In classical economics, scarcity refers to any resource (such as natural gas) which is limited in supply and from which demand must be satisfied.
In this context, the term is a relative one, as - ultimately - all resources are limited in supply.
For financial decision making purposes, scarcity often refers to the resource which is most scarce in the situation under review.
2. Development - developing countries - sustainable development.
In the context of development, scarcity means an extreme of short supply, leading directly or indirectly to human suffering or other severe problems.
- Reducing water scarcity
- “By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.”
- 2030 Agenda for Sustainable Development - UN Sustainable Development Target 6.4.