Poverty
In which we explore the relationship between energy and poverty.
- Energy and the “Great Ascent” from poverty in the 19th Century
- The second “Great Ascent” in the 1950’s
- The lingering “Great Gap”
- A new source of energy - Focus Fusion - is required to close the Great Gap and complete the Ascent!
- The Fear of Over-Consumption
Energy and the “Great Ascent” from poverty in the 19th Century
Today, the vast majority of energy is produced the same way it was at the end of the 19th century, by burning fossil fuels to turn heat into work. Humanity owes a great deal to these 19th century sources of energy. Without this energy, the prosperity and quality of life at the scale that many of us experience today would not be possible. (e.g., In general, life expectancy has increased, infant mortality has fallen drastically, we are taller and healthier and get fewer infections than people did just 50 years ago, we have more to eat, we have an amazing selection of consumer goods, many more of us are literate, and the number of hours in the work week have been halved during the last 120 years when back-breaking, labor-intensive agriculture was the norm.)
In a 1997 UN report on poverty and inequality, we read that: “The accelerated progress in reducing poverty in the 20th-century began in Europe and North America in the 19th-century - in what can now be seen as the first Great Ascent from poverty and human deprivation. The ascent started in the foothills of the Industrial Revolution, with rising incomes, improvements in public health and education and eventually programs of social security.” [UNDP, 1997]
The “Industrial Revolution” can be defined as “the application of power-driven machinery to manufacturing.” The “power”, of course, being supplied by fossil fuels and steam engines. Harnessing this energy changed the world. Jeffrey Sachs, in his book The End of Poverty says:
Until the onset of the Industrial Revolution, humanity had known only unending struggles against famine, pandemic disease, and extreme poverty, all compounded by endless cycles of war and political despotism.
With the Industrial Revolution, machines run by fossil fuels were harnessed to produce work, making people exponentially more productive. This freed up human energy for many more inventive and creative things and fueled an amazing sense of possibility.
...with the early glimmerings of a new scientific and technological age, bold and brilliant Enlightenment thinkers throughout Europe and the emerging United States began to envision the possibility of sustained social progress in which science and technology could be harnessed to achieve sustained improvements in the organization of social, political, and economic life.” [Sachs, 2005]
While the ideas of the enlightenment themselves were powerful, the power supplied by fossil-fuel energy was a key ingredient in making the vision a reality. With this one-two punch of fossil fuels and enlightened thinking, prosperity spread to most of Europe and North-America, a middle class grew and thrived, and despotism and monarchy gave way to democracies.
The Second “Great Ascent” in the 50’s
The second “Great Ascent” out of poverty started in the 1950s in the developing countries as colonialism wound down, education and health improved and economic growth accelerated. These improvements, of course, caused a population explosion which added major challenges to the poverty equation. Suddenly, you had a lot more people with material needs to fulfill. Nevertheless, poverty continues to decline, especially more recently in countries such as India and China.
That’s right. Today, poverty continues to decrease world-wide. It may not seem this way, because the net number of people trapped in extreme poverty has been steadily hovering at about 1.2 billion for the last 20 years. But keep in mind that the population has also been increasing, so the percentage of people who are poor has decreased. [Lomborg, 1998]
The problem is that it is decreasing too slowly and that the huge number of people in extreme poverty remains constant. Every day - while some wring their hands, and the rest just don’t care - over 20,000 more people needlessly die because of poverty. Over a billion continue to suffer intolerable living conditions. Slavery has made a comeback and pointless wars continues to claim lives.
The Persistent “Great Gap”
The Haves & starting to Haves
The first “Great Ascents” out of poverty have brought humanity a long way. A billion of us, a sixth of the planet, live in the high-income world. Another 2.5 billion live in the “middle-income” world, (but would not be recognized as middle-class by the standards of rich countries). They earn about a few thousand dollars a year. They have a long way to go to close the gap with the high-income world, but they are on their way.
