Poverty Changes

£14,000 is quite a large amount of money. Enough for 70,000 Freddos, a decade’s worth of holidays, two new Nissan Pixo’s, several thousand potatoes or a gold standard racing pigeon. However, if you’re trying to live off just that amount in modern Britain, it quickly seems quite a lot smaller. Half of that could easily disappear on rent, whilst the average British family will spend a further £4,000 on food (significantly greater than the European average, for one reason or another). Then we must factor in tax, work-related expenses, various repair bills, a TV license, utility & heating bills, petrol money and other transport expenses, and it quickly becomes apparent that trying to live on this amount will require some careful budgeting. Still, not to worry too much though; it’s certainly possible to keep the body and soul of a medium sized family together on £14k a year, if not absolutely comfortably, and in any case 70% of British families have an annual income in excess of this amount. It might not be a vast amount to live on, but it should be about enough.

However, there’s a reason I quoted £14,000 specifically in the figure above, because I recently saw another statistic saying that if one’s income is above 14 grand a year, you are one of the top 4% richest people on planet Earth. Or, to put it another way, if you were on that income, and were then to select somebody totally at random from our species, then 24 times out of 25 you would be richer than them.

Now, this slightly shocking fact, as well as being a timely reminder as to the prevalence of poverty amongst fellow members of our species, to me raises an interesting question; if £14,000 is only just about enough to let one’s life operate properly in modern Britain, how on earth does the vast majority of the world manage to survive at all on significantly less than this? More than 70% of the Chinese population (in 2008, admittedly; the rate of Chinese poverty is decreasing at a staggering rate thanks to its booming economy) live on less than $5 a day, and 35 years ago more than 80% were considered to be in absolute poverty. How does this work? How does most of the rest of the world physically survive?

The obvious starting point is the one stating that much of it barely does. Despite the last few decades of massive improvement in the living standards and poverty levels in the world in general,  the World Bank estimates that some 20% of the world’s populace is living below the absolute poverty line of surviving on less than $1.50 per person per day, or £365 a year (down from around 45% in the early 1980s- Bob Geldof’s message has packed a powerful punch). This is the generally accepted marker for being less than what a person can physically keep body and soul together on, and having such a huge proportion of people living below this marker tends to drag down the global average. Poverty is something that the last quarter of the century has seen a definitive effort on the part of humanity to reduce, but it’s still a truly vast issue across the globe.

However, the main contributing factor to me behind how a seemingly meagre amount of money in the first world would be considered bountiful wealth in the third is simply down to how economics works. We in the west are currently enjoying the fruits of two centuries of free-market capitalism, which has fundamentally changed the way our civilisation functions. When we as a race first came up with the concept of civilisation, of pooling and exchanging skills and resources for the betterment of the collective, this was largely confined to the local community, or at least to the small-scale. Farmers provided for those living in the surrounding twenty miles or so, as did brewers, hunters, and all other such ‘small businessmen’, as they would be called today. The concept of a country provided security from invasion and legal support on a larger scale, but that was about it; any international trade was generally conducted between kings and noblemen, and was very much small scale.

However, since the days of the British Empire and the Industrial Revolution, business has got steadily bigger and bigger. It started out with international trade between the colonies, and the rich untapped resources the European imperial powers found there, moved on to the industrial scale manufacture of goods, and then the high-intensity sale of consumer products to the general population. Now we have vast multinational companies organising long, exhaustive chains of supply, manufacture and retail, and our society has become firmly rooted in this intense selling international economy. Without constantly selling vast quantities of stuff to one another, the western world as we know it simply would not exist.

This process causes many side effects, but one is of particular interest; everything becomes more expensive. To summarise very simply, the basic principle of capitalism involves workers putting in work and skill to increase the value of something; that something then gets sold, and the worker then gets some of the difference between cost of materials and cost of sale as a reward for their effort. For this to work, then one’s reward for putting in your effort must be enough to purchase the stuff needed to keep you alive; capitalism rests on the principle of our bodies being X% efficient at turning the food we eat into the energy we can use to work. If business is successful, then the workers of a company (here the term ‘workers’ covers everyone from factory floor to management) will gain money in the long term, enabling them to spend more money. This means that the market increases in size, and people can either sell more goods or start selling them for a higher price, so goods become worth more, so the people making those goods start getting more money, and so on.

The net result of this is that in an ‘expensive’ economy, everyone has a relatively high income and high expenditure, because all goods, taxes, land, utilities etc. cost quite a lot; but, for all practical purposes, this results in a remarkably similar situation to a ‘cheap’ economy, where the full force of western capitalism hasn’t quite taken hold yet- for, whilst the people residing there have less money, the stuff that is there costs less having not been through the corporation wringer. So, why would we find it tricky to live on less money than the top 4% of the world’s population? Blame the Industrial Revolution.

The Offensive Warfare Problem

If life has shown itself to be particularly proficient at anything, it is fighting. There is hardly a creature alive today that does not employ physical violence in some form to get what it wants (or defend what it has) and, despite a vast array of moral arguments to the contrary of that being a good idea (I must do a post on the prisoner’s dilemma some time…), humankind is, of course, no exception. Unfortunately, our innate inventiveness and imagination as a race means that we have been able to let our brains take our fighting to the next level, with consequences that have got ever-more destructive as  time has gone  by. With the construction of the first atomic bombs, humankind had finally got to where it had threatened to for so long- the ability to literally wipe out planet earth.

