Global Megatrends The 2012 Update of Our Future World Dr Stefan Hajkowicz | Principal Scientist Stefan Hajkowicz, Hannah Cook, Anna Littleboy The Megatrends 1. More From Less It suddenly struck me that that tiny pea, pretty and blue, was the Earth. I put up my thumb and shut one eye, and my thumb blotted out the planet Earth. I didn't feel like a giant. I felt very, very small. - Neil Armstrong Food Water 1.2 billion people in regions with insufficient water 1.6 billion people in water-scarce river basins with inadequate capacity to develop International Water Management Institute World Energy Useage (Mtoe) Energy 6,000 2009 5,000 Current Policies 2035 4,000 3,000 2,000 1,000 0 Coal Data source: International Energy Agency, 2011 Oil Gas Nuclear Hydro Bioenergy Other renewables Minerals Source: Mudd GM, 2009. The Sustainability of Mining in Australia: Key Production Trends and Their Environmental Implications for the Future. Department of Civil Engineering, Monash University and Mineral Policy Institute. 2. Going, Going … Gone? Going, Going… Gone? The fate of biological diversity for the next 10 million years will almost certainly be determined during the next 50–100 years by the activities of a single species. Paul Ehrlich and Robert Pringle, PNAS 2008. Going, Going … Gone? Data Source: Global Biodiversity Outlook 3, Secretariat on the Convention on Biological Diversity, 2010 Going, Going … Gone? Red List Red List Extinction Risk Index 1 = No concern 0 = Extinct Data Source: Global Biodiversity Outlook 3, Secretariat on the Convention on Biological Diversity, 2010 Presentation title | Presenter name | Page 11 Going, Going ... Gone? Staying Put Data Source: Global Biodiversity Outlook 3, Secretariat on the Convention on Biological Diversity, 2010 3. The Silk Highway The Silk Highway It’s Been So Good in Australia (comparatively) GDP Growth Rates 20.0 15.0 India China Australia OECD7 10.0 5.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -5.0 -10.0 Data source: World Bank The Silk Highway A Shifting World Economy Source: Quah, 2011; Global Policy The Silk Highway Making Cities in 20 Years What Took Europe 400 Years Image source: (c) The Chinese UPLA urban planning network, http://www.upla.cn Presentation title | Presenter name | Page 16 Statistic derived from analysis of the United Nations, World Urbanization Prospects, The 2007 Revision Population Database 4. Forever Young As you grow older, you will discover that you have two hands, one for helping yourself, the other for helping others. - Audrey Hepburn Forever Young The Ageing Population – Australia Today we’re some 14% over 65 yrs old It will be 25% by 2050 Data Source: Australian Bureau of Statistics Forever Young Retirement Savings Gap – Tapered Retirement Source: Rice Warner Forever Young Diabetes and Overweight Projections Proportion of total population overweight 80% 70% 60% Canada 50% USA 40% England Spain Italy Austria Australia 30% France Korea 20% 1970 1980 Source: Organisation for Economic Cooperation and Development 1990 2000 2010 2020 Forever Young Wanting to Stay Active and Engaged 35,000 Sydney, Australia Number of Competitors 30,000 Brisbane, Australia 25,000 Melbourne, Australia 20,000 Edmonton, Canada 15,000 10,000 Toronto, Canada 5,000 0 1981 Portland, Oregon, USA Aalborg, Aarhus & Herning Denmark 1985 Data Source: World Masters Association 1989 1993 1997 2001 2005 2009 2013 5. Virtually Here Virtually Here The Growth of Online Retail Online as a Percentage of Total Retail Sales Retail Sales Volume 2012 5.1 % Source: Source: Reserve Bank of Australia, Australian Bureau of Statistics National Australia Bank report a 29% increase in online retail sales in 2011. 2015 10% Virtually Here Catch me if you can – New models of retail Tescos Virtual Grocery Walls Image Source: Flickr.com Virtually Here The Work (Live?) Anywhere City Currently 6% of Australian workers telecommute, 11% in the US and 10% in Europe (Access Economics). The Australian Government aims to increase teleworking to 12% of the workforce (DCDBE). In Queensland 58% of employees (1.1 million people) have a flexible work arrangement of some type. This includes 13.3% (253,000 people) working from home. Virtually Here The Offshoring Trend Data Source: BCG, OECD, NASSCOM Virtually Here The Offshoring Trend In Australia they cost $10,000 to $20,000 per month 6. Great Expectations Now, I return to this young fellow. And the communication I have got to make is, that he has great expectations. - Charles Dickens Great Expectations Maslow’s Hierarchy Self Actualization Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts Esteem – confidence, achievement, respect of others, respect by others Love and belonging – Friendships, family, partnering Safety – Shelter, personal security, productive employment, health, property Physiological Needs – Eating, Sleeping, Breathing, Drinking Great Expectations Declining Material Consumption $35,000 $30,000 20 $25,000 19 $20,000 18 $15,000 17 Domestic Material Consumption $10,000 Income (GDP Per Capita) $5,000 16 $0 1980 1990 Data Source: Organisation for Economic Cooperation and Development 2000 2008 Average GDP Per Capita for G8 Countries (excluding Russia) in 2000 USD Material Consumption (metric tonnes per capita) 21 Great Expectations The Jury is out - Experiences make us happier Published studies showing materialism is detrimental to well being: 1985 - Journal of Consumer Research 1992 - Journal of Consumer Research 1993 - Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior 1993 - Journal of Personality and Social Psychology 2003 - Journal of Personality and Social Psychology 2007 - Family and Consumer Sciences Research Journal 2007 - Journal of Social and Clinical Psychology 2009 - The Journal of Positive Psychology Published studies showing buying life-experiences improves well being 2010 - Journal of Personality and Social Psychology 2009 - The Journal of Positive Psychology 2009 - Journal of Research in Personality 2003 – Journal of Personality and Social Psychology Great Expectations Utility - A non-linear relationship Not likely Happiness (utility) More likely K 1 2 3 4 5 6 Beers (schooners) 7 8 9 10 Great Expectations Increasing Importance of the “Whole Package” Fair Trade Logo Sales Revenue – The Moral Dimension Source: Fair Trade Australia and New Zealand Basic Expectations 24% < US$1.25/day (47% in 1990) 33% of people in urban slums 15.5 percent of the world’s population (1 billion) hungry United Nations, 2012 Thank you Dr Stefan Hajkowicz Leader – CSIRO Futures | Principal Scientist t +61 7 3833 5540 e stefan.hajkowicz@csiro.au w www.csiro.au CSIRO FUTURES