The Have Nots
This leaves 40% of the planet in poverty. Today, despite all our enlightened thinking and technology, we still have 1.2 billion people in extreme poverty with no end in sight. These people are considered the “poorest of the poor” whose daily life is a struggle for survival. “If economic development is a ladder with higher rungs representing steps up the path to economic well-being,” these people are “too ill, hungry, or destitute even to get a foot on the first rung of the development ladder.” (Sachs, 2005)
Another 1.5 billion are “the poor” who live above mere subsistence. “Death is not at their door, but chronic financial hardship and a lack of basic amenities such as safe drinking water and functioning latrines are part of their daily lives.” (Sachs, 2005)
What Poverty Looks Like
Millions of people die each year of easily preventable diseases which they are too poor to do anything about. Millions don’t have access to safe, clean drinking water and sanitation. Millions of women still walk for many hours each day to collect fuel wood for energy, adding to the deforestation and desertification in their regions. As in pre-Industrial Revolution times, millions of people still know “only unending struggles against famine, pandemic disease, and extreme poverty, all compounded by endless cycles of war and political despotism.”
Slavery, too, has made a vigorous comeback in the past 50 years. Today, there are an estimated 27 million slaves. This is more than all the slaves in four centuries of the North Atlantic slave trade. Slavery today is different from slavery in the past in two key ways: Slaves today are cheap and disposable. “An average slave in the American South in 1850 cost the equivalent of $40,000 in today’s money; today a slave costs an average of $90.” This low cost is what makes them disposable and easily killed. Many of them are “debt slaves” working off the debts of their parents or grandparents. They work in agriculture, mining, factories and prostitution with little chance for escape or improvement in their quality of life. (Click here for more information on modern slavery).
Slavery persists because millions of people in developing countries are powerless, have no job security and are vulnerable to exploitation. Government corruption around the world allows slavery to go unpunished, even though it is illegal everywhere.
Ending Poverty
In his book The End of Poverty, Jeffery Sachs outlines a plan to end extreme poverty in 20 years. In other words, he thinks it’s possible to take those 1.2 billion people out of extreme poverty up to the level of poverty in 20 years. From there, it’s not clear how many decades it might take to get everyone up from “poverty” to “middle-income” and beyond, but the prospects would be much improved.
The plan relies on “economic justice” and “enlightened globalization.” It calls for more development spending, greater power for the UN (against the wishes of the more powerful countries in the world), re-configuring global and governmental institutions to be more concerned with the needs of the poor, (e.g., the IMF and World Bank need to stop being “the handmaidens of creditor governments” and instead, champion the afore-mentioned “economic justice”).
In order to work, this plan needs to overcome “global inertia, proclivities to war and prejudice, and understandable skepticism around the world that this time can be different from the past.”
Indeed, we here at the Focus Fusion Society think that this time can be different. that’s because this time, we’ll give these lofty concepts of enlightened globalization some real teeth by cutting loose the unlimited supply of focus fusion energy and harnessing it to solve humanity’s biggest problems.
A New Source of Energy is Required to Close the Gap and Complete the Ascent!
The first “Great Ascent” out of poverty rode on a wave of a newly opened frontier of energy supply: fossil fuels harnessed to the steam engine. The ascent seems to have stalled now, foundering in a world of limited resources, distribution problems, apathy and corruption. Unfortunately, it has run out of steam far short of the mark. What the world needs now is a vast new supply of power that picks up and revitalizes the ascent, taking it well over the top. We don’t just want to pull the “extreme poor” up to the level of “poor”. We want everyone up at “affluence”.
We’ve had the Industrial Revolution. Now we need the Fusion Revolution.
The “End of Poverty” plan outlined by Sachs above relies on the will of humanity. But this will has heretofore been lacking, due to petty, short-sighted self interest of many parties involved. We think this will can be activated much more quickly with the appearance of an amazing new clean, cheap, safe, easily deployed energy supply.
Economic impact of clean, cheap, safe, abundant energy:
[Note: If you are an economist and have some thoughts on the connection between abundant, cheap, clean fuel for everyone and the end of poverty, please contact us to help us clarify this section.]
