Consumption and Consumerism in global economy - position of agriculture in global economy

1. Consumption and Consumerism in global economy- position of agriculture in global economy Doc. Ing. Luboš Smutka, Ph.D. Department of Economics Faculty of Economics and Management Office: E 376 smutka@pef.czu.cz

2. Test for the beginning

3. Test for the beginning – part I • Do you know the size of global economy? Specify the global GDP value: Specify the global merchandise and services trade value: Specify the number of people living around the World: Can you specify the value of global consumption?

4. Test for the beginning – part II • Do you know the position of agricultural sector in global economy? • Specify the share of agriculture in global GDP: • Do you know the value of global agricultural GDP?: • Specify the share of agricultural trade in global merchandise trade: • Do you know the value of global trade in agricultural and foodstuff products? • Do you know the share of people working in agricultural sector?

5. Test for the beginning – part III • Do you know the share of secondary sector (industry) in global economy? • Do you know the share of services sector (tertiary sector) in global economy? • Global crises affected all countries around the world. The most affected countries were developed or developing countries?

6. Test for the beginning – part IV • Do you know the country with the highest value of per capita consumption? • Do you know the number of people living in developing countries? • Do you know the value of global GDP per capita?

7. Test for the beginning – part V • Do you know the share of developed countries in global economy and trade? • Do you know the number of people living in developed countries? • Do you know the share of the most rich 20% in global consumption? • Do you know the number of people suffering by undernourishment? • Do you know a difference between specific and chronicle hunger?

8. Correct answers

9. Test for the beginning – part I • Do you know the size of global economy? Specify the global GDP value: 70 tril. USD Specify the global merchandise and services trade value: 22 tril. USD Specify the number of people living around the World: 7.1 bil. Can you specify the value of global consumption? 30 – 35 tril. USD

10. Test for the beginning – part II • Specify the share of agriculture in global GDP: 3-4% • Do you know the value of global agricultural GDP?: cc 3 tril. USD • Specify the share of agricultural trade in global merchandise trade: 9-10% • Do you know the value of global trade in agricultural and foodstuff products? 1.7-1.9 tril. USD • Do you know the share of people working in agricultural sector in the world? cc 30-40%

11. Test for the beginning – part III • Do you know the share of secondary sector (industry) in global economy? (20%) • Do you know the share of services sector (tertiary sector) in global economy? (70%) • Global crises affected all countries around the world. The most affected countries were developed or developing countries? (developed)

12. Test for the beginning – part IV • Do you know the country with the highest value of per capita consumption? (Luxemburg) • Do you know the number of people living in developing countries? (over 5.5 bil.) • Do you know the value of global GDP per capita? (cc 10 000 USD)

13. Test for the beginning – part V • Do you know the share of developed countries in global economy and trade? (70%) • Do you know the number of people living in developed countries? (1.2 – 1.5 bil.) • Do you know the share of the most rich 20% in global consumption? (over 75%) • Do you know the number of people suffering by undernourishment? (cc 950 mil.) • Do you know a difference between specific and chronicle hunger? (missing some components vs. low level of foodstuff products)

14. GDP = C + I + G + NX Gross domestic product Consumption Investments Government expenditures Trade

15. World GDP and Trade (millions of USD) • World GDP 70 tril. USD • Merchandise trade17.8 tril. USD • Trade in services 4.2 tril. USD • Total world trade22 tril. USD

16. World GDP

17. GDP Distribution

18. GDP growth rate, US$ (UN DPAD/Link estimates)

19. GDP/capita

20. GDP per capita, annual growth rate, 2000 US$ (UN DPAD/Link estimates)

21. GDP/cap., USD (FAO)

22. GDP per capita, constant prices, US$ (UN estimates)

23. Consumption development trends World consumption has expanded at anunprecedented pace over the 20th century,with private and public consumptionexpenditures reaching over $35 trillion in 2012,twice the level of 1975 and six times that of1950. In 1900 real consumption expenditure was barely $1.5 trillion. The benefits of this consumption have spread far and wide. More people are betterfed and housed than ever before. Living standards have risen to enable hundreds ofmillions to enjoy housing with hot water andcold, warmth and electricity, transport to andfrom work-with time for leisure and sports,vacations and other activities beyond anythingimagined at the start of this century.

28. Annual Personal Consumption Expenditure in Constant 2005 International Dollars

32. Problems connected with global consumption development

33. World population development

39. World historical and predicted populations (in millions)

41. Population characteristics

45. Population Growth

48. GDP/cap

50. Inequalities • Using latest figures available, in 2008, the wealthiest 20% of the world accounted for 76.6% of total private consumption. The poorest fifth just 1.3% • Breaking that down slightly further, the poorest 10% accounted for just 0.5% and the wealthiest 10% accounted for 59% of all the consumption • More specifically, the richest fifth: Consume 45% of all meat and fish, the poorest fifth 5% Consume 58% of total energy, the poorest fifth less than 4% Have 74% of all telephone lines, the poorest fifth 1.5% Consume 84% of all paper, the poorest fifth 1.1% Own 87% of the world’s vehicle fleet, the poorest fifth less than 1%