The Decline of Extreme Poverty in Perspective
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
If you follow the news, the world can seem pretty grim at times.
This pessimistic view of global affairs is common. We’ve been trained by the media to believe that things are always getting worse – and not surprisingly, people extrapolate these perceptions onto issues like poverty.
One survey in the U.K. is the perfect barometer for this kind of public pessimism: in 2016 an Oxfam poll found that 87% of people thought that global poverty was staying the same or getting worse. However, the reality couldn’t be further from those perceptions.
Poverty in Perspective
The World Bank announced this week that extreme poverty is at its lowest rate in 28 years.
The current estimate is that 8.6% of the global population now lives in extreme poverty, using a measure based on a $1.90 per day wage (in 2011 PPP). The figure is adjusted using the cost of living and inflation, and it also takes into account the minimum needed for daily essentials in places where poverty is prevalent.
For comparison, in 1990, more than 1.9 billion people (36% of global population) lived below the extreme poverty line. That means more than one billion people have come out of poverty since then.
The preceding context is powerful, but where are we today in the fight against extreme poverty?
According to the World Bank’s latest comprehensive numbers that were just released for 2015, here is the latest data by region:
|Region||People in poverty (2015)||% of world total|
|East Asia and Pacific||47.2 million||6.4%|
|Europe and Central Asia||7.1 million||1.0%|
|Latin America and Caribbean||25.9 million||3.5%|
|Middle East and North Africa||18.6 million||2.5%|
|South Asia||216.4 million||29.4%|
|Sub-Saharan Africa||413.3 million||56.2%|
|World Total||735.9 million||100.0%|
As you can see, just over 85% of the population in extreme poverty is living in the Sub-Saharan Africa and South Asia regions. It’s worth noting that both of these regions are also rapidly growing in terms of population, as well.
Finally, here’s a look at recent progress during the period of 2013-2015:
|Region||Poverty rate (2013)||Poverty rate (2015)||Change|
|East Asia and Pacific||3.6%||2.3%||-1.3%|
|Europe and Central Asia||1.6%||1.5%||-0.1%|
|Latin America and Caribbean||4.6%||4.1%||-0.5%|
|Middle East and North Africa||2.6%||5.0%||+2.4%|
The one anomaly above (Middle East and North Africa) is a result of wars in Syria and Yemen – however, as you can see, the region did previously hit a low under 3%.
Overall, as the data shows, there has been progress in the fight against extreme poverty in both the long and short terms. That said, experts do warn that the rate of poverty reduction is slowing in more recent years, which will make the trend harder to keep intact.
Silver Series: Perfect Storm for Silver (Part 2 of 3)
In the second part of the Silver Series, we show that the supply and demand fundamentals are potentially shaping up for a perfect storm in silver prices.
The Silver Series: A Perfect Storm for Silver (Part 2 of 3)
In Part 1 of the Silver Series we showed how precious metals can be a safe haven during times of volatility in a debt-laden era.
Today’s infographic is Part Two of the Silver Series, and it comes to us from Endeavour Silver, outlining some of the key supply and demand indicators that precede a coming gold-silver cycle in which the price of silver could move upwards.
Silver is produced primarily as a by-product in the mining of non-precious metals, and there is currently a dwindling supply of silver as a result of low base metal prices.
However, silver is more than just a precious metal and a safe haven investment. Its industrial uses also create a significant demand on silver stocks.
As the production of green technologies such as solar cells and EVs quickly escalates, upward pressure is being placed on the price of silver, indicating the potential start of a new gold-silver cycle in the market.
Just like gold, silver has functioned as a form of money for centuries, and its role as a store of value and hedge against monetary inflation endures.
Currency debasement is not new. Governments throughout history have “printed” money while silver’s value has held more constant over time.
In today’s age, the average investor does not own physical silver. Rather, they invest in financial instruments that track the performance of the physical commodity itself, such as silver exchange-traded funds (ETFs).
