The world population surged past eight billion on Tuesday, the UN said, warning that more hardship is in store for regions already facing resource scarcity due to climate change — but on Tuesday, a senior UN official said it was not a “doomsday scenario”.
While many worry about the impact of the growing number of people on a world already struggling with inequality, a climate crisis and conflict-driven migration, Ib Petersen, deputy director for management at the UN Population Fund, told reporters he considers this to be a “success story” for humanity.
“What is truly unique about this moment in history is not the number we have reached but the unprecedented demographic diversity,” Mr Peterson said.
The world population has doubled in the past five decades, hitting four billion in 1974. It took a little more than a decade for the planet to add its latest billion.
Middle-income countries, mainly in Asia, accounted for most of that growth, gaining about 700 million people since 2011.
India added about 180 million people and is set to surpass China as the world's most populous nation next year.
But the UN said population rates are expected to drop by 1 per cent or more in 61 nations.
This should keep the world from reaching nine billion people until 2037. The UN projects population will peak at about 10.4 billion people in the 2080s and remain at that level until 2100.
Mr Peterson noted there are two distinct issues to deal with: rapid population growth in some nations and a decline in others.
“Many nations are experiencing declining and ageing populations, while others have large youth populations,” he said. “In fact, the median age in Europe is 41, while the median age in Sub-Saharan Africa is 17.”
The US population growth rate in 2021 was only 0.1 per cent, the lowest since the country was founded. The current US population is 337 million and will reach 375 million in 2050.
Births have also been steadily declining in Europe and Japan, and China has struggled with the legacy of its One Child Policy programme, last year urging families to have a second and even a third child while also limiting access to abortion.
John Wilmoth, director of the UN Population Division, expects that for some of these countries, immigration will be the only source of growth.
Otherwise, he said, “they would be declining in size just based on the balance between births and deaths”.
Although slower population growth, if maintained over several decades, might help mitigate environmental degradation, conflating population growth with a rise in greenhouse gas emissions ignores the fact that countries with the highest consumption and emissions rates are those where population growth is already slow or even negative, said Maria Francesca Spatolisano, the UN assistant secretary general for policy co-ordination and inter-agency affairs.
“The majority of the world population growth is and will increasingly be concentrated among the world’s poorest countries,” she said.
“These countries which have significantly lower emission rates are likely to suffer disproportionately from the effects of climate change, in part because they lack the resources needed to adapt to these changes and to mitigate their impacts.”
Carbon emissions of the richest 1 per cent, or about 63 million people, were more than double the emissions of the poorest half of humanity between 1990 and 2015, a 2020 analysis by the Stockholm Environment Institute and non-profit Oxfam International showed.
Resource pressure will be especially daunting in African nations, where populations are expected to boom, she added. These are also among the countries most vulnerable to climate impacts and most in need of climate finance.
In Sub-Saharan Africa, where about 738 million people already live without adequate food supplies, the population is projected to jump 95 per cent by the middle of the century, the Institute for Economics and Peace reported.
“In order to usher in a world in which all eight billion people can thrive, we need the rapid decoupling of economic activity from the current overreliance on fossil fuel energy, as well as greater efficiency in the use of such resources,” said Ms Spatolisano.
Wealthy countries and the international community, she added, can help ensure that developing countries receive the necessary assistance, both technical and financial, so that their economies can grow.
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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