13
1.3.1.4 Criterion 4: Extreme Affordability
By definition, to support life, all people need reliable supplies of food, energy, and
water that must be of at least adequate quantity and quality. Because a significant
fraction of humanity has modest, or even minimal, financial resources, quality FEW
products are required at near-zero marginal price, even during droughts or floods,
harsh winters and hot summers, and economic downturns—extreme affordability.
Extreme affordability may necessitate massive economies of scale, householdlevel subsistence economies, government subsidies to production and storage, policies providing FEW accessibility and human rights, and government regulation of
minimum quality standards. The affordability, subsidy, and regulation for FEW
commodities can often be a barrier to private sector innovation and solutions
because maintaining low-cost access results in small (or nonexistent) profit margins
to producers and disincentives to investment. Thus, one of humanity’s most potent
problem- solving tools, private for-profit innovation, is often not fully engaged in
solving FEW problems.
1.3.1.5 Criterion 5: Governance-Heavy
The word governance refers to the processes by which groups of people make and
implement decisions, policies, and rules. As such, governance refers to the policies,
laws, institutions, and actions made by formal governments at all levels of society;
between and among governments (e.g., international treaties); and with entities
outside of formal government (e.g., private corporations and civil society organizations). Throughout this book, it is important to not confuse the words “governance”
and “government.” It has been said that governance is “governing with or without a
government, policy-making with or without politics” (Colombi and von der Pfordten
2011). Governance will be explored more deeply in later chapters, especially
Chaps. 6 (International Governance) and 8 (United States Governance).
Given that FEW commodities are critical for all human societies, it not surprising that they are subject to significant governance. Nations establish domestic policies on production and consumption, support public and private investment in
infrastructure, engage in international diplomacy, and have strategies to address
disruptions in supplies. Policies include:
• Recognition of many FEW commodities as a human right (see Sect. 6.2.4). For
example, through the United Nations, countries have asserted the right to an
adequate standard of living in the International Covenant on the Economic,
Social and Cultural Rights (ICESCR), which also refers to the right to food as a
vital element of an adequate standard of living (Article 11).
• Investment and incentives for the extraction/production and storage of food,
energy, and water.
• International arrangements to ensure external supplies from foreign nations
through bilateral and multilateral trade agreements (Chaps. 6 and 7). Natural
1 Introduction
1.3.1.4 Criterion 4: Extreme Affordability
By definition, to support life, all people need reliable supplies of food, energy, and
water that must be of at least adequate quantity and quality. Because a significant
fraction of humanity has modest, or even minimal, financial resources, quality FEW
products are required at near-zero marginal price, even during droughts or floods,
harsh winters and hot summers, and economic downturns—extreme affordability.
Extreme affordability may necessitate massive economies of scale, householdlevel subsistence economies, government subsidies to production and storage, policies providing FEW accessibility and human rights, and government regulation of
minimum quality standards. The affordability, subsidy, and regulation for FEW
commodities can often be a barrier to private sector innovation and solutions
because maintaining low-cost access results in small (or nonexistent) profit margins
to producers and disincentives to investment. Thus, one of humanity’s most potent
problem- solving tools, private for-profit innovation, is often not fully engaged in
solving FEW problems.
1.3.1.5 Criterion 5: Governance-Heavy
The word governance refers to the processes by which groups of people make and
implement decisions, policies, and rules. As such, governance refers to the policies,
laws, institutions, and actions made by formal governments at all levels of society;
between and among governments (e.g., international treaties); and with entities
outside of formal government (e.g., private corporations and civil society organizations). Throughout this book, it is important to not confuse the words “governance”
and “government.” It has been said that governance is “governing with or without a
government, policy-making with or without politics” (Colombi and von der Pfordten
2011). Governance will be explored more deeply in later chapters, especially
Chaps. 6 (International Governance) and 8 (United States Governance).
Given that FEW commodities are critical for all human societies, it not surprising that they are subject to significant governance. Nations establish domestic policies on production and consumption, support public and private investment in
infrastructure, engage in international diplomacy, and have strategies to address
disruptions in supplies. Policies include:
• Recognition of many FEW commodities as a human right (see Sect. 6.2.4). For
example, through the United Nations, countries have asserted the right to an
adequate standard of living in the International Covenant on the Economic,
Social and Cultural Rights (ICESCR), which also refers to the right to food as a
vital element of an adequate standard of living (Article 11).
• Investment and incentives for the extraction/production and storage of food,
energy, and water.
• International arrangements to ensure external supplies from foreign nations
through bilateral and multilateral trade agreements (Chaps. 6 and 7). Natural
1 Introduction