Until recently, ETF investment in precious metals has been relatively flat, but there has been a surge in the price of silver. Meanwhile, demand for silver-backed financial products have increased the demand for physical silver and could continue to do so.
Silver is also helping to power the green revolution.
The precious metal is the best natural conductor of electricity and heat, and it plays an important role in the production of solar-powered energy. A silver paste is used in photovoltaic solar cells which collects electrons and creates electricity. Silver then helps conduct the electricity out of the cell. Without silver, solar cells would not be as efficient.
As investments and the green revolution demand more and more silver, where is the metal coming from?
A Perfect Storm for Silver: Supply Crunch
The bulk of silver production comes as a by-product of other metal mines, such as zinc, copper, or gold mines.
Since silver is not the primary metal emerging from some of these mines, it faces supply crunches when other metal prices are low.
Silver supply is falling for three reasons:
- Declining mine production due to low base metal prices
- Declining silver mine capacity
- Declining reserves of silver
The demand for silver is rising and the few companies that produce silver could shine.
Don’t miss another part of the Silver Series by connecting with Visual Capitalist.
How Much Oil is in an Electric Vehicle?
It is counterintuitive, but electric vehicles are not possible without oil – these petrochemicals bring down the weight of cars to make EVs possible.
How Much Oil is in an Electric Vehicle?
When most people think about oil and natural gas, the first thing that comes to mind is the gas in the tank of their car. But there is actually much more to oil’s role, than meets the eye…
Oil, along with natural gas, has hundreds of different uses in a modern vehicle through petrochemicals.
Today’s infographic comes to us from American Fuel & Petrochemicals Manufacturers, and covers why oil is a critical material in making the EV revolution possible.
It turns out the many everyday materials we rely on from synthetic rubber to plastics to lubricants all come from petrochemicals.
The use of various polymers and plastics has several advantages for manufacturers and consumers:
- Easy to Shape
- Flame Retardant
Today, plastics can make up to 50% of a vehicle’s volume but only 10% of its weight. These plastics can be as strong as steel, but light enough to save on fuel and still maintain structural integrity.
This was not always the case, as oil’s use has evolved and grown over time.
Not Your Granddaddy’s Caddy
Plastics were not always a critical material in auto manufacturing industry, but over time plastics such as polypropylene and polyurethane became indispensable in the production of cars.
Rolls Royce was one of the first car manufacturers to boast about the use of plastics in its car interior. Over time, plastics have evolved into a critical material for reducing the overall weight of vehicles, allowing for more power and conveniences.
Rolls Royce uses phenol formaldehyde resin in its car interiors
Henry Ford experiments with an “all-plastic” car
About 20 lbs. of plastics is used in the average car
Manufacturers begin using plastic for interior decorations
Headlights, bumpers, fenders and tailgates become plastic
Engineered polymers first appear in semi-structural parts of the vehicle
The average car uses over 1000 plastic parts
Electric Dreams: Petrochemicals for EV Innovation
Plastics and other materials made using petrochemicals make vehicles more efficient by reducing a vehicle’s weight, and this comes at a very reasonable cost.
For every 10% in weight reduction, the fuel economy of a car improves roughly 5% to 7%. EV’s need to achieve weight reductions because the battery packs that power them can weigh over 1000 lbs, requiring more power.
Today, plastics and polymers are used for hundreds of individual parts in an electric vehicle.
Oil and the EV Future
Oil is most known as a source of fuel, but petrochemicals also have many other useful physical properties.
In fact, petrochemicals will play a critical role in the mass adoption of electric vehicles by reducing their weight and improving their ranges and efficiency. In According to IHS Chemical, the average car will use 775 lbs of plastic by 2020.
Although it seems counterintuitive, petrochemicals derived from oil and natural gas make the major advancements by today’s EVs possible – and the continued use of petrochemicals will mean that both EVS and traditional vehicles will become even lighter, faster, and more efficient.
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