Rising Wealth and Shifting Consumption Patterns
- Imagine a world where billions of people have lifted themselves out of poverty, joining a growing middle class.
- This transformation is reshaping global consumption patterns, driving demand for goods, energy, and food.
- But what does this mean for our planet and its resources?
Poverty Reduction: A Global Success Story
How Did We Get Here?
- Since 1990, global poverty rates have fallen dramatically - the number of people living in extreme poverty fell from nearly 2 billion (36%) to around 800 million (~10%).
- Economic growth, globalization, and technological advancements have played key roles in this progress.
Over 800 million people still live in extreme poverty (for less than $2.15 a day), highlighting the need for continued efforts.
The New Global Middle Class
Who Are the Global Middle Class?
- The global middle class includes individuals earning between 10 and 100 USD per day.
- This group is expanding rapidly, especially in middle-income countries (MICs) like China, India, and Brazil.
The middle class is a key driver of economic growth, as it increases demand for consumer goods and services.
NoteDon’t assume that all middle-class individuals have economic security. Many remain vulnerable to unemployment and underemployment, especially in the informal economy.
Shifting Consumption Patterns
Rising Demand for Consumer Goods
- As incomes rise, so does the demand for goods like electronics, cars, and appliances.
In India, energy demand is expected to double by 2040 as more households gain access to electricity and modern appliances.
Urbanization Driving Increased Energy Consumption
- As people move to cities and become wealthier, some barter services are replaced with market ones.
- This combined with industrialization, increased mobility and increased demand for goods has led to increased energy consumption.
Between 1990 and 2020 share of people living in urban areas in Vietnam doubled and at the same time energy consumption increased nearly sevenfold.
Dietary Shifts
- Middle-class growth is transforming diets, with increased consumption of meat, dairy, and processed foods.
Meat consumption in China has quadrupled since 1980, contributing to higher greenhouse gas emissions from livestock farming.
AnalogyThink of the global middle class as a rising tide. While it lifts many boats, it also increases the strain on shared resources like energy, water, and food.
Impacts on Resources and the Environment
Strain on Natural Resources
- The growing demand for goods and services places immense pressure on natural resources.
Many students overlook the indirect impacts of consumption, such as the water and energy used in manufacturing goods.
Higher Carbon Emissions
- Rising energy consumption, particularly from fossil fuels, contributes to climate change.
The carbon footprint of MICs is increasing as more people adopt high-consumption lifestyles leading to amplified energy consumption.
Waste Generation
- Increased consumption leads to more waste, including plastics and electronic waste (e-waste).
In 2019, the world generated 53.6 million metric tons of e-waste, with only 17.4% being recycled.
Challenges and Opportunities
Balancing Growth and Sustainability
- The rise of the global middle class presents both challenges and opportunities.
Challenges
- Resource Depletion: Unsustainable consumption patterns threaten long-term resource availability.
- Environmental Degradation: Higher emissions and waste contribute to climate change and pollution.
Opportunities
- Green Technologies: Investing in renewable energy and sustainable agriculture can reduce environmental impacts.
- Circular Economy: Promoting recycling and waste reduction can mitigate resource strain.
How can we balance the aspirations of a growing middle class with the need for environmental sustainability? What ethical considerations arise when prioritizing economic growth over ecological preservation?
The Role of Policy and Innovation
- Governments and businesses play a critical role in shaping sustainable consumption patterns.
