Monday, July 16, 2012

Follow Up to Keynote Lecture at CUAHSI

UPDATE: Video of my talk appears below (my talk begins at minute 9:15).

I gave the keynote lecture earlier today at the CUAHSI 3rd Biennial Colloquium on Hydrologic Science and Engineering. I promised the audience I'd follow up on my blog with references to papers et.c that duscuuss further some the claims I made in the talk.  The CUAHSI folks tell me that the talk will be on YouTube shortly.

Here are a few items of follow up:
If there are any questions or requests for additional items of follow up, please let me know in the comments.  Thanks @CUAHSI for the opportunity!

Thursday, July 12, 2012

A Closer Look at Gobal Food Supply

According to the Food and Agricultural Organization, "On average, a person needs about 1800 kcal per day as a minimum energy intake." (A kcal - kilocalorie - is a measure of food energy, also known as the Calorie).  For comparison, the US government recommends 2,500 per day, on average (a recommendation that is certainly exceeded by most people, but I digress).

The unit of kcal/person/day provides a useful basis for evaluating total food supply as compared to population. The graph at the top of this post shows such an evaluation, based on data downloaded from FAOSTAT (thanks RTC!).

The data show that from 1961 to 2007, when the dataset begins and ends, global food supply in kcal/person/day has steadily and consistently increased such that it has been for many decades comfortably above the level deemed necessary to meet individual nutritional needs.

In fact, if food supply distribution were perfectly efficient (which of course it is not) the world could feed an additional 1-3 billion people with the food produced in 2007 (depending on your view of nutritional requirements). This can be hard to reconcile with the fact that in 2007 the UN found about 1 billion people globally to be "undernourished." So there is considerable "headroom" for progress even without increasing global food supply, and UN data show progress in recent years.

It is such simple math that leads the OECD and FAO to conclude:
Food production has not only kept pace with population growth, it has outstripped it. The world now produces more food than ever, and even countries that were once practically synonymous with famine have achieved self-sufficiency in staple foods... hunger is a problem of poverty, not scarcity.
And also:
[W]hen you look at the facts, there is no “agricultural” reason for hunger today. Global food production has increased more quickly than population over the past half century, and the EU and USA even had to bring in policies to get rid of “mountains” and “lakes” of food and drink.

If people are hungry, it’s because they can’t afford to buy food, not that there is no food to buy. There are many reasons for this. Politics, policies and poverty all intertwine, and as Nobel-prize winning economist Amartya Sen said “There is no such thing as an apolitical food problem.”
Let's dig a little deeper into the numbers.
The graph above shows the annual rate of change in kcal/person/day for the 20 years ending in 2007. The red line shows the linear trend in kcal/person/day, and shows that the annual rate of growth has just about doubled over that time period. The data illustrate that food supply has been growing faster than population, and this trend has been accelerating (which probably owes to a slowdown in population growth rates in addition to effects from agricultural intensification).

What does this data mean from the standpoint of discussing agricultural policies? I can think of several things.

1) It can be misleading to talk of a global "food supply" problem. Certainly, sustained improvement in agricultural productivity will continue to be important, but at present does not appear to be a limiting factor in meeting global nutrition goals. Talk of the need for a "second green revolution" not only fails to accurately reflect the so-called "first green revolution" (more on this to come) but also distracts from the fact that supply is presently not a limiting factor in meeting global nutritional goals.

2) Over many decades the global agricultural system has shown itself to be very robust to a range of shocks, including the widespread pattern of climate anomalies of the early 1970s, financial crises, and rapidly changing prices of inputs (notably energy). However, there could be unforeseen major shocks yet to come, including disease (e.g., wheat rust) and rapid climate changes (e.g., from a massive volcanic eruption). Policy should focus on the robustness of agricultural systems to such shocks.

3) The issue of global food is ultimately as much (if not more) a problem of distribution, poverty and governments as it is an issue of technological innovation. From where I sit it seems that far more attention it paid to the latter than the former. Every call for a "second green revolution" should be met with a reply focused on the social and political factors that affect meeting nutritional goals.

Finally, in my explorations of issues of food (the subject of several papers in the works and a chapter in my coming-into-focus new book), it seems that a focus on yield, productivity and total production (all important, of course) can obscure the larger focus on the ultimate goals of food policy -- feeding people. This post argues that an important but underutilized (in policy discussions, that is, perhaps not among specialists) metric of kcal/person/day can help to keep our attention on that larger focus.