With Focus Fusion, optimistic end-of-poverty global development will appear much more feasible. Key barriers to growth will be eliminated. These barriers include counterproductive policies and irrational actions that arise from fears of limited resources and the sense that economic progress is a zero sum game and there must be winners and lots of losers. Another key barrier is transportation costs. The areas which suffer the most poverty in our world also tend to be the most landlocked, with the little access to navigation (e.g., ocean ports or rivers). With ridiculously cheap energy, transport costs will become much more even throughout the world, enabling people in impoverished countries to engage in trade a lot more easily, and foreign companies will find it much more feasible to invest in them. This sort of thing will have a huge impact on their regional economic development.
Problems with energy supply will also be eliminated. Energy supplies in the world today are centralized, expensive and vulnerable based on geo-political instability, leading to economic insecurity and impeding global development. This uncertainty would be eliminated and economic development could become much more stable.
Oil exporting countries would still have a valuable resource, but control of the resource would no longer be that critical for foreign powers. Thus, these countries would see a lessening of efforts by foreigners to control them. They would also have major incentive to improve their economies, develop their human resources and so forth.
Fears of global warming would be offset as polluting power plants are shut down and replaced with clean focus fusion reactors. It will soon be obvious that you can have prosperity at industrial country levels for everyone AND a clean environment at the same time.
With the sudden drop in energy prices, the cost of goods will drop dramatically and things will be affordable to many more people. In general, there will be a lot more economic activity. Foreign investment in developing countries will increase and the will to bring people out of poverty will be motivated mostly by the desire to bring 2.7 billion new consumers online.
In sum, enlightened globalization plus a vast new supply of power will team up for the final one-two punch against poverty.
Focus Fusion as the Energy supply of choice:
This energy supply needs to be Focus Fusion, because as we’ve noted elsewhere, conventional approaches to fusion won’t be available for decades, and won’t really free up energy the way Focus Fusion can. Focus Fusion is designed to be cheap, clean, safe, and easily deployed to wherever it needs to be. It’s so simple, inexpensive and elegant it stands a much better chance of fulfilling global energy infrastructure requirements than anything imagined today. The sooner the energy infrastructure is in place, the sooner impoverished areas can begin to thrive. (For an article on the relationship between poverty and energy infrastructure, click here).
It’s important to note here that the existence of Focus Fusion by itself won’t solve all these problems. We will have to make a concerted effort to deploy the technology in the most effective way to the places that need it the most, during a transition phase guided by the afore-mentioned “enlightened globalization.”
Finally, we acknowledge that Focus Fusion is still in a theoretical phase. The purpose of this website is to raise money for proof of concept. Until we raise the money and prove the concept, the matter is not certain. Please click here to support Focus Fusion today.
The Fear of Over-consumption
One of the barriers to pursuing Focus Fusion comes from the idea that it is dangerous for all people to have access to unlimited energy. The fear is that, if poverty goes away, everyone will consume like rabbits and this will devastate our resources, so it’s good to have a limited energy supply.
This view does not take into account the fact that unlimited energy means we can process waste and turn it into cleaner products. We can finally have the power to leave no footprint, to have 100% recycling.
Some people see limited resources as a good thing for people, because they force us to consume less, to learn to live within our means, to become more spiritual. In contrast, without limits, we are pure, unleashed appetite.
This may or may not be the case. It seems more likely that in the face of limited resources, people tend to hoard more and conflicts become more pronounced and there are some unpleasant winners and lots of pathetic losers. Not a pretty picture. Yes, with limited resources, there may be less consumption, but there is gross inequality. If we have the means to change it, it’s unfair to leave people in poverty just so that they don’t consume much.
Still, the issue of over-consumption is an important one that needs to be addressed. Here we take another page out of the Skeptical Environmentalist. According to Lomborg, studies have shown that affluence results in a cleaner environment. This is because as people’s income rises, they demand a better environment. In a sense, a clean environment is a luxury that can only be afforded by affluent people. (For example, poor people sometimes find themselves having to chop down their last tree for firewood).