This insane level of offensive firepower is not just restricted to large-scale big-guns (the kind that have been used fir political genital comparison since Napoleon revolutionised the use of artillery in warfare)- perhaps the most interesting and terrifying advancement in modern warfare and conflict has been the increased prevalence and distribution of powerful small arms, giving ‘the common man’ of the battlefield a level of destructive power that would be considered hideously overwrought in any other situation (or, indeed, the battlefield of 100 years ago). The epitomy of this effect is, of course, the Kalashnikov AK-47, whose cheapness and insane durability has rendered it invaluable to rebel groups or other hastily thrown together armies, giving them an ability to kill stuff that makes them very, very dangerous to the population of wherever they’re fighting.

And this distribution of such awesomely dangerous firepower has began to change warfare, and to explain how I need to go on a rather dramatic detour. The goal of warfare has always, basically, centred around the control of land and/or population, and as James Herbert makes so eminently clear in Dune, whoever has the power to destroy something controls it, at least in a military context. In his book Ender’s Shadow (I feel I should apologise for all these sci-fi references), Orson Scott Card makes the entirely separate point that defensive warfare in the context of space warfare makes no practical sense. For a ship & its weapons to work in space warfare, he rather convincingly argues, the level of destruction it must be able to deliver would have to be so large that, were it to ever get within striking distance of earth it would be able to wipe out literally billions- and, given the distance over which any space war must be conducted, mutually assured destruction simply wouldn’t work as a defensive strategy as it would take far too long for any counterstrike attempt to happen. Therefore, any attempt to base one’s warfare effort around defence, in a space warfare context, is simply too risky, since one ship (or even a couple of stray missiles) slipping through in any of the infinite possible approach directions to a planet would be able to cause uncountable levels of damage, leaving the enemy with a demonstrable ability to destroy one’s home planet and, thus, control over it and the tactical initiative. Thus, it doesn’t make sense to focus on a strategy of defensive warfare and any long-distance space war becomes a question of getting there first (plus a bit of luck).

This is all rather theoretical and, since we’re talking about a bunch of spaceships firing missiles at one another, not especially relevant when considering the realities of modern warfare- but it does illustrate a point, namely that as offensive capabilities increase the stakes rise of the prospect of defensive systems failing. This was spectacularly, and horrifyingly, demonstrated during 9/11, during which a handful of fanatics armed with AK’s were able to kill 5,000 people, destroy the world trade centre and irrevocably change the face of the world economy and world in general. And that came from only one mode of attack, and despite all the advances in airport security that have been made since then there is still ample opportunity for an attack of similar magnitude to happen- a terrorist organisation, we must remember, only needs to get lucky once. This means that ‘normal’ defensive methods, especially since they would have to be enforced into all of our everyday lives (given the format that terrorist attacks typically take), cannot be applied to this problem, and we must rely almost solely on intelligence efforts to try and defend ourselves.

This business of defence and offence being in imbalance in some form or another is not a phenomenon solely confined to the modern age. Once, wars were fought solely with clubs and shields, creating a somewhat balanced case of attack and defence;  attack with the club, defend with the shield. If you were good enough at defending, you could survive; simple as that. However, some bright spark then came up with the idea of the bow, and suddenly the world was in imbalance- even if an arrow couldn’t pierce an animal skin stretched over some sticks (which, most of the time, it could), it was fast enough to appear from nowhere before you had a chance to defend yourself. Thus, our defensive capabilities could not match our offensive ones. Fast forward a millennia or two, and we come to a similar situation; now we defended ourselves against arrows and such by hiding in castles behind giant stone walls  and other fortifications that were near-impossible to break down, until some smart alec realised the use of this weird black powder invented in China. The cannons that were subsequently invented could bring down castle walls in a matter of hours or less, and once again they could not be matched from the defensive standpoint- our only option now lay in hiding somewhere the artillery couldn’t get us, or running out of the way of these lumbering beasts. As artillery technology advanced throughout the ensuing centuries, this latter option became less and less feasible as the sheer numbers of high-explosive weaponry trained on opposition armies made them next-to impossible to fight in the field; but they were still difficult to aim accurately at well dug-in soldiers, and from these starting conditions we ended up with the First World War.

However, this is not a direct parallel of the situation we face now; today we deal with the simple and very real truth that a western power attempting to defend its borders (the situation is somewhat different when they are occupying somewhere like Afghanistan, but that can wait until another time) cannot rely on simple defensive methods alone- even if every citizen was an army trained veteran armed with a full complement of sub-machine guns (which they quite obviously aren’t), it wouldn’t be beyond the wit of a terrorist group to sneak a bomb in somewhere destructive. Right now, these methods may only be capable of killing or maiming hundreds or thousands at a time; tragic, but perhaps not capable of restructuring a society- but as our weapon systems get ever more advanced, and our more effective systems get ever cheaper and easier for fanatics to get hold of, the destructive power of lone murderers may increase dramatically, and with deadly consequences.

I’m not sure that counts as a coherent conclusion, or even if this counts as a coherent post, but it’s what y’got.