International Marketing 10th Edition by Michael Czinkota, Michael Brumbach, Ilkka Ronkainen

Exercise 3

The Dilemma of Rising Global Prosperity
Consumers in Europe, North America, and other advanced economies are well off. For decades, such consumers have enjoyed superior living standards and the ability to fulfill all their essential material wants. In population terms, however, the advanced economies represent only about one-sixth of humankind. Fortunately, citizens of emerging markets-for example, Brazil, China, and India-are now experiencing rapid gains in life quality. Economic growth rates have reached a critical momentum in such countries, and, for the first time in history, billions of humanity's poor are beginning to achieve decent living standards. In China and India, real per-capita incomes are now rising much faster than occurred at any time in history. In the coming two decades, up to three billion people will join the global middle class.
Simultaneously, however, the growing global middle class implies the world is entering an era of heightened demand for raw materials, commodities and other resources. Adding billions of consumers to the global marketplace implies the world can expect shortages and higher prices for energy, food, steel, and other precious goods. In addition, rising consumerism poses important challenges for the natural environment. As emerging-market consumers discard products and packaging, waste will pile up in landfills. Increased economic activity will generate pollutants that affect human health and may permanently damage the Earth.
The harmful side effects likely to arise as billions of people emerge from poverty poses one of humanity's greatest dilemmas. On the one hand, eradicating global poverty is a critical goal. On the other hand, the trend poses potentially grave implications for global resources and the natural environment.
What can be done to address this dilemma? What are the appropriate roles of governments, corporations, and consumers?