minerals, fossil fuels, etc.)

Fresh water consumption

Not considered in ecological footprint calculations

Trade simplification

Only looks at global average - no adjustment for intensity depending on country/distance travelled

Carbon absorption rate

Assumes the rate of carbon absorption is 0.97 tonnes of carbon/hectare of forest per year

Strong sustainability

Natural resources and human products cannot be substituted, and human goods depend on intact natural resources

Weak sustainability

Looks at natural resources and goods produced by humans as interchangeable

Arable land

Land suitable for growing crops

Pasture land

Land used to feed/raise animals, often cattle

Carbon tax

Government policy to reduce carbon footprint

Carrying capacity

Number of people that can be supported by a given ecosystem given the consumption of natural resources and technology

Population size and resource consumption correlation

More population, more consumption; less population may have higher consumption due to economy or lifestyle

Justification for HICs and MICs resource consumption

Higher cost of living and efforts towards sustainability

Uneven distribution of water resources

Places where people need water do not coincide with areas that are abundant with water

Population growth and water distribution

Precipitation is relatively the same over time, but population grows → less water/person

Embedded water

Term used to describe the water used in the production of goods and services

Virtual water

Quantity of water used in the entire process of producing, selling, and consuming a product.

Green water

Precipitation that fell and is stored on surfaces/soil moisture, not available for direct human use; ~60% of precipitation is green water.

Blue water

40% of precipitation that has been collected in bodies of water, groundwater, and stored for human use before evaporating/going into ocean.

Grey water

Waste water from agricultural, manufacturing, household and service activities with NO sewage contamination.

Black water

Waste water from agricultural, manufacturing, household and service activities that has sewage contamination (faecal) and cannot be reused.

Water scarcity

Measure of resource availability; relationship between available water resources in an area and the water needs of the population there.

Aridity

State of being very dry due to lack of rainfall.

Low rainfall

Area that receives little precipitation.

Physical water scarcity

Natural water resources in an area cannot meet the needs of the people living there.

Economic water scarcity

Poor management of water resources in an area causes the demand for water to exceed the amount available.

Baseflow

Continuous and stable runoff.

Water use per capita

Water use per capita per day is ~150L world average.

Embedded water in food

Accounts for 65% of total water use in the UK.

Farm productivity

The amount of food production from the same area.

Increased rates of farm productivity

European Union (same production rate, but decreased land use, so productivity increases), South Asia (same land, more product made x4).

Technological change

Factors causing the productivity of farms to improve in most parts of the world.

Dietary homogenisation

Increasingly similar diet (common elements in people's diets).

Dietary convergence

Difference in people's diets (eating different foods, different weights).

Meat consumption changes

A majority of countries have been consuming meat 0x to 1.5x higher, especially in North America and most of Europe between 1961 and 2011.

Meat consumption in South America

Ranges from increasing by -1.5 to 5-6x higher.

Meat consumption in Africa

Has a mix of countries that have consumed meat 0-1.5x higher, 0-1.5x lower, and 1.5-2x higher.

Meat consumption in Asia

Many countries have a great increase in meat consumption, ranging from 1.5 to 13-15x higher.

Highest growth in meat consumption

Observed in China.

Decrease in meat consumption

More pronounced in the southern hemisphere (other than the Asian countries).

Environmental degradation

Arises due to needing land for irrigation.

High usage of water for livestock

May impact urban water accessibility.

Health issues from excessive meat consumption

Includes obesity, heart disease, cancer, etc.

Food security issues

Focus on growing food for livestock instead of food for impoverished, enhancing food insecurity.

Higher GHGs

Due to cows and methane gas.

Safe drinking water

Water used for domestic purposes that meets WHO guidelines.

Access to water

Source of water is less than 1km away from the place it is used, and it is possible to obtain at least 20L a day on a reliable basis.

Types of water

Must know the 4 types of water: green, blue, grey, black.