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Eradicating Global Poverty

Eradicating Global Poverty. How many people die every day simply because they are too poor to stay alive?. 20,000 people a day…. That means the world loses the population of New York City every year, just to poverty. -Jeffrey Sachs, The End of Poverty.

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Eradicating Global Poverty

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  1. Eradicating Global Poverty

  2. How many people die every day simply because they are too poor to stay alive?

  3. 20,000 people a day… That means the world loses the population of New York City every year, just to poverty. -Jeffrey Sachs, The End of Poverty

  4. How much of the world’s population is in poverty?

  5. Close to half, about 3 billion people

  6. How do you think the U.S. does at providing aid to countries faced with poverty?

  7. .16% of our GDP That is the smallest percentage of any industrialized country. -John Gaventa, Conference on World Affairs

  8. Types of Development Assistance • FDI • ODA (Bilateral Assistance) • World Bank • IMF • UNDP

  9. How much money does Africa receive in aid each year?

  10. How much do corrupt governments cost their countries each year? $25 billion/year

  11. $148 billion That’s right:+25 billion of aid-148 billion from corruption-123 billion -George Ayittey, Free Africa Foundation Founder, Conference on World Affairs

  12. The Three Levels of Poverty • Relative Poverty: lacking in things the middle class takes for granted • Moderate Poverty: $1-2 per day basic needs barely met • Extreme Poverty: Less than $1 per day cannot meet basic survival needs

  13. How much of Africa lives in extreme poverty?

  14. More than HALF -Jeffrey Sachs, The End of Poverty, 2005

  15. Life Expectancy • ██over 80 • ██77.5-80 • ██75-77.5 • ██72.5-75 • ██70-72.5 • ██67.5-70 • ██65-67.5 • ██60-65 • ██55-60 • ██50-55 • ██45-50 • ██40-45 • ██under 40 • ██not available

  16. Main Causes/Obstacles • Disease • Armed Conflict • Geographic Isolation & Lack of Infrastructure • Corruption • Natural Hazards

  17. Obstacle #1: Disease • Malaria – kills more than 1 million Africans/year -accounts for $1 billion in job absenteeism/year • HIV/AIDS – over 25 million of world’s 35-42 million AIDs sufferers in Africa • Disease and Poverty mutually reinforcing • Creates “Youth Bulges” – population made heavily of under 30 demographic

  18. Obstacle #2: Armed Conflict • Young demographic more likely to engage in armed conflict, civil unrest • Encourages mass rape, helps spread HIV/AIDS • Conflicts destroy limited infrastructure in place • Again, mutually reinforcing relationship with poverty

  19. Obstacle #3: Infrastructure • Inadequate schools, hospitals, access to clean water, and roads • Water, health care, and education can improve living conditions and create more skilled workers • Difficult geographic realities – drought • Without system of roads, bridges, ports, etc., countries cannot transport exports • Increasing exports one suggestion for developing economies in Africa • Vicious cycle?

  20. Obstacle #4: Corruption • Considered by many to be the greatest problem • Will aid money get where it’s supposed to? • Approx $148 billion/year funds lost to corruption

  21. Mobutu Sese Seko of Zaire (Democratic Republic of Congo) Stole perhaps $8 billion from his country Obstacle #4: Corruption

  22. Role of the World Bank and IMF • World Bank- lends money to developing countries for development programs • International Monetary Fund (IMF)- promotes international monetary cooperation, working for a stable exchange rate and economic growth • They allow countries to develop, but has held some of them to high interest rates, delineate how money is to be used, and require policy reform • Should there be debt relief for poor countries?

  23. History • Marshall Plan (Economic Recovery Program) • U.S. spent over $13 billion to revive post-WWII Europe from 1948-52 • Considered inspiration for many who believe massive aid/”Big Push” is best solution to global poverty

  24. History • Skeptics say that Europe was already industrialized, literate, and had democratic traditions • Supporters counter that massive aid worked for some Asian countries such as South Korea and Taiwan • Beneficiaries of massive Cold War aid; African countries receive far less aid • Hong Kong and Singapore’s success not directly related to aid

  25. History of the World Bank • Officially called the International Bank for Reconstruction and Development • Formed in 1944 at Bretton Woods • International Institution • Works closely with the International Monetary Fund

  26. History of the World Bank • Initially interested in developing industrial production in undeveloped countries • A “Top-Down” Approach, proposed by outsiders to model Western countries • Walt Rostow’s The Stages of Economic Growth – economic take-offs

  27. History of World Bank • Kennedy’s formation of USAID (State Department, not World Bank) • Africa ignored – U.S. focused on political alliances because of a lack of valuable resources

  28. History of World Bank • Robert McNamara -increased commitment to ending poverty -lending rose from $1 billion to $13 billion during his tenure

  29. History of World Bank • In 1970s, dues to oil crisis, McNamara instituted “structural adjustment” policies -increased privatization, smaller bureaucracies

  30. History of World Bank • 1980s – dominance of “neo-liberal” policies • “Washington Consensus” – favored market-based growth • Seen by many as unable to end poverty, lessen inequality

  31. The United Nations • 2000 – Kofi Annan’s “Millennium Development Goals” • 50% reduction in poverty • Along with other factors, such as eradicating hunger, promoting gender equality, and ensuring a global partnership • 2002 - “Monterrey Consensus” – rich nations pledge to donate up to .7% of Gross National Income to poverty reduction -Former U.S. Ambassador to UN Bolton has since hedged US commitment

  32. Millennium Development Goals • Eradicate extreme poverty and hunger • Achieve universal primary education • Promote gender equality and empower women • Reduce child mortality • Improve maternal health • Combat HIV/AIDS, malaria, and other diseases • Ensure environmental sustainability • Develop a global partnership for development

  33. US Perception & Role • What should our role in fighting poverty be? [Excerpt] • Misconception: we already give enough • War on Terror • Throwing money at them doesn’t solve the problem • Subsidizing…and dumping • Here, have some weapons

  34. Massive Aid • The G-8 in 2005 pledged to double spending on poverty to $50 bil/yr in 5 years/ .7% of GDP • Half of aid would go to Africa • Will these nations follow through? • Can massive aid solve the problem?

  35. Stopping Government Corruption • Stop paying bribes for market access • Extractive Industries Transparency Initiative • Africa is not a country • Be strategic!

  36. The Big Five Development Interventions Proposed by Jeffrey Sachs, director of the UN Millennium Project: • Boost Agriculture • Improve Basic Health • Invest in Education • Bring power • Provide clean water and sanitation Jeffrey Sachs in Africa

  37. NGOs • Be intentional • Where does the money go? • Where should reform come from? • A word from a Kenyan • What should NGOs give? Food, health clinics, etc.Knowledge & empowerment

  38. What can you do? • Play games & click. • www.freerice.com • www.freeflour.com • www.freepoverty.com • www.thehungersite.com • Talk about it. www.one.org • Buy things. www.joinred.org • Give great gifts. www.kiva.org • Go. Help. Teach. Heal. Give.

  39. Thought Question What is the best solution to combat poverty in Africa? What are the unintended consequences? How realistic is this in actually ending poverty?

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