L25: Poverty and Natural Resources Flashcards
Definition of poverty:
the state of one who lacks a usual or socially acceptable amount of money or material possessions.
Purchasing power parity (PPP)
The actual purchasing power of any currency is the quantity of that currency needed to buy a specified unit of a good or a basket of common goods and services.
Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries, accounting for differences in inflation rates and cost of living.
This can be used to compare economic productivity and standards of living between countries and across time.
What is the PPP Big Mac Index?
The Big Mac index suggests that, in theory, changes in exchange rates between currencies should affect the purchasing power parity. The index has flaws however as corporations can control the cost and quality of products, significantly affecting the Big Mac Index.
For example, if the price of a Big Mac is $4.00 in the U.S. as compared to 2.5 pounds sterling in Britain, we would expect that the exchange rate would be 1.60 (4/2.5 = 1.60). If the exchange rate of dollars to pounds is any greater, the Big Mac Index would state that the pound was overvalued, any lower and it would be under-valued.
Millennium Development Goals 2015 Outcomes shown
- global poverty rate declining considerably with extreme poverty less than half of its 1990 level by 2012.
Multidimensional poverty is not limited to income, but also includes
- education
- health care
- shelter
- employment
- personal security
Services provided by natural resources
- provision (supporting human life)
- regulating (basic ecosystem processes)
- cultural (nonmaterial ecosystem benefits)
- supporting (basic long-term ecosystem services)
What regulating services do natural resources provide?
Think earth, air, fire, water
or hydrosphere, lithosphere, atmosphere, biosphere
Regulation of:
- water
- waste treatment
- erosion
- natural hazard
- climate
- air quality
- pollination
- disease
- pest
What cultural services do natural resources provide?
- spiritual and religious aspects
- aesthetic values
- recreation and ecotourism
What supporting services do natural resources provide?
- water cycling
- soil formation
- photosynthesis
- nutrient cycling
- primary production
What are the key natural resources?
- land
- water
- forests
- fisheries
- climate
- crop genetic resources
- mineral resources
The key to human survival, sustainability and poverty reduction is access to natural resources.
.
Importance of access
Flow cycle:
- Resources access & availability
- Production and exchange decisions
- income, assets, capabilities
- consumption & investment decisions
Availability not the same as access and access varies privately and publicly
.
Importance of access
Flow cycle:
- Resources access & availability
- Production and exchange decisions
- income, assets, capabilities
- consumption & investment decisions
Challenges to effective governance and access to NR.
- population growth and density
- migration
- globalisation
- conflicts
- legislation
Common property is allocated through customary property rights/tenure systems. Common property and open access are important contributions to livelihoods. Poor may depend on these systems which are degrading or failed.
.
Purpose: enhance to and improve sustainable management of natural resources.
4 Challenges:
C1: expand access
C2: increase security of access
C3: improve sustainable management
C4: enabling poor to participate in new opportunities
Exercise 1:
Explain the concept of multi-dimensional poverty.
Like development - poverty is multi-dimensional. Multidimensional poverty is not limited to income, but also includes education, health care, housing, employment and personal security.
As such, income poverty does not always translate into multidimensional poverty.
Exercise 2:
Explain the difference between access to natural resources and the availability of natural resources.
Availability refers to the location’s ability to supply the services provided by natural resources. These services include:
- provision (supporting human life)
- regulating (basic ecosystem processes)
- cultural (nonmaterial ecosystem benefits)
- supporting (basic long-term ecosystem services).
If the natural resources in a given area do not have these capabilities then there is limited natural resource availability.
Access refers to the ability to obtain the services provided by natural resources. Access varies privately and publicly.
Exercise 2:
Explain the difference between access to natural resources and the availability of natural resources.
Availability refers to the location’s ability to supply the services provided by natural resources. These services include:
- provision (supporting human life)
- regulating (basic ecosystem processes)
- cultural (nonmaterial ecosystem benefits)
- supporting (basic long-term ecosystem services).
If the natural resources in a given area do not have these capabilities then there is limited natural resource availability.
Access refers to the ability to obtain the services provided by natural resources. Access varies privately and publicly. (return to and expand this)
Exercise 2:
Explain the difference between access to natural resources and the availability of natural resources.
Availability refers to the location’s ability to supply the services provided by natural resources. These services include:
- provision (supporting human life)
- regulating (basic ecosystem processes)
- cultural (nonmaterial ecosystem benefits)
- supporting (basic long-term ecosystem services).
If the natural resources in a given area do not have these capabilities then there is limited natural resource availability.
Access refers to service delivery, the ability to obtain the services provided by natural resources. Access varies privately and publicly. (return to and expand this)
