By: Natalya Kovalenko, A report by the transnational research organization McKinsey Global Institute lays out the challenges in a world that will see three billion people join the middle classes over the next two decades, spurring further huge demands for resources. A report by the transnational research organization McKinsey Global Institute lays out the challenges in a world that will see three billion people join the middle classes over the next two decades, spurring further huge demands for resources. The world might be entering a new era of high and volatile prices over the next two decades, as most of the water, food and energy resources will be depleted, and obtaining new resources will become more difficult and costly. According to the experts, today, about 1.8 billion people on earth belong to the middle class, meaning they can spend from 10 to 100 dollars per day. By 2030, the ranks of the middle class will reach up to 5 billion people. Here is an opinion from expert Yulia Tsepliaeva: "As the world population is growing, the middle class is increasing as well. China and India with their combined population of 1 billion people are the main drivers for this massive rise. In the coming decade the growth will be speeded up." The energy-hungry middle class needs more and more goods, but the reserves of gas, coal and oil are not unlimited. The hydroenergetics is also to no avail, as the water shortages caused by global warming will be the greatest problem for crops in some areas. Many countries are rushing to give up nuclear energy plants. The report shows that the resource challenge can be met through a combination of expanding their supply and a step change in the way they are extracted, converted, and used, says Ruslan Alikhanov, partner of the McKinsey’s Moscow office: "The report lists 130 ways to boost productivity in resources but urges governments to prioritize, since 15 of them account for 75 percent of the total potential results. The top three, accounting for one-third of potential efficiency savings, are relatively prosaic: making buildings more energy efficient, boosting yields on large-scale farms and reducing waste after crops are harvested. Researchers also urge to increase the density of city populations, improve public transportation and call for a more efficient use of fuel by vehicles." According to the experts, access to resources will become a considerable advantage to many countries and companies with Russia standing on the top of the list. The future belongs to those who will not only produce and spend economically, but will also balance interaction between labor and capital. Source: Voice of Russia