Monday, July 9, 2012

Overcomplicating Debates Over Jobs

Writing in the NY Times, Thomas Edsall has an essay exploring whether technological innovation is leading us to a permanent era of declining employment possibilities:
The issue of the disappearing middle is not new, but credible economists have added a mnre threatening twist to the argument: the possibility that a well-functioning, efficient modern market economy, driven by exponential growth in the rate of technological innovation, can simultaneously produce economic growth and eliminate millions of middle-class jobs.
Support for this argument in Edsall's piece comes from Andrew McAfee at MIT who provides this graph.
McAfee explains the graph in ominous terms, focusing in on the red curve in the graph, which shows a ratio of employment to population (you can click on the graph to embiggen it):
Since the Great Recession officially ended in June of 2009 G.D.P., equipment investment, and total corporate profits have rebounded, and are now at their all-time highs. The employment ratio, meanwhile, has only shrunk and is now at its lowest level since the early 1980s when women had not yet entered the workforce in significant numbers. So current labor force woes are not because the economy isn’t growing, and they’re not because companies aren’t making money or spending money on equipment. They’re because these trends have become increasingly decoupled from hiring — from needing more human workers. As computers race ahead, acquiring more and more skills in pattern matching, communication, perception, and so on, I expect that this decoupling will continue, and maybe even accelerate.
McAfee tells Edsall:
“In my dystopian vision of the future, that red line (in the chart) keeps falling down – or suddenly drops off a cliff”
Sounds scary. But what is it that the red curve is actually showing?

The graph below shows the annual change in unemployment and the annual change in the employment/population ratio, using the same data presented by McAfee and over the same time period.
The graph shows that the complicated metric of employment/population is virtually identical to the more conventional metric of unemployment. Thus, the debate we should be having is not about a "red curve falling off a cliff" but rather, where do jobs come from?

Now, my revealing that the red curve in the McAfee graph is just a fancy way to convey unemployment does not tell us whether or not we are entering a dystopian era of machines run amok. But being clear in what we are talking about is a helpful first step.

Sunday, July 8, 2012

Where Do Jobs Come From?

I find it remarkable -- and telling -- that neither candidate for president in the United States has articulated a good, substantive answer to this question. Platitudes and exhortation are not a coherent economic policy.

According to the McKinsey Global Institute the world created 1.1 billion non-farm jobs from 1980 to 2010. Think about that. 1.1 billion, and 164 million of those in so-called "advanced economies." How did that happen? Where did those jobs come from? How will we make the additional 600 million jobs expected to be needed globally by 2030?

These questions have very clear answers, at least conceptually, which can be delivered in an elevator speech. Why can't our presidential candidates provide such an answer? 

Talking heads on TV don't do any better. I just saw Lou Dobbs on Fox News rattling on about entrepreneurs and small businesses, which was pretty weak stuff. The excerpt below from a debate on Fareed Zakaria GPS on CNN today also illustrates the poverty of this discussion.

Where do jobs come from?

Jobs come from an expansion of ebonomic activity, which is called economic growth. Where does economic growth come from? There are only a finite number of places. Any answer to the question about where jobs come from that does not invoke resources and innovation (but also effort and luck) is incomplete.

Any policies put in place to try to increase employment needs to explain how economic growth will increase, but also how the consequences of growth will be managed and sustained. Specifically, because the economy is in constant flux as we seek productivity gains through constant innovation -- which is necessary to expand economic activity -- there is a constant need to train and retrain the workforce to elevate skills. Under current trends, the world (and the US) will have an excess of low-skilled workers and a shortage of high-skilled workers. How will our leaders manage this churn? Someone should ask them. More "college" is not the answer.

Pop Quiz

What did I miss while away?

Here is one item: In an opinion piece in the NYT I read on the plane today, Timonthy Egan writes:
In March, the Intergovernmental Panel on Climate Change warned in a special report of “unprecedented extreme weather and climate events” to come. The events are here . . .
Which leads to a pop quiz: If the IPCC predicts events to occur in the 2070s and beyond, and such events are observed in 2012, then this combination of prediction/events makes the IPCC:

A) Wrong
B) Right
C) Even more right

*Extra credit points to anyone who can point to any predictions made by the IPCC SREX report on extremes (the one referred to by Egan) for a period that includes 2012.

**Double extra credit to anyone who can point to any climate scientist who has called out Egan and the NYT for such nonsense.

It is reassuring to see that one can go unplugged for a week and the world remains as it was;-) I had a wonderful holiday, normal service soon to return.