02a - Global distributions of resources

Resource

• anything that serves a useful purpose, satisfies a need or want, or can be used to achieve a goal

• resources can be tangible or intangible

• resources can be renewable or nonrenewable

Tangible Resource

natural materials, money, equipment

Intangible Resource

time, knowledge, energy, social rewards

Renewable Resource

replenishing over time

Non-renewable Resource

existing in limited quantities

Natural Resources

• fossil fuels

• metals and minerals

• forest products

• agricultural products

• vital water and land resources

Natural Gas

known that few countries control most of the world’s natural gas reserves

Coal

• most of the coal is consumed in the country where it is produced

• the biggest reserves of coal are found in USA, Russia, China and India

Oil

over 50% of the world’s oil reserves are located in the Middle East

Impacts of Fossil Fuels - Climate Change

Greenhouse Gases:

• the burning of fossil fuels is the largest source of greenhouse gas emissions, particularly carbon dioxide and methane

Global Warming:

• these trapped gases increase the planet’s temperature, leading to global warming, more extreme weather events, and rising sea levels

Impacts of Fossil Fuels - Environmental Degradation

Air Pollution:

• combustion releases particulate matter like sulfur dioxide and nitrogen oxides

• pollutants contribute to acid rain, which harms forests and aquatic life

Water pollution:

• extraction can lead to groundwater contamination

• mining can pollute waterways with heavy metals like mercury

Habitat destruction:

• the processes of extracting, transporting, and processing fossil fuels lead to widespread land damage, habitat destruction, and biodiversity loss

Impacts of Fossil Fuels - Human Health

Respiratory and Cardiovascular Diseases:

• exposure to air pollutants from fossil fuel combustion causes respiratory illnesses, heart disease, and a higher risk of premature death

Carcinogens:

• combustion byproducts, like benzene, are carcinogens that can lead to cancer

Impacts of Timber - Climate Change

• forests absorb carbon dioxide, a major greenhouse gas

• deforestation releases this stored carbon into the atmosphere and reduces the planet’s capacity to absorb CO2

• accelerating global warming

Impacts of Timber - Environmental Degradation

Loss of Biodiversity:

• cleaning forests destroys habitats and food sources of many animals

• fragments remaining areas and pushing species towards extinction

Soil Erosion:

• tree roots help bind soil together. When forests are removed, soil becomes loose and is easily washed away by rain, leading to erosion, reduced land fertility, and increased risk of flooding

Water Cycle Disruption:

• trees play a vital role in the water cycle, absorbing and releasing water. Deforestation can alter rainfall patterns, increase droughts, and affect the health of watersheds

GDP

• total market value of all final goods and services

• limited in what it assesses; does not estimate the sustainability of the economy

• includes measures of:

  • consumer goods

  • services

  • new capital goods (e.g., machines, buildings)

Comprehensive Wealth

• focuses on the portfolio of assets that make income possible

• includes measures of:

  • produced capital

  • natural capital

  • human capital

  • net foreign assets

Changing wealth of nations

• CWON

• based on comprehensive wealth measures

• includes assets critical for sustainable development, such as human capital and key ecosystem assets

International Wealth Index

• index that can be used for low- and middle-income countries

• uses data from many surveys instead of one

• a household’s ranking on IWI indicates to what extent the household possesses a basic set of assets, valued highly by people across the globe

Net Worth

the total value of your household’s assets minus debts

Inequality

unequal distribution of resources

Gini coefficient

a statistical measure that represents the income inequality, the wealth inequality, or the consumption inequality within a nation or a social group

Is wealth distributed equally?

Wealth is not distributed equally. The uneven distribution of wealth highlights the systemic challenges faced by low-income countries in accumulating and sustaining economic resources

Is the gap between the haves and the have-nots getting larger or smaller?

• the concentration of wealth in high-income countries can lead to a cycle where these countries continue to attract more investments and resources, further widening the gap

What factors influence access to resources?

• age

• class

• disability

• gender

• origin

• religion

• race

• sexual orientation

Global Trends

• Wealth is highly concentrated in rich countries

• High-income countries:

  • Home to approximately 16% of world population

  • As of 2020, holds more than 67% total nominal wealth

• Middle-income countries

  • Home to approximately 34% of world population

  • As of 2020, holds more than 25% total nominal wealth

• Low-income countries

  • Home to 50% of world population

  • As of 2020, holds 7% total nominal wealth

Inequality in the US

• 2021, Federal Reserve data:

  • the top 1% of households in the United States held 30.9% of the country’s wealth

  • the bottom 50% held 2.6%

• the difference in the US median and mean wealth per adult is over 600%

• a 2011 study found that US citizens across the political spectrum dramatically underestimate the current level of wealth inequality

• during the covid-19 pandemic, the wealth held by billionaires in the u.s. increased by 70% - 2023 marking the steepest increase in billionaires’ share of wealth on record