Problem
Inadequate demand for primary commodities because of rising living standards
Nature:
Consumer demand for some commodities does not rise as incomes rise (the per capita income elasticity of demand is low in the richer countries). In some cases, most notably with cereals as a source of food calories, rising standards of living tend, in high-income countries, to reduce per capita consumption to the point of offsetting the effects of population growth (which tends to be slow in such countries). This phenomenon leads to an unusually slow increase in demand for the primary commodities produced by the developing countries.
Broader Problems:
Limited local demand Related Problems:
Deteriorating quality of lifeReduction in demand for primary commodities due to technological change Aggravates:
Over-production of commoditiesRestricted growth in export marketsInstability of the commodities tradeEconomic and industrial production instability Reduces:
Excessive demand for goods in capitalist systemsNatural resource depletion due to high-level consumption Strategies:
Trading commoditiesUncoupling economic growth from growth in resource useImproving demand for primary commodities Subject(s):
Amenities → Living conditionsIndustry → Commodities
Societal Problems → Inadequacy
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST