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The term disparities in consumption refers to the conditions of unequal use of economic goods to satisfy the needs of consumers. These disparities are stark—both within countries as well as across them. With world population at 6.8 billion and rising, the richest 20 percent of people consume 86 percent of all goods and services used, and the poorest 20 percent consumes just 1.3 percent. The world's middle 60 percent consume 22 percent of all goods and services used. Furthermore, the wealthiest 10 percent account for 59 percent, and the poorest 10 percent account for just 0.5 percent of all consumption. Here are some facts that illustrate this phenomenon: The wealthiest fifth of the world:

  • Consume 45 percent of all meat and fish; the poorest fifth consume 5 percent
  • Consume 58 percent of the total energy; the poorest fifth consume less than 4 percent
  • Have 74 percent of all telephone lines; the poorest fifth have 1.5 percent
  • Use 84 percent of all paper; the poorest fifth use 1.1 percent
  • Own 87 percent of the world's vehicles; the poorest fifth own less than 1 percent

Over 2.6 billion people lack basic sanitation, 1.3 billion have no access to clean water, 1.1 billion lack adequate housing, and nearly 900 million have no access to modern health services of any kind. Americans each consume 260 pounds of meat per year on average, most of it hamburger; the average in Bangladesh is 6.5 lbs. Meanwhile, according to the United Nations Development Programme, every year:

  • Americans and Europeans together spend $17 billion on pet food
  • Business entertainment in Japan amounts to $35 billion
  • Cigarettes in Europe cost $50 billion
  • Alcoholic drinks in Europe total $105 billion
  • The business of narcotic drugs in the world is worth $400 billion
  • Military spending in the world is over $800 billion

Compared with the above figures, the estimated additional costs required to achieve universal access to basic social services in all developing countries were as follows: basic education for all ($6 billion per year), water and sanitation for all ($9 billion a year), and basic health and nutrition ($13 billion a year).

History of the Growth of Inequality

History plays a significant role in understanding the differential levels of consumption throughout the world. A few key factors explain why some parts of the world have grown rich and others have lagged behind. There are several specific historical issues that are important in the study of poverty for the global marketing student of the 21st century—for example, how traditionally, poverty has been concentrated in the toughest places, the inadequacy of market forces to overcome it, the relationship between social spending and reducing poverty over time in different regions of the world, the causes and consequences of the growth in the gap between rich and poor individuals and nations, and so on.

The gross domestic product per capita during 1500 to 1820 remained constant in Asia and Africa and grew at 0.1 percent per year in Latin America and Eastern Europe and 0.2 percent per year in Western Europe. The population growth during the 18th and 19th centuries made the leaders of European societies concerned about the future availability of natural resources. The famous demographer and political economist during that period, Thomas Malthus, discussed the fate of humankind in his “Essay on the Principle of Population.” He famously predicted that because of the limited land on Earth, food production in the world would be hard to keep up with the geometric growth rate of human population. He did not, however, foresee the coming of the Industrial Revolution, which dramatically changed everything—from food production to standards of living—in the next two centuries.

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