Some will argue that this is an illusion, because the affluent are simply exporting their dirty environment elsewhere, through the exploitation of other people’s forests in poor countries, and the dumping of toxics in poor neighborhoods.
First off, as previously mentioned, unlimited energy means that we can transform waste into clean products. Secondly, this only strengthens the argument that it is important to bring everyone up to a good level of prosperity because it makes them less desperate to accept the exploitation of their resources or pollution of their neighborhoods.
As the poor become more affluent, it will be harder for unscrupulous companies and countries to dump toxic waste in poor neighborhoods. Each neighborhood will get stronger and the “not in my back yard” phenomenon will grow, forcing manufacturers to design products with cradle to grave technology and actually clean up their toxics. The boost of fusion energy is also useful for this toxic clean up, as we see here in the Fusion World section.
If you have comments and ideas to add to this section, please contact us.


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Comments
There are (8) comments.The involvement of global institutions like the ones Sachs is so enamoured of is much to be decried and aboided. Their records are abysmal. As Einstein said, doing more of what failed and expecting different results is insane.
Instead, combine de Soto’s legitimization of poor property rights and provide energy they can afford, and stand back. They’re the most highly motivated and innovative entrepreneurs on the planet, and will take care of their own wealth-accumulation at warp speed.
Brian H:
The records of the Bretton Woods institutions are indeed questionable. The record of the UN is good.
In a doctrine like de Soto’s, the devil is in the detail. I know I’d rather live somewhere property is recognised by the law. But in divvying up common land, how exactly do you decide who gets what? It usually all gets given to the local top dog (who can, after all, read and write), with everyone else left with no share of anything.
http://en.wikipedia.org/wiki/Enclosure
The same thing may have started the Palestinian-Israeli conflict: in the early 1900s, better off palestinians nicked land, and sold it to immigrants, mostly Jews. Result - two sets of people with a claim to the same bit of ground, already at that time.
And there is little reason to believe that the presence of collateral automatically leads to capital investment. People start businesses to make a profit; if the opportunities are there then capital will find a way.
Huh. I think it ate my longer comment. Good thing I saved it.
OK I said I’d hold forth on this at some point so here goes. Some thoughts.
Section 1: Energy and the “Great Ascent” from poverty in the 19th century.
“we are taller and healthier and get fewer infections than people did just 50 years ago,”
This is true, but couldn’t possibly be due directly to the age of coal and steam - wrong time period.
50 years ago malnutrition was common because the poorest families could not afford good food, and because of unhealthy dietary trends. What changed was the income distribution, and education about diet, not the supply of food, as compared with pre-war years.
The tallness may not necessarily be the sign of a good thing. We also enter puberty earlier, a known side effect of endocrine disruption due to chemical pollution in our environment.
“While the ideas of the enlightenment themselves were powerful, the power supplied by fossil-fuel energy was a key ingredient in making the vision a reality. With this one-two punch of fossil fuels and enlightened thinking, prosperity spread to most of Europe and North-America, a middle class grew and thrived, and despotism and monarchy gave way to democracies. “
Well I guess this could be read in a way so that it makes sense. But the first time I read it, I’m sorry but it does sound like you think the Enlightenment happened in the 19th century. Sachs’s quote makes sense because he’s clearly talking about Enlightenment times, with “early glimmerings”, not what we think of as Industrial Revolution times.
It’s probably worth recalling again that industrialization happened in a context of increasing poverty until social reforms began to be carried out.
I don’t think Sachs is on the right track in your first quote.
“Until the onset of the Industrial Revolution, humanity had known only unending struggles against famine, pandemic disease, and extreme poverty, all compounded by endless cycles of war and political despotism.”
Well ... and as we all know, for the workers, food quality was still very poor, diseases (like cholera and TB) were widespread, and working conditions in 19th centuries textile mills are the stuff of legend. By comparison, a medieval farmer’s “backbreaking” work would have been a walk in the park.
The end of despotism wasn’t due to the Industrial Revolution, it was due to the Enlightenment which preceded it - and this started because of the renaissance, the civil war and the restoration, and Newton’s mechanics.
If he’d said “end” instead of “onset” he’d of course have been right.
It’s true that some Enlightenment thinkers looked forward in some respects to the social reformist movement of the 19th century - e.g. Tom Paine (very good bloke) supported a state pension, Adam Smith suggested state emergency services. But we don’t really think of these as Enlightenment ideas. The ideas people usually think of as the core ideas of the Enlightenment were equality before the law (no more lords and commoners), an end to theocracy and monarchy (and, eventually, universal suffrage for men), liberal free trade (instead of mercantilism), and in general, to expect all authority to be based on rational foundations (the “social contract”).
Section 2: The Second “Great Ascent” in the 50’s
“Today, poverty continues to decrease world-wide…..that the huge number of people in extreme poverty remains constant”
The number in poverty, as opposed to extreme poverty, has grown. From “Making Globalisation Work” by Stiglitz, 2005 (p.11):
Some 40 percent of the world’s 6.5 billion people live in poverty (a number that is up 36 percent from 1981). Here he’s apparently talking about living on $2 (in 1993 money) per day as the definition of poverty.
Interestingly it seems that mostly this increase (despite development in India and China) is due to popn growth in Africa - thanks Bush for stopping the supply of condoms.
Section 3: The persistent great gap
“The plan relies on “economic justice” and “enlightened globalization.” It calls for more development spending, greater power for the UN (against the wishes of the more powerful countries in the world), re-configuring global and governmental institutions to be more concerned with the needs of the poor, (e.g., the IMF and World Bank need to stop being “the handmaidens of creditor governments” and instead, champion the afore-mentioned “economic justice”).”
Well hurrah for that. (I’m glad then that he presumably wouldn’t have backed the “shock therapy” for Eastern Europe that led to a 40% drop in incomes over a decade, or the attempted privatisation of rain water in Bolivia, which both happened while he was at the World Bank.)
Another perspective on relieving poverty is that free and fair trade - the ending of an un-level playing field - could be as, or more, important than aid. This is the perspective Stiglitz adopts in his book, and also what Oxfam now campaigns for. (If it’s not as well-known in the US, Oxfam would be an anti-poverty NGO, honorary president Amartya Sen, the Nobel Laureate development economist.)
http://www.oxfam.org/en/campaigns/trade/rigged_rules
http://www.oxfam.org/en/pressroom/pressrelease/2009-08-31/oxfam-reaction-wto-judgement-us-cotton-subsidies
The rich countries spend $300 billion per year on agricultural subsidies. The scope for a better free market is not small. And yes, reform of the Bretton Woods institutions seems to be a perennial issue.
But regardless of the solution, these are political changes. Will someone coming along with an invention really make them come about? That part I find it hard to believe in.
Section 4: We’ve had the Industrial Revolution. Now we need the Fusion Revolution.
“The “End of Poverty” plan outlined by Sachs above relies on the will of humanity. But this will has heretofore been lacking, due to petty, short-sighted self interest of many parties involved. We think this will can be activated much more quickly with the appearance of an amazing new clean, cheap, safe, easily deployed energy supply. “
Well, that sounds like cloud cuckoo land. If they’re a bastard before, they’ll still be a bastard after.
What seems realistic is that you might get some self-interested governments and businesses keen to adopt it for cost reasons alone. In China, in India, in the West. But as to the poorest parts of the world?
“These barriers include counterproductive policies and irrational actions that arise from fears of limited resources and the sense that economic progress is a zero sum game and there must be winners and lots of losers. “
Economic progress isn’t a zero sum game. But resources are always limited. Indeed, economics is about the allocation of limited resources. I think you need to predicate your plans for the world not on conjectures about psychological changes, but on what you can actually DO, materially, and when.
“The areas which suffer the most poverty in our world also tend to be the most landlocked, with the little access to navigation (e.g., ocean ports or rivers).”
Yes, like Bangladesh is far better off than Minnesota. What do we mean by “most poverty”?
I’d agree that transportation could help somewhere in the middle of Africa get involved in global trade, but then again are they really in a position to do that except by undercutting other almost-equally-poor places, and how much will it really help anyone?
“Energy supplies in the world today are centralized, expensive and vulnerable based on geo-political instability”
Expect Russia to oppose your project.
“Foreign investment in developing countries will increase and the will to bring people out of poverty will be motivated mostly by the desire to bring 2.7 billion new consumers online. “
I know what Henry Ford said, but mostly companies invest where wages are low, not to create new consumers.
“It’s important to note here that the existence of Focus Fusion by itself won’t solve all these problems. “
That’s realistic.
“We will have to make a concerted effort to deploy the technology in the most effective way to the places that need it the most”
So this is something very interesting. How exactly is that to happen? Besides, what is the definition of the places that need it most? You could send blueprints for free to Angola, and they will have nothing to use them for but kindling.
“, during a transition phase guided by the afore-mentioned “enlightened globalization.”
Well, and if sweeping political/psychological changes do not come about… what then can you do? To me that is more interesting. It’s more real.
What I think would be worthwhile - if its elsewhere on the site I have not seen it - would be a realistic business model of the first 5-10 years of mass production. What are the costs per unit? What are the marginal costs, including maintainence? What is the lifetime of the unit? What is its max output? What are the infrastructure needs when installing a unit for residential use (does it produce DC electricity)? What are your plans for financing?
What countries have a knowledge base adequate for a factory to be built there? (Does it have something to do with which countries have DPF programmes?)
My predictions: what you will probably find is that it’s adopted for new plant only - if plant is retired sooner, it probably won’t be by much. FF will only be a proportion of new plant, because of lobbying and other factors that are not to do with straightforward economics or rationality. The total amount of new plant built will increase at least somewhat, but since there is an upper bound on profitability (energy prices will only fall when you provide more), there may be also an upper bound on the amount of investment it can attract.
Knowing this business model, and assuming that big geopolitical changes are not necessarily going to happen, would provide a good platform to discuss what can definitely be done to reduce poverty.
Warwick, you slip in so many inappropriate comparisons that it’s more effort than it’s worth to critique. The underlying thesis you implicitly espouse is the classic classist explanation that the fat cats are skimming and keeping the pore folks down.
Such viewpoints depend on the rubber ruler approach, whereby the demands for “equity” are adjusted continuously to make sure the desired result is obtained.
Rezwan, the record of the UN is good only in very selected instances. It is hard to take seriously a body that does this kind of nonsense: http://www.independent.co.uk/news/world/politics/fury-over-zimbabwes-un-role-448628.html , or this http://www.nytimes.com/2006/02/26/opinion/26sun2.html .
Not to mention the totally politicized IPCC, headed by a know-nothing railway engineer, Pachauri, with conflicts of interest up the yin-yang (heavy profit flows from favored “green” initiatives into companies he owns shares in or on whose boards he sits).
De Soto’s plans, btw, are not “divvying up common land”; they basically acknowledge de facto long-term squatters in barios and slums as beneficial owners, enabling them to get small mortgages and spring into existence within the legal and economic framework. Providing such areas with cheap power would set off a bonanza of improving living standards of unprecedented proportions.
Brian H:
Well that idea sounds appealing to me. It’s possible what I read of him on wikipedia wasn’t entirely accurate.
I don’t think it’s inevitable that fat cats skim and keep the poor folks down, but it’s demonstrable that this is what happens by default. It’s been happening to some large extent in both the UK and the US for the last 30 years - the bottom 25% are in absolute terms the same or a little worse off, despite all the years of growth. There are no easy answers, but I do believe that the mixed economy with a moderate level of redistribution, and support for wages, has been the most successful model for improving living standards - more successful by far than unbridled capitalism, or attempts at communism